Congratulations on completely missing my point I guess? "Taking over" implies current, ongoing change. Asia being dominant in silicon manufacturing for ages; it has long since takEN over.
As for "leav[ing] everything that is hard work in the hands of China", that's rather simplistic. There is of course a tendency as laborers become wealthier for them to demand better pay and working conditions (as can be seen in Shenzen currently, for example) and ultimately refusing to take shit jobs, but that's a very one-sided view. Factories don't move or establish themselves after all, and the ultimate decision making behind this is entirely attributable to corporate boards, executives and shareholders. They chose to move there to keep (or increase) their profit levels rather than offer the kind of pay and working conditions required to keep manufacturing where it was. Of course this is again affected by policy, both local and international, but the main responsibility for this still lies with the corporations and not states or workers.
Complacency is not cause. The cause is the cost of doing business in NA is too high and the blame for that lies squarely on the astronomical cost of health care. It's really that simple. Look at how production of cars has moved out of the USA and what remains has been mostly foreign companies (German and Japanese) with non-union factories. This tendency has been primarily to avoid tariffs. Even Mexico and Canada have factories making cars for US companies. Nearly the entire rest of the world has less expensive health care than the USA. Another high cost is the disproportional salaries of executives in the USA. Most of the rest of the world does have this problem either.
Yes, health care costs are one of the biggest issues, also why most can't retire. Living costs come in second, such as housing, food, utilities, etc. They are massive compared to other places, which in turn demands higher pay for no benefit to companies located in US.
You are wrong to write “Chinese companies increased their spending” by 39% yoy in 2020 to $18.72 billion.
Chinese companies manufacture a small minority of the total chips manufactured in China. I would bet a large chunk of that money was spent by S.Korean, Taiwanese and other foreign companies.
Those numbers are for China as a geographic region.
If the spending is in China your distinction is academic. There is no South Korean company in China. They may be foreign in origin but the Chinese operations/branches are very much Chinese. Same applies to any other country. VW is a German company but when counting spending in electrifying America nobody will say "American companies" spending. VW is a foreign company for the US but the US branch is very much US.
"Various companies, both domestic and foreign, are ramping up production of logic and memory chips *in China*"
Not really. Is Tesla in China a Chinese company? Is their IP and knowhow to build EVs property of a Chinese company?
I’ve been following the semi sector for years now. All my paid sources make a clear distinction between domestic Chinese companies and foreign companies operating in China. Only Anandtech fails to make that distinction.
Then they are good as done then. Anything made in china belongs to china, anyone who says otherwise is either totally ignorant of how things work in china or is willingly overlooking that fact for the sake of china. Any big company that wants to make things in china has to work with a chinese company to do so, guess what? That chinese subsidiary technically owns the IP in china now, and good luck saying otherwise.
Ya one good example of this is ARM China, what is going over there?! The ARM China president hired security to block ARM UK from visiting, and ARM UK fired him and he's ignoring them. That's crazy, I wouldn't take that kind of risk.
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Shaunathan - Thursday, April 15, 2021 - link
This is fabulousRU482 - Thursday, April 15, 2021 - link
excellent word choiceDrkrieger01 - Friday, April 16, 2021 - link
Must be a chip off the ol' blocksseemaku - Friday, April 16, 2021 - link
Wow, this is one area Asia is taking over. 61% increase in Korea, 39% increase in China and 20% decrease in North America!Valantar - Friday, April 16, 2021 - link
"Taking over"? Isn't it like 20 years since NA was a dominant location for silicon lithography?yeeeeman - Friday, April 16, 2021 - link
Asia has been taking over ever since the West has become complacent and chose to leave everything that is hard work in the hands of China.Valantar - Friday, April 16, 2021 - link
Congratulations on completely missing my point I guess? "Taking over" implies current, ongoing change. Asia being dominant in silicon manufacturing for ages; it has long since takEN over.As for "leav[ing] everything that is hard work in the hands of China", that's rather simplistic. There is of course a tendency as laborers become wealthier for them to demand better pay and working conditions (as can be seen in Shenzen currently, for example) and ultimately refusing to take shit jobs, but that's a very one-sided view. Factories don't move or establish themselves after all, and the ultimate decision making behind this is entirely attributable to corporate boards, executives and shareholders. They chose to move there to keep (or increase) their profit levels rather than offer the kind of pay and working conditions required to keep manufacturing where it was. Of course this is again affected by policy, both local and international, but the main responsibility for this still lies with the corporations and not states or workers.
Gomez Addams - Sunday, April 18, 2021 - link
Complacency is not cause. The cause is the cost of doing business in NA is too high and the blame for that lies squarely on the astronomical cost of health care. It's really that simple. Look at how production of cars has moved out of the USA and what remains has been mostly foreign companies (German and Japanese) with non-union factories. This tendency has been primarily to avoid tariffs. Even Mexico and Canada have factories making cars for US companies. Nearly the entire rest of the world has less expensive health care than the USA. Another high cost is the disproportional salaries of executives in the USA. Most of the rest of the world does have this problem either.Gomez Addams - Sunday, April 18, 2021 - link
... does NOT have this problem either.I missed an important word.
Dug - Monday, April 19, 2021 - link
Yes, health care costs are one of the biggest issues, also why most can't retire. Living costs come in second, such as housing, food, utilities, etc. They are massive compared to other places, which in turn demands higher pay for no benefit to companies located in US.ricebunny - Friday, April 16, 2021 - link
You are wrong to write “Chinese companies increased their spending” by 39% yoy in 2020 to $18.72 billion.Chinese companies manufacture a small minority of the total chips manufactured in China. I would bet a large chunk of that money was spent by S.Korean, Taiwanese and other foreign companies.
Those numbers are for China as a geographic region.
at_clucks - Friday, April 16, 2021 - link
If the spending is in China your distinction is academic. There is no South Korean company in China. They may be foreign in origin but the Chinese operations/branches are very much Chinese. Same applies to any other country. VW is a German company but when counting spending in electrifying America nobody will say "American companies" spending. VW is a foreign company for the US but the US branch is very much US."Various companies, both domestic and foreign, are ramping up production of logic and memory chips *in China*"
at_clucks - Friday, April 16, 2021 - link
Of course I meant "but when counting spending in electrifying America everybody will say "American companies" spending".ricebunny - Friday, April 16, 2021 - link
Not really. Is Tesla in China a Chinese company? Is their IP and knowhow to build EVs property of a Chinese company?I’ve been following the semi sector for years now. All my paid sources make a clear distinction between domestic Chinese companies and foreign companies operating in China. Only Anandtech fails to make that distinction.
TheinsanegamerN - Friday, April 16, 2021 - link
Do they produce teslas in china?They do?
Then they are good as done then. Anything made in china belongs to china, anyone who says otherwise is either totally ignorant of how things work in china or is willingly overlooking that fact for the sake of china. Any big company that wants to make things in china has to work with a chinese company to do so, guess what? That chinese subsidiary technically owns the IP in china now, and good luck saying otherwise.
webdoctors - Sunday, April 18, 2021 - link
Ya one good example of this is ARM China, what is going over there?! The ARM China president hired security to block ARM UK from visiting, and ARM UK fired him and he's ignoring them. That's crazy, I wouldn't take that kind of risk.Dug - Monday, April 19, 2021 - link
Wonder how Intel gets away with it then, sense they have fabs there. I can't imagine Intel would give up or allow their IP to be stolen.Ptosio - Monday, April 19, 2021 - link
It's incredible how a tiny island of Taiwan has investments bigger than America, Japan and Europe COMBINED :oHow has the rest of the world fallen behind so badly?