[HN Gopher] Apple will soon receive 'made in America' chips from...
       ___________________________________________________________________
        
       Apple will soon receive 'made in America' chips from TSMC's Arizona
       fab
        
       Author : rbanffy
       Score  : 389 points
       Date   : 2025-01-14 16:56 UTC (6 hours ago)
        
 (HTM) web link (www.tomshardware.com)
 (TXT) w3m dump (www.tomshardware.com)
        
       | datadrivenangel wrote:
       | These chips are still sent to Taiwan for packing, so it's a good
       | step but not a complete step.
        
         | m348e912 wrote:
         | How does this make any financial sense?
        
           | _aavaa_ wrote:
           | This is how most modern supply chains look like.
           | 
           | Plus, chips are small in size and cost a lot so you can fit a
           | lot in a container. Per unit shipping costs probably come out
           | to be pretty low. Especially when compared to the political
           | costs and risks associated with _not_ onshoring.
        
             | CPLX wrote:
             | > you can fit a lot in a container
             | 
             | Guys these are microchips on wafers. You can put a million
             | dollars worth in your jacket pocket. They aren't being
             | shipped in containers.
        
           | arcticbull wrote:
           | Marine shipping is just about the most fuel efficient way of
           | moving things between any two places, by a lot. A 100,000 dwt
           | ship can get 1050 miles per gallon per ton of cargo. It takes
           | about a teaspoon full of fuel to move an iPhone sized device
           | across the pacific when I ran the numbers last.
        
             | Vt71fcAqt7 wrote:
             | Interesting. Could you give a brief description of how you
             | got that number? Eg. what factors were considered.
        
               | eric-hu wrote:
               | Those numbers match what comes up with a quick search:
               | 
               | https://www.extension.iastate.edu/grain/topics/Estimateso
               | fTo...
               | 
               | That study uses 1,043.4 mpg for the fuel economy of a
               | 100,000 dwt ship.
               | 
               | Videos of transportation ship engines are cool. Each
               | cylinder is wide enough for a person to lay down inside
               | it.
               | 
               | https://youtu.be/G0eMyA388bE
        
             | umanwizard wrote:
             | To ship things to/from these fabs by sea you have to add
             | the cost of shipping by truck between Phoenix and
             | (presumably) LA. Not sure how big of a difference that
             | makes.
        
               | nine_k wrote:
               | Chips are small, so one truck once a few days may
               | suffice.
        
               | CPLX wrote:
               | Airplanes. They use airplanes. We are talking about
               | microchips here, possibly the highest dollar per gram
               | substance that exists on the planet.
               | 
               | The interest you'd pay just losing a couple days in
               | transit time would exceed the cost of purchasing a
               | dedicated private jet and the crew to fly it.
        
               | jocaal wrote:
               | Imagine the insurance...
        
               | kstrauser wrote:
               | A semi truck carries +- 15 tons of cargo and gets an
               | average of about 6 MPG, so about 90 MPG/ton.
        
               | ponty_rick wrote:
               | Trains are pretty efficient as well.
        
           | fblp wrote:
           | I'm suprised they can't ship (flat) packaging that could be
           | used in Arizona with a simple assembly line.
           | 
           | If they had that packaging design then for this to make
           | financial sense the two way shipping (and loading, unloading,
           | custom clearance etc) would have to be less than shipping the
           | packaging, the setup cost per unit cost of putting the chip
           | in a box
        
             | krisoft wrote:
             | Wait, wait. In the context of semiconductor manufacturing
             | packaging does not mean what you think it means. It is not
             | putting the product in a paper box.
             | 
             | It is about cutting the wafer into individual chips, wire
             | bonding the silicone to pins, and covering the whole thing
             | with epoxy.
             | 
             | Here is a video which explains it better:
             | https://www.youtube.com/watch?v=7gg2eVVayA4
             | 
             | It would be indeed crazy if they would ship the ready chips
             | to Taiwan just to be put in a paper box.
             | 
             | basically the input of the process is a wafer which looks
             | like this: https://waferpro.com/wp-
             | content/uploads/2016/08/Patterned-Lo...
             | 
             | And the output of the process is something which looks like
             | this: https://res.cloudinary.com/rsc/image/upload/b_rgb:FFF
             | FFF,c_p...
        
               | zeusk wrote:
               | The packaging in this context is not wire bonding but
               | CoWoS - chip-wafer and wafer-wafer bonding.
        
               | krisoft wrote:
               | You are correct. I was just illustrating what kind of
               | processes belong to the umbrella term "packaging" in the
               | context of semiconductor manufacturing. Was not talking
               | about what particular process are missing from the
               | Arizona facility.
               | 
               | But you are right on that it is CoWoS which is the
               | missing ingredient.
        
             | j_walter wrote:
             | You seem to be confusing the term packaging...it is not the
             | box, it is how the chips are assembled together to make the
             | final product.
             | 
             | https://www.youtube.com/watch?v=-egYoxajTz0
        
             | alt227 wrote:
             | Dont downvote the guy for not knowing this very specific
             | definition of 'packaging'
        
           | snakeyjake wrote:
           | The machines and processes needed to package the individual
           | integrated circuits are fantastically expensive but the
           | margins are so low in that step that it's only profitable at
           | massive scales.
           | 
           | So you put the fantastically expensive machines near where
           | most of the customers are and most of the customers are in
           | Asia.
           | 
           | Works the same way with fiber optic cables. Making the long
           | skinny bits is hard and high-margin. Actually turning them
           | into cables is easy and low-margin.
           | 
           | So Corning makes huge spools of fiber optic cable in Arizona,
           | North Carolina, and New York (I think) and ships it off to
           | Taiwan and China where it is made into the cables that you
           | plug into stuff.
        
           | CPLX wrote:
           | These are literally microchips. Tens of thousands of dollars
           | of value in each gram.
           | 
           | Shipping cost is fundamentally irrelevant, you can put $100MM
           | worth on a direct flight and have room left over for your
           | family and friends.
        
             | umanwizard wrote:
             | Your overall point is probably right, but "tens of
             | thousands of dollars of value in each gram" seems like an
             | exaggeration. How much does one CPU weigh?
        
               | CPLX wrote:
               | Order of magnitude it's within range. A single wafer for
               | something higher end is worth tens of thousands of
               | dollars. So whatever that weighs. It's not much.
        
               | umanwizard wrote:
               | But surely a wafer weighs more than a gram, no?
        
         | hollow-moe wrote:
         | what is involved in the packaging process ? I believe they
         | don't ship fully assembled chips to Taiwan only to be put in a
         | pretty box ?
        
           | jsheard wrote:
           | I believe packaging in this context means taking the raw
           | silicon dies and assembling them into a package which can be
           | soldered onto a PCB (or put in a socket, but Apple doesn't
           | socket anything).
        
           | SSilver2k2 wrote:
           | I'm making an educated guess but probably the cutting of
           | chips from the wafers, placing them into the appropriate
           | ceramic socket types (DIP, BFGA, SMD etc), soldering the line
           | wires from chip to pin, encasing the chip, etc.
        
             | a1o wrote:
             | > DIP
             | 
             | I am happily imagining opening a recent Apple device and
             | seeing 74 gates with through holes in green PCBs, with an
             | Apple logo made in soldering lead marking in the corner of
             | the board.
        
           | virexene wrote:
           | I think "packaging" here refers to the process of putting the
           | silicon die in its plastic casing and connecting the die's
           | pad to the case's pins, see
           | https://en.wikipedia.org/wiki/Integrated_circuit_packaging
        
           | mechagodzilla wrote:
           | "Packaging" in this context means taking the wafer of compute
           | die (made in Arizona), dicing it up into individual die,
           | mounting it onto a silicon interposer (an even bigger die, no
           | idea where that's made, but probably taiwan) along with a
           | bunch of HBM die, then mounting that Si interposer on a
           | somewhat larger, very fine-pitched circuit board
           | ('substrate') that is essentially a breakout for power and
           | high-speed I/O from the compute die. That thing is the
           | packaged 'CoWoS' system, where CoWoS==Chip-on-wafer-on-
           | substrate, that eventually gets attached to a 'normal' PCB.
        
             | eric-hu wrote:
             | This sounds like a complex procedure. Are there currently
             | alternative packaging facilities that could do this work,
             | if Taiwan were locked into kinetic war?
        
             | ipdashc wrote:
             | What I've always wondered was, how is it possible to do
             | this process (or well, the less advanced version of it, for
             | smaller/older chips) cheaply/at massive scale, for those
             | ICs that cost a few cents in bulk?
             | 
             | Like, scaling wafer (die?) production to insanely low costs
             | makes intuitive sense. The input is sand, the process
             | itself is just easily-parallellizable chemistry and optics,
             | and the output is a tiny little piece of material.
             | 
             | But packaging sounds as though it requires intricate
             | mechanical work to be done to every single output chip, and
             | I just can't wrap my head around how you scale that to the
             | point where they cost a few cents...
        
           | j_walter wrote:
           | https://www.youtube.com/watch?v=-egYoxajTz0
        
           | Detrytus wrote:
           | Believe it or not, sending them overseas just to be put in a
           | box actually can be cost-effective. Like with those pears:
           | "grown in Argentina, packaged in Thailand, sold in UK"
           | https://www.birminghamfoodcouncil.org/2022/01/16/part-i-
           | pear...
        
         | dgfitz wrote:
         | Until 2027, yes.
         | 
         | https://www.tomshardware.com/pc-components/gpus/tsmc-is-repo...
         | 
         | "TSMC does not have an advanced packaging facility in the U.S.,
         | and its partner Amkor will only start packaging chips in
         | Arizona in 2027. As a result, Blackwell AI silicon produced in
         | Arizona will need to be shipped back to Taiwan for final
         | assembly, as all of TSMC's CoWoS packaging capacity remains in
         | Taiwan."
        
           | ttul wrote:
           | Given that there may be a 25% chance that China invades
           | Taiwan by 2030, having the ability to package SOTA chips in
           | the US by 2027 seems "soon enough".
        
             | risho wrote:
             | where did you get that number from
        
               | xeromal wrote:
               | There's a window where China will have it max capability
               | to invade for the next few years. After that their
               | population is going to start shrinking and every year
               | will be harder than the next to invade.
        
               | bluGill wrote:
               | The population of 18-30 year old males is generally what
               | matters for an invasion and China has been shrinking that
               | for a long time. The rest of the population can plan the
               | invasion, but they rarely actually do it. (a few
               | countries also invite young females to an invasion, but
               | that is not normal)
        
               | audunw wrote:
               | But they don't have energy independence or food security
               | yet, which is kind of a hard requirement for an invasion.
               | 
               | There's not enough rail lines and gas pipelines from
               | Russia to feed them with significant quantities of fossil
               | fuels.
               | 
               | Imagine how bad Russias invasion of Ukraine would've been
               | without energy independence and food security. The
               | invasion of Taiwan is an order of magnitude more
               | difficult, and Taiwan now has the recipe for how to knock
               | out the entire naval fleet of a more powerful nation (see
               | how Ukraine has essentially incapacitated Russia in the
               | Black Sea).
        
               | adamc wrote:
               | I would expect an invasion to prompt the US navy to put
               | up a blockade, disrupting China's oil supplies and
               | generally making it very hard to keep their economy
               | going. Admittedly, Trump is a wild card; he's random
               | enough that it is hard to be sure what would happen.
               | 
               | I do not think China could survive a blockade.
        
               | maxglute wrote:
               | Except TW TFR even worse than PRC TFR, and ultimately
               | scale effect takes over - PRC with crippled TFR still
               | generates about as much male new borns per year than TW
               | has men 18-40 total. PRC still on trend to generate 3-4x
               | more MEN than US projected to add population per year,
               | incidentally around the same as active duty military...
               | having enough bodies is not going to be an issue for
               | decades. Having enough nukes is.
        
               | xeromal wrote:
               | I'm not arguing against that at all. Just that if the PRC
               | wants it's best chance, the clock is ticking. It becomes
               | more costly the longer they wait.
        
               | maxglute wrote:
               | I disagree, bodies is not limitting factor for PRC, it
               | also becomes cheaper to wait for TW specifically because
               | TW male 18-40 is set to decline = less kill bots /
               | occupation force needed. Attacker:defender ratio (i.e.
               | commonly 3:1) = every defender TW loses due to
               | demographics, PRC with same TFR will come out
               | significantly ahead, will need less enforcement:civilian
               | ratio for occupation.
               | 
               | But ultimately, it's about hardware+industry - current
               | trend = regional force balance shifting in PRC favour vs
               | US+co every year with no end in sight. PRC better off
               | accumulating capabilities at scale, not just regional,
               | but global (i.e. prompt global strike) and increase
               | autarky (less net population + more electrifcation = more
               | calorie + energy security). All trend incentivizes
               | waiting and building.
               | 
               | TLDR waiting and building becomes less costly (or rather
               | less risky) to pursue PRC's ultimate strategic goals
               | associated with TW scenario... displacing US posture out
               | of east Asia and perhaps hitting CONUS infra at scale as
               | response to US intervention. The latter part is key,
               | there are important stretch goals to TW scenario that
               | secures PRC geopolitical interests for 50-100+ years.
               | It's much more important to be able to tackle those
               | "costly" scenarios "cheaper", where cheaper is also
               | relative to making intervention much more expensive for
               | adversaries, i.e. PRC "winning" hand in TW scenario is to
               | show US posture in east asia not sustainable, and CONUS
               | (including TSMC Arizona) not defendable.
        
               | KoftaBob wrote:
               | You know where
        
               | pdabbadabba wrote:
               | I'm not sure where GP's 25% comes from. But there have
               | been various assessments that China intends to "reunify"
               | with Taiwan by 2030. [1] Xi Xinping has also instructed
               | the PLA to be prepared to invade by 2027. [2]
               | 
               | If you then ask yourself whether China would rather
               | invade during the Trump administration (with its
               | tendencies towards isolationism and "deal making") or
               | roll the dice on a subsequent U.S. administration, you
               | might find yourself thinking that the odds actually seem
               | considerably higher than 25% that this could happen in
               | the next four years.
               | 
               | To the extent that this narrative comes via the U.S.
               | intelligence/defense community, one has to assume that it
               | may biased towards exaggerating the threat. I for one
               | hope that is the case, since I do not want to see a
               | U.S.-China conflict any time soon. At the same time, I
               | unfortunately don't think it's likely to be completely
               | baseless.
               | 
               | [1] https://media.defense.gov/2023/Apr/24/2003205865/-1/-
               | 1/1/07-...
               | 
               | [2] See, e.g., https://cimsec.org/the-maritime-convoys-
               | of-2027-supporting-t...
               | https://thehill.com/policy/defense/4547637-china-
               | potential-t...
        
             | ponty_rick wrote:
             | Would be interesting if China uses drones with technology
             | from Taiwan to invade Taiwan.
        
       | bitsage wrote:
       | Funny enough, Fab 21 was announced in May 2020 and completed
       | construction in July 2022, a month before the Chips Act was
       | signed.
        
         | j_walter wrote:
         | What makes you think construction was completed in July 2022?
         | The shell of Phase 1 may have been completed, but even now the
         | construction continues in Phase 1B and Phase 2.
        
           | bitsage wrote:
           | I'm going off the purely structural construction of the first
           | fab. There's a timeline on TSMC's site.
        
         | mywittyname wrote:
         | The announcement of this plant coincided with the announcement
         | of the Endless Frontier Act and CHIPS for America act, which is
         | what eventually became the bill we call CHIPS and Science Act.
         | 
         | This plant was the foundation that the CHIPS act was built
         | upon. The Secretary of State had to secure an agreement with
         | TSMC to build this fab before the bills could be drafted, as a
         | lot of the recipients of the funding are suppliers for this
         | plant.
         | 
         | It is completely truthful to assert that this is the result of
         | the CHIPS act. Congress agreed to introduce the bills as a
         | result of TSMC's agreement to build the fab in Arizona. If you
         | have to avoid giving Biden credit, then you can point out that
         | it was Trump's SoS who negotiated this original agreement.
        
       | lysace wrote:
       | Made using which process? The article doesn't mention this.
       | 
       | https://www.tsmc.com/english/dedicatedFoundry/technology/log...
        
         | choilive wrote:
         | 4nm
        
           | lysace wrote:
           | I thought Taiwan prohibited export of this kind of know-how?
           | What did I miss?
        
             | j_walter wrote:
             | They have adopted a n-2 type of rule for advanaced
             | tech...but as of yesterday they seem to have relaxed this
             | rule and approved transfer of 2nm from Taiwan fabs to the
             | AZ fab at some point in the near future.
             | 
             | https://www.extremetech.com/computing/tsmc-cleared-
             | for-2nm-p...
        
               | andy_ppp wrote:
               | Wow I did not know this and it is fantastic news,
               | surprised Taiwan allowed this as they see chips as being
               | the most important reason America would intervene if they
               | were invaded.
        
               | whimsicalism wrote:
               | I'm a China dove and I'd favor full-throated defense of
               | Taiwan in any invasion (much more so than Ukraine)
               | regardless of chips.
        
               | d3ckard wrote:
               | I don't disagree with the core premise, but why much more
               | than Ukraine?
        
               | whimsicalism wrote:
               | Taiwan is a long-standing well-functioning democracy and
               | a core ally. On the other side, I also view Russia's
               | grievances as somewhat more legitimate than China's.
        
               | DennisP wrote:
               | Addressing those "grievances" hasn't worked out too well
               | for Russia. They complained about Ukraine moving in the
               | general direction of NATO membership, and got Sweden and
               | Finland as actual new members of NATO. Finland has a
               | longer Russian border than Ukraine, and Sweden has a
               | regional navy that pretty much controls the Baltic Sea.
               | Both countries were pretty firmly neutral before the war.
        
               | bllguo wrote:
               | and that has what, exactly, to do with the legitimacy of
               | said grievances?
        
               | DennisP wrote:
               | Because for all of Russia's apocalyptic rhetoric about
               | the dire consequences of NATO membership on their
               | borders, they've done nothing significant about Finland
               | and Sweden actually becoming NATO members while stepping
               | up their military spending. By comparison, a little
               | political noise about Ukraine maybe joining NATO someday
               | is much less of a provocation, which makes it seem
               | unlikely to have been Russia's actual reason for
               | invasion. And from any reasonable ethical perspective
               | it's certainly not a legitimate one.
        
               | andy_ppp wrote:
               | The NATO stuff is such propaganda, the idea has always
               | been imperialism and to take the people and turn them
               | into Russians.
        
               | bllguo wrote:
               | in what sense could you _possibly_ argue this
               | 
               | from both legal and realpolitik lenses the Taiwan issue
               | is fully legitimate. your country has done far worse to
               | Cuba for far less. Even setting aside the historical
               | context and the Chinese civil war, what is illegitimate
               | about not wanting an antagonistic and belligerent foreign
               | power installing weapons in an island mere miles off the
               | mainland coast?
        
               | kombine wrote:
               | No grievances that Russia might have had can justify this
               | devastating war, and total annihilation, and mass murder.
        
               | DennisP wrote:
               | In case of invasion, it's not that unlikely that the fabs
               | in Taiwan get destroyed, or at least lose the ability to
               | keep making and selling chips while the conflict is hot.
               | In that case TSMC and Taiwan might prefer having a
               | backup. As long as the US doesn't confiscate the Arizona
               | fab, effectively siding with China, Taiwan would arguably
               | have more leverage by still having something of immense
               | strategic value to trade.
        
               | whimsicalism wrote:
               | The US is not going to hold on to some working fab for
               | some Taiwan-government-in-exile. As soon as you are out
               | of power, even your allies generally take the time to
               | plunder what they can.
        
               | DennisP wrote:
               | Just like the US plundered any Ukrainian assets they
               | could get their hands on, instead of supporting the
               | Ukrainian government and freezing Russian assets instead?
        
               | whimsicalism wrote:
               | The Ukrainian government is very much still extant
        
               | DennisP wrote:
               | Just as the Taiwan government could continue to be,
               | despite invasion from China.
        
               | throwaway-blaze wrote:
               | In the case of invasion, the equipment within the TSMC
               | factories will be affirmatively destroyed / sabotaged to
               | the extent that it can't be used or studied.
        
               | zanderwohl wrote:
               | Advanced lithography is like if a mystery cult were real:
               | Secret knowledge only understood by the most learned
               | initiates, tightly-guarded process, etching symbols that
               | do things...
        
               | lysace wrote:
               | Sadly true.
               | 
               | Even more depressing: it's like a very complicated baking
               | recipe arrived at by tweaking parameters over and over a
               | again. There is no deep understanding... just a giant
               | list of baking parameters that seem to work, sometimes.
               | 
               | (Yes, a bit like an AI. Hmm....)
        
               | lysace wrote:
               | I'd be extremely surprised if Apple is now able to source
               | CPUs for current-gen high-end iPhones from a US fab.
               | 
               | 2 gens ago, sure.
        
             | mdavidn wrote:
             | ASML, a Dutch firm, sells photolithography equipment to
             | TSMC.
        
         | entropicdrifter wrote:
         | The smallest process they've got up and running right now is
         | 4nm, last I checked
        
           | dietr1ch wrote:
           | As an outsider that means somewhere in 2nm-10nm as everyone
           | measures different things or have awfully off-standard
           | rulers.
        
             | ant6n wrote:
             | I'd say it means TSMC 4nm.
        
           | drexlspivey wrote:
           | So which device will these be for then? I thought Apple stuff
           | are always on the cutting edge node.
        
             | kcb wrote:
             | Apple still produces older generation devices long after
             | the latest ones are released. That's their whole strategy
             | to address the lower end market.
        
             | alt227 wrote:
             | iPhone SE
        
             | hinkley wrote:
             | Their new stuff is. The iPad mini just moved from the A15
             | to the A17, The first MacBook with Intel processors had
             | access to a bin that was not generally available yet. The
             | yield was too low for it to work for an IBM, a Sony, or a
             | Fujitsu. But Apple was low volume and high margin.
             | 
             | If I was nervous about a new fab, there's the iPhone SE,
             | the Apple TV, lots of choices for a less aggressive
             | manufacturing node and less aggressive sales figures. If
             | yield is shit you can still offer a product that isn't
             | killed by its own success.
        
               | mcintyre1994 wrote:
               | I wonder if Apple Intelligence is forcing them to create
               | new chips for things like the SE and TV instead of using
               | old chips which I think they'd usually do.
        
           | hinkley wrote:
           | And for the record the A17 Pro chip is 3nm. Used in the
           | iPhone 15 pro and the iPad mini.
           | 
           | But they could make iPhone 14's and the smaller 15's.
        
       | digdigdag wrote:
       | - Over 50% of the workers flew in from Taiwan to work on this
       | plant and make these chips.
       | 
       | - The chips still need to fly back to Taiwan to be packaged as
       | there are no facilities here with such a capability.
       | 
       | Made in america is a hard sell. But at least showing the glaring
       | STEM field gap in the U.S. is a start to finally addressing the
       | brain drain.
        
         | caycep wrote:
         | isn't packaging tech mostly from american companies like
         | applied mat/lam research? or am I missing something?
        
         | ge96 wrote:
         | brain drain from where? thought a problem is influx of workers
         | into us although more for software not sure of chip tech
        
         | epicureanideal wrote:
         | > STEM field gap
         | 
         | STEM salary gap
         | 
         | I suspect the Taiwan workers have on average much lower
         | salaries.
        
           | lysace wrote:
           | Yes, roughly speaking 1:4 compared to California.
           | 
           | Edit: This is not news. This (combined with their higher EE
           | education) is why Taiwan won IBM PC-clone-related
           | manufacturing in the 80s. And why they now have TSMC.
        
             | coliveira wrote:
             | Such a great victory for American industry... the future is
             | to bring workers from Taiwan with skills and willingness to
             | receive a fraction of US salaries.
        
               | Cumpiler69 wrote:
               | What are your realistic options?
               | 
               | Say TSMC pays supper competitive US salaries to attract
               | US-only labor, higher labor cost which is causing the end
               | product to be more expensive, which makes that fab
               | uncompetitive globally causing Apple to go buying from
               | someone else and TSMC either choosing leaving the US or
               | going bust eating the losses.
               | 
               | You can't compete with lower-wage countries in a
               | globalized world with no trade barriers and no tariffs,
               | when Apple wants higher profits and consumers want lower
               | prices. Something has to give.
               | 
               | You can put tariffs on imported chips to equalize the
               | field, but then iPhones would be more expensive for the
               | average American and Apple's stock would tank.
               | 
               | So, pick your poison.
        
               | alt227 wrote:
               | > when Apple wants higher profits and consumers lower
               | prices
               | 
               | Trump wants chips that say "Made in 'Merica". I dont
               | think cost comes into it that much.
        
               | Cumpiler69 wrote:
               | That's the catch, he said "Made in America", not "Made by
               | American workers" :)
        
               | kevin_thibedeau wrote:
               | The DoD is the driver. They're freaked out about the
               | supply chain vulnerabilities.
        
               | bluGill wrote:
               | More automation. Given the chemicals involved in fab work
               | in general I expect this fab is very automated just for
               | safety reasons and so very few employees are needed. Thus
               | the cost of labor isn't a significant factor.
        
               | Cumpiler69 wrote:
               | _> Thus the cost of labor isn't a significant factor._
               | 
               | It is. Semi fabs aren't fire-and-forget. You need highly
               | skilled people to constantly check and tweak all the
               | operations in a feedback loop 24/7 and every hour of
               | downtime due to any issue means millions lost. You hire
               | the right people to minimize that downtime while also
               | keeping the costs in check. It's a delicate balance.
        
               | tester756 wrote:
               | What % of the all fab costs over two decades are the
               | people? Including the cost of building it and
               | modernization
        
               | bilbo0s wrote:
               | Touche
        
               | hnfong wrote:
               | All money ultimately goes to labor. Rocks don't accept
               | cash as payment.
        
               | bluGill wrote:
               | True, but compared to the amount of production I would
               | guess these are only a few people.
        
               | coliveira wrote:
               | The problem was never the cost of labor. US tech is
               | already highly profitable and they can pay the full
               | salary if they wish to. But their desire is basically to
               | get a free card to pay lower salaries by any means, so
               | they can send more of those profits to shareholders. The
               | US is essentially a fighting arena between shareholders
               | and workers. The profit is there, it is just a matter of
               | how business want to keep always more of the spoils to
               | themselves.
        
               | hollerith wrote:
               | Do you also think that if a business loses money, the
               | employees should give some of their pay back to the
               | business? Or does this just go one way?
        
               | coliveira wrote:
               | Workers ALWAYS give back some of their salaries when a
               | company fails. They either get lower compensation or lose
               | their jobs altogether.
        
               | coliveira wrote:
               | What about the US providing actually good education that
               | can produce workers able to compete with Chinese and
               | other Asian countries?
        
               | Cumpiler69 wrote:
               | Why would well educated US grads go work in a semi fab
               | for 50k when they can make 5-10x in an office or at home,
               | getting people to click on ads in the bay area, or move
               | money around between tax heavens in new york?
        
               | coliveira wrote:
               | Your answer explains why the US is creating a failed
               | society. It either implodes or needs to control other
               | countries to maintain its profit and consumption levels.
        
               | epicureanideal wrote:
               | > You can't compete with lower-wage countries in a
               | globalized world with no trade barriers
               | 
               | I think you've correctly identified the solutions.
        
               | m4rtink wrote:
               | Rather, sounds like paying the real costs rather than
               | playing games to avoid that.
        
               | smileysteve wrote:
               | This solves for the US national security issue; in the
               | event of war between China and Taiwan (and a possible
               | proxy war with US), Taiwan immigration would qualify for
               | asylum.
        
               | selimthegrim wrote:
               | Would that be the thing that Trump says he wants to stop
               | on day one? Those asylum-seekers? The Trump who is
               | inviting Xi to his inauguration?
        
               | throwaway-blaze wrote:
               | You can't really be this obtuse. Asylum of high-skilled
               | silicon workers from an ally under invasion isn't nearly
               | the same thing as the asylum being granted over the last
               | 4 years to anyone who could download the CBP One app.
               | 
               | Trump is inviting Xi as a troll / show of power.
        
               | selimthegrim wrote:
               | Why don't you have Elon Musk explain that to Trump's base
               | who don't give a shit about Taiwan or H1-Bs
        
               | rafram wrote:
               | > the asylum being granted over the last 4 years to
               | anyone who could download the CBP One app
               | 
               | This is entirely unmoored from reality. CBP One only
               | allows people from Cuba, Haiti, Nicaragua, and Venezuela
               | to make appointments, and once they have one, they have
               | to actually show up and argue their case (why they need
               | to come to the US for their own safety). You can't just
               | show a border patrol officer that you have CBP One and
               | walk on through.
        
               | lysace wrote:
               | > This solves for the US national security issue
               | 
               | I mean, maybe it's okay that some other country is better
               | than you at something important. Excuse me but: the
               | arrogance.
        
               | bilbo0s wrote:
               | OK. Cards on the table.
               | 
               | This is not arrogance. This is not even about China and
               | Taiwan fighting a war. _(Heck, that 's probably never
               | gonna happen anyway.)_
               | 
               | This is about the US manufacturing important things on
               | our own. And it's not just the US either by the way. The
               | Europeans want to be able to manufacture their own chips.
               | The Russians. The Chinese. The Japanese. The Koreans. And
               | on and on and on.
               | 
               | Why? Because the current system is dumb for everyone who
               | is not Taiwan. For a whole lot of reasons. _(Most of them
               | economic.)_ No one wants to say that out loud, but it 's
               | the truth. We can't have everyone dependent on chips but
               | only one nation capable of making them. Again, we're not
               | the only ones who have come to this conclusion. Are the
               | Chinese also "arrogant"? Are the Japanese "arrogant"? The
               | Europeans? The Russians? Are the Koreans "arrogant"?
               | 
               | So everyone else can make common sense moves, but it's
               | "arrogant" if the US does the same common sense thing? So
               | we should just keep paying out an increasing share of our
               | GDP as chips become more and more important and expensive
               | while everyone else makes moves to cut their costs right?
               | Is that what we have to do to be considered not
               | "arrogant"?
               | 
               | People need to be a bit more reasonable.
        
             | hintymad wrote:
             | How much does salary contribute to the overall cost of
             | operating TSMC? Perplexity said that the average salary of
             | a TSMC employee is $76K a year, and TSMC had about 80K
             | people. So it cost them around $6B a year on salary. In the
             | meantime, their operational cost was about $46B a year, so
             | that's 13%. TSMC shipped about 16 million 12-in wafers.
             | Each 12-inch wafer can make about 300 to 400 chips. Let's
             | say 200 to stay on the conservative side. That will be 3.2B
             | chips a year. That means the cost per chip on salary will
             | be less than $2 a year. It looks HC cost is not that
             | dominant?
        
         | Xeronate wrote:
         | I read the main problem with hiring chip factory workers in
         | Arizona was the factory just didnt pay enough for the long
         | hours demanded. I looked up the median salary and its only 50k
         | so I'm assuming it's not crazy skilled labor (e.g. brain
         | drain). Taiwanese workers just seem more willing to do it.
        
           | rkagerer wrote:
           | _...just seem more willing to do it_
           | 
           | That's why manufacturing offshored in the first place,
           | companies feel they're receiving better value for money on
           | wages elsewhere for this kind of work (and these days not to
           | mention more & larger facilities, proximity to component
           | sources, and a strong ecosystem of supporting and
           | complimentary facilities).
        
             | Teever wrote:
             | I think that's obviously a major part of it but it ignores
             | other stuff like lax environmental and safety standards.
             | 
             | It would be interesting to see how much of the economic
             | advantage of off-shoring is due to lower wages due
             | intrinsic to lower cost of living vs stuff like
             | ignoring/bribing foreign officials or non-existent
             | environmenta/safety standards that objectively should
             | exist.
        
             | hintymad wrote:
             | Personally I won't mind paying more to buy manufactured
             | goods. My mom told me that a pair of sneakers before the
             | offshoring back in the late 80s usually cost more than $300
             | in today's dollars. Yes, it was expensive, but I would just
             | buy fewer and use the one for longer time. The reason is
             | that in the long run the manufacturing cost would get lower
             | due to increased efficiency, and loss of supply chain is
             | detrimental to the entire country - and our living expenses
             | will increase overall. Case in point, how much tax do we
             | have to pay and how much inflation do we have to suffer in
             | order to build those super expensive weapons? Part of the
             | reasons that we had $20K toilet and $100 screws is that we
             | simply don't have large enough supply chain to offset the
             | cost of customized manufacturing.
             | 
             | Besides, the US loses know-how on manufacturing,
             | eliminating potentially hundreds of thousands of high-
             | paying engineering jobs - it will also be a pipe dream that
             | we can keep the so-called high-end jobs by sitting in an
             | office drawing boxes all day. Sooner or later, those who
             | work with the actual manufacturing processes on the factor
             | floor will out compete us and grab our the cushy "design"
             | jobs.
        
               | whimsicalism wrote:
               | it's mostly just baumol cost disease.
               | 
               | you can feel free to buy american, i don't care so i
               | would prefer if it were not mandated and you get your
               | individual choice to pay more for your goods if you want
        
           | bluGill wrote:
           | 50k is just a step above McDonalds these days in a lot of
           | areas. Sure minimum wage might be $15k, but realistically
           | nobody pays that little except in very rural areas (if you
           | need a small number of low skilled employees a small rural
           | town is a perfect spot to build - but if you need more than a
           | small number they can't provide more at any price - you will
           | pay more in the city but there are a lot more people around
           | if you need more)
        
             | gjsman-1000 wrote:
             | Perhaps - in California.
             | 
             | Median US Salary is $59,384. Half of workers make less.
        
               | thecosas wrote:
               | Keep in mind the plant they are talking about is in AZ,
               | where median wages and cost of living are generally lower
               | than California.
        
               | hx8 wrote:
               | Medium individual income in AZ is ~37k. I'm not sure how
               | many Americans would give up a 40hour/week job for a 996
               | that pays 13k more.
        
               | BobaFloutist wrote:
               | AZ minimum wage is 14.70. If it was 996 and you somehow
               | only got straight time for working 72h a week, it would
               | pay 55000. Assuming there's no overtime exemption it
               | would be $67000. I'm pretty sure it's not a 996 in AZ.
        
               | TypingOutBugs wrote:
               | Why does it have to be 996 at TSMC in the US?
        
               | bluGill wrote:
               | By how much? Where I live in IA McDonalds is starting at
               | $17/hour, which is not that much behind California. (and
               | both states are large enough to expect some variation
               | depending on where you live)
        
               | onlyrealcuzzo wrote:
               | You need to factor in that only ~30% of workers work
               | full-time.
               | 
               | Men with a bachelor's degree who work full-time have a
               | median income is ~$89k - (basically the entire
               | demographic of these TSMC workers).
               | 
               | https://www.bls.gov/news.release/pdf/wkyeng.pdf
        
             | somanyphotons wrote:
             | McDonalds in Sunnyvale CA starts at 20/h, so 41k/year for
             | the lowest role
        
           | IshKebab wrote:
           | I spoke to a Taiwanese person and apparently the salaries
           | there are actually quite good, even by western standards
           | (normal ones; not SF). The downside is they have very very
           | long hours (996, barely any holiday, etc.).
        
             | 867-5309 wrote:
             | 996..? doesn't fit into weeks, months or years
        
               | melvyn2 wrote:
               | https://en.wikipedia.org/wiki/996_working_hour_system
        
               | rlp wrote:
               | 9am to 9pm 6 days a week
        
               | tokioyoyo wrote:
               | 9am-9pm 6 days a week.
        
               | codazoda wrote:
               | Why would they require these hours? In the U.S. I think
               | they would need to pay time and a half for anything north
               | of 40-hours. Seems like it would be cheaper to hire more
               | workers and not force the overtime. Then they might be
               | able to increase the salary some. Everyone wins except
               | the people who are willing to sacrifice the time for time
               | and a half pay.
        
               | d3nj4l wrote:
               | AIUI almost all salaried employees are exempt from
               | overtime pay in the US.
        
               | duskwuff wrote:
               | This is only accurate inasmuch as most salaried employees
               | are overtime exempt for other reasons (e.g. because they
               | are executive or administrative professionals). Paying
               | employees a salary, on its own, _does not_ make them
               | overtime exempt.
               | 
               | https://www.dol.gov/agencies/whd/fact-sheets/17a-overtime
        
               | kube-system wrote:
               | Is there ever a situation where it makes sense to pay
               | fixed salaries to non-exempt employees?
        
               | duskwuff wrote:
               | One that comes to mind is an on-site caretaker position
               | (e.g. on a remote property), where the employee is
               | effectively being paid to be available, not to do a
               | certain number of hours of work.
        
             | jonas21 wrote:
             | It's also highly-skilled, yet very boring work. The way it
             | was described to me is that every major piece of equipment
             | has a PhD assigned to it and their job is basically to
             | babysit the machine and troubleshoot when things go wrong.
             | 
             | US PhDs typically have other options and would consider
             | this sort of work a waste of their time.
        
               | schmidtleonard wrote:
               | There are loads of highly qualified US engineers who
               | would love to babysit enormously complicated industrial
               | equipment for a living.
               | 
               | But not for 50k, lol.
        
               | reginald78 wrote:
               | 996 at 50K is less than Arizona's minimum wage.
        
               | somanyphotons wrote:
               | The 996 should be regulated against, it's simply
               | unreasonable
        
               | JumpCrisscross wrote:
               | > _every major piece of equipment has a PhD assigned to
               | it and their job is basically to babysit the machine and
               | troubleshoot when things go wrong_
               | 
               | This works in Taiwan. It doesn't in America. The
               | Taiwanese workers will help transfer knowledge to
               | American workers; it will be the joint responsibility of
               | them both to come up with how those processes are adapted
               | for American preferences. (Probably more automation,
               | rotation between machines or possibly even not being
               | under TSMC.)
        
               | neltnerb wrote:
               | I mean, that was exactly the way the job was described
               | when I interviewed at Intel for a process engineer, and
               | everyone doing the same job was at the time a PhD
               | according to the interviewer. Did it change?
               | 
               | Being on call 24/7 to troubleshoot million dollar pieces
               | of equipment sounded like a poor life choice, so I didn't
               | take it. But Intel also hasn't exactly done great since
               | then...
        
               | bear141 wrote:
               | I know several people working as customer engineers in a
               | fab based in America. They are very much not PhD's or
               | even mechanical engineers.
               | 
               | They are each assigned one tool to maintain as you said.
               | They each make around 100K and 3 12hr days per week.
               | 
               | They were working in the automotive industry before these
               | jobs. Sounds pretty damn good to me, but I suppose that's
               | one reason American companies cannot compete with TSMC.
        
               | rcpt wrote:
               | I have a math PhD and a number of my colleagues went on
               | to finance jobs which they described as "babysit an
               | algorithm"
        
               | chasd00 wrote:
               | > The way it was described to me is that every major
               | piece of equipment has a PhD assigned to it...
               | 
               | did they mean that literally or just that an expert was
               | assigned to it? What kind of PhD would even be relevant
               | to maintaining machinery on an assembly line? Perhaps a
               | PhD on the operations of that specific machine but even
               | then, the person's knowledge would be so focused on
               | whatever physics/chemistry/science is being used that i
               | find it hard to believe a PhD would know what to do when
               | something broke without tons of specific training on the
               | hardware.
        
             | kkylin wrote:
             | Not just long hours right? Speaking to Taiwanese friends
             | involved in semiconductor work (not TSMC employees though)
             | it's the shift work that's really hard to manage in the US.
        
             | hangonhn wrote:
             | Even China has ruled 996 illegal in 2021: https://en.wikipe
             | dia.org/wiki/996_working_hour_system#Legal_...
             | 
             | No one should be forced to work those kinds of hours. It's
             | unreasonable to call Westerners/Americans lazy if they
             | refuse to work 996.
        
           | byw wrote:
           | Cost of living can be a lot lower in Taiwan, if your property
           | is already paid off.
           | 
           | Unfortunately housing is super overpriced, due to the Asian
           | mentality resulting in high property ownership.
           | 
           | Real estate is always the monkey wrench in the gears of
           | capitalism because of high necessity yet limited supply.
        
             | bugglebeetle wrote:
             | > Unfortunately housing is super overpriced, due to the
             | Asian mentality resulting in high property ownership.
             | 
             | I have no clue what this means and in countries like Japan,
             | housing is a depreciating asset vs. an investment, so...?
        
               | byw wrote:
               | More so in the Chinese-speaking world and South Korea
               | because the industrialization/urbanization is more
               | recent, so there's rising demand in the urban areas with
               | high population growth, resulting in high prices.
               | 
               | Japan's urbanization stopped long ago, and it's not
               | taking in immigrants fast enough, so the urban areas have
               | stopped growing.
               | 
               | The mentality refers to East Asia's deep agrarian root
               | that places high value on owning land that can be passed
               | down the generations (the alternative was often quasi-
               | servile farm labour that locks families in poverty).
               | Property purchases are usually multi-generational
               | efforts, so families can generally take the brunt of
               | overinflated prices.
        
               | numpad0 wrote:
               | 1. Japan's urbanization stopped long ago,          2. and
               | it's not taking in immigrants fast enough,          3. so
               | the urban areas have stopped growing.
               | 
               | it's just my gut feeling but feels like each of these
               | three statement can be individually debunked...
        
               | numpad0 wrote:
               | It's just an obvious nonsense. Housing cost is dependent
               | variable of local economic activities. People gather and
               | property prices soar. Taiwan is jam packed so land prices
               | would be higher relative to GDP per capita.
               | 
               | I think GP is finding concept of land scarcity non-
               | intuitive for some reason.
        
             | AnthonyMouse wrote:
             | > Real estate is always the monkey wrench in the gears of
             | capitalism because of high necessity yet limited supply.
             | 
             | This only happens when the government becomes captured by
             | land owners to constrain the supply, since otherwise you
             | can build up. But governments getting captured by land
             | owners happens _a lot_.
        
         | bee_rider wrote:
         | Also a lot of US STEM grads have their skills wasted in
         | unproductive fields, like the ad business.
        
           | kobalsky wrote:
           | the internet ad industry is raking billions from all over the
           | world into the USA, how can you call that unproductive.
        
             | elzbardico wrote:
             | Because is fucking undproductive, useless and detrimental
             | to society. Advertising is a cancer, an immoral activity.
        
               | otabdeveloper4 wrote:
               | If you owned a small business you'd be singing a very
               | different tune.
        
               | ambicapter wrote:
               | That's a problem that advertising both created and feeds
               | off of.
        
               | adamtaylor_13 wrote:
               | Hi. I own a business. I still find ads to be cancer.
        
               | wuliwong wrote:
               | You think all businesses should just spread awareness by
               | word of mouth? Can you put a sign on your store or is
               | that an ad? What if you don't have a store? Yes,
               | advertising can be really awful but that doesn't meaning
               | all advertising is "cancer." If you have a good business
               | that creates actual value for people, advertising it can
               | actually be seen as a good thing.
        
               | tivert wrote:
               | > If you owned a small business you'd be singing a very
               | different tune.
               | 
               | The problem with advertising is that _a little bit done
               | honestly_ is actually good and fine. What we actually
               | have way, _way_ too much, and it 's often dishonest and
               | manipulative.
               | 
               | It's a similar thing with finance. It's necessary, but
               | way too many talented people are spending their energies
               | on it.
               | 
               | Black and white thinking doesn't really capture the
               | situation, and ends up creating a lot of noise (BAN IT
               | ALL vs. IT'S ALL GOOD AND YOU LOVE IT, FIGHT!).
               | 
               | Honestly, I think it might be a good thing to put caps on
               | the number of people that can work in sectors like that
               | (and further limit the number of very smart people
               | working in them), to direct talented people to more
               | productive and socially beneficial parts of the economy.
        
               | tantalor wrote:
               | Those "US STEM grads have their skills wasted" are
               | solving those problems (optimal ad load, bad ads, etc.)
               | but its a very hard problem. Don't be so dismissive.
        
               | tivert wrote:
               | There are "very hard problems" that don't need to be
               | solved, or are far lower priority than other problems.
               | Hard doesn't imply being "productive, useful and
               | beneficial to society."
        
               | anonzzzies wrote:
               | Own a small business, still cancer. Will never use and lo
               | and behold, all runs fine.
        
               | threeseed wrote:
               | Most small businesses do not have the luxury of ready
               | made distribution channels.
               | 
               | Especially if it's an ecommerce business.
        
               | adamtaylor_13 wrote:
               | A business's viability outside of advertising doesn't
               | change the morality of advertising.
               | 
               | Regardless of which side of the camp you fall on, you
               | can't argue that ads are "good" just because some
               | businesses need them to survive. In fact, I'd wager if a
               | business NEEDS ads to survive, it's probably a net
               | negative on society as a whole.
               | 
               | I won't die on that hill, but that's my hunch.
        
               | threeseed wrote:
               | Your entire premise is ridiculous.
               | 
               | Advertising is nothing more than bringing attention to
               | your product to your target customer.
               | 
               | And without this so called immoral behaviour I fail to
               | see how _any_ business works.
        
               | tester756 wrote:
               | I disagree
               | 
               | There is good and bad advertising.
               | 
               | I'd want to receive ads for things that I'm really
               | interested in.
        
               | pythonguython wrote:
               | I can't relate to that. When I see a banner ad I find it
               | obtrusive whether it's from Bank of America or my
               | favorite HAM radio company. If I'm in the market for a
               | product I value hearing the testimonials of people in my
               | life rather than an advertisement.
        
               | tester756 wrote:
               | I'm mostly thinking about finding things that you werent
               | even aware that they do exist
        
               | layer8 wrote:
               | I'm trying to think of anything I find useful that I
               | stumbled upon thanks to ads over the past twenty years or
               | so, and I'm pretty much drawing a blank. It certainly
               | seems negligible.
               | 
               | The problem with prohibiting ads is how to prevent (or
               | even define) payed hidden promotions. But tracking and
               | targeted ads could be prohibited, which would already
               | make things much more civil and less relevant as a tech
               | profit center.
        
               | frickinLasers wrote:
               | The one case where I find ads useful, when word of mouth
               | isn't an option, is in a static image on a site (review
               | site, blog, whatever) where I'm researching a thing. The
               | ad would be related to that thing, doesn't need to know a
               | thing about me other than I'm browsing that page, and is
               | related to the content on that page. I click on those ads
               | sometimes.
        
               | BiteCode_dev wrote:
               | It's like saying there is good and bad diseases because
               | some solve other problems like space in nursing home.
        
               | tester756 wrote:
               | No, it isn't.
               | 
               | People want to buy things, especially the ones that make
               | their life easier, but you got to get to know them
               | somehow, right?
        
               | pcbro141 wrote:
               | Depends on the product being advertised. I don't see how
               | you can compare a product that enhances someone's life to
               | a disease.
        
               | whatever1 wrote:
               | Setting aside the moral aspect which is highly subjective
               | and seems to have a price tag (for example tech CEOs quit
               | any sort of morals for a good paycheck), the productivity
               | question is a measurable one.
               | 
               | Aka does advertising as a whole increase total
               | consumption or is it a zero sum game (aka send bigger
               | slice of the same pie to a competitor)
               | 
               | From what I know advertising does increase total demand
               | aka more things/services need to be produced and sold on
               | aggregate.
        
               | bee_rider wrote:
               | Some of the demand induced by ads is useful; people
               | becoming aware of stuff they didn't know exists, and
               | finding that it provides a useful service for them.
               | 
               | But most ads are trying to convince you to buy their
               | brand's version of a product that you already know of, or
               | (even worse!) a new version of an old product. Any demand
               | induced there is just wastefulness.
               | 
               | If Amazon can figure out that I'm interested in
               | headphones, I already know more actual information about
               | headphones than their ads will give me.
        
               | layer8 wrote:
               | > for example tech CEOs quit any sort of morals for a
               | good paycheck
               | 
               | An alternative explanation is that prospective tech CEOs
               | who are willing to overlook morals are scarcer and thus
               | mandate higher salaries. ;)
        
               | addcommitpush wrote:
               | Is increasing total consumption something positive?
        
             | whamlastxmas wrote:
             | By that definition, war is extremely productive
        
               | bluGill wrote:
               | At least a few evil people attack once in a while thus
               | proving some defense is needed so they they are not
               | completely unproductive/useless. Much as I wish they were
               | not needed.
        
               | tehjoker wrote:
               | what evil ppl? what attack?
        
               | bluGill wrote:
               | Putin is attacking Ukraine right now. There have been
               | various coups and attempted coups around the world.
               | Nigeria and South Korea both come to mind.
        
               | nateglims wrote:
               | It is though, more value is generated by the MIC than is
               | put in and war has yet to ruin the productive capacity of
               | the United States. The societal ills of this are why it's
               | popular to call America an evil empire
        
               | wuliwong wrote:
               | Ah the broken window fallacy.
               | 
               | https://en.wikipedia.org/wiki/Parable_of_the_broken_windo
               | w
        
               | nateglims wrote:
               | No actually, that's about the opportunity cost of war.
               | There's a left-wing argument I frequently see that the US
               | finds wars to increase profitability but I'm talking
               | about the propping up of firms to keep the industrial
               | capacity ready. It is not the most productive use of
               | capital, but it is productive.
        
             | hashishen wrote:
             | a profitable market can still be unproductive if the
             | overall result is a nuisance to society on almost every
             | level
        
               | mportela wrote:
               | like the healthcare industry in the US
        
             | bee_rider wrote:
             | It doesn't produce any things.
        
               | kibwen wrote:
               | Even worse, because advertising is a Red Queen's Race
               | where the only limit on expense is what your competitors
               | are spending, it's actually worse than unproductive
               | because it increases company expenses without increasing
               | product quality, leading to higher costs on everything
               | for everyone.
        
               | concordDance wrote:
               | You cannot be serious it. All of the ad tech companies
               | produce a service people want otherwise no one would use
               | them!
               | 
               | There may be other services that might be better if not
               | for network effects, but it is trivially true that a
               | search engine is better for most people than no search
               | engine at all. And _that_ is what is produced.
        
             | RobotToaster wrote:
             | It's parasitic, not productive.
             | 
             | A tick can contain a lot of blood, doesn't mean it produced
             | that blood.
        
               | concordDance wrote:
               | Ticks do not require the consent of the host to drink
               | blood.
               | 
               | Things like Google and Facebook _cannot_ be parasitic,
               | every dollar gained is a voluntary exchange with no
               | threats. People _choose_ to use Google and gain something
               | from doing so.
        
               | mjamesaustin wrote:
               | Yep if the host agreed to die, then the market is a
               | success. We've discovered the most efficient outcome -
               | sucking the customer dry until they die! Thank you to the
               | free market for delivering us this efficient result.
               | 
               | Remember kids - thousands dying from lack of healthcare
               | isn't a bug of the system, it's a feature. This has been
               | determined as necessary, nay even beneficial, by market
               | forces that can never be wrong.
        
             | BiteCode_dev wrote:
             | Stealing is raking billions every year as well, yet I
             | wouldn't call it productive.
        
             | avgDev wrote:
             | How do you feel about online gambling?
             | 
             | Imo, profits != productive or to a benefit of society.
        
           | pjc50 wrote:
           | If it's so unproductive why does it pay so well?
        
             | LittleTimothy wrote:
             | I think about this quite often. What I'd really like to
             | study at some point is: How much more does the receptionist
             | at JP Morgan's head quarters make than the receptionist at
             | Walmart's headquarters?
             | 
             | Because fundamentally I think there is an effect where the
             | people in proximity to _lots of money_ earn more. Obviously
             | the Walmart receptionist and the JP Morgan receptionist are
             | doing basically the same job. But the JP Morgan
             | receptionist is surrounded by people who wouldn 't think
             | twice about doubling the receptionists pay and I would
             | imagine that has a significant effect.
        
               | cbozeman wrote:
               | It's not the proximity to money, it's the real estate
               | tied to doing that job.
               | 
               | If you want to be the receptionist at Goldman Sachs at
               | their headquarters at 200 West Street, New York, NY
               | 10282, then you're looking at paying $616,250 for a 556
               | sq. ft. studio apartment. And that's just the housing. If
               | you want to live within 30 minutes of work, you can get
               | that number down to $400,000, but that's also a studio
               | apartment.
               | 
               | Then you have to consider some place to eat - or you
               | bring your own meals.
               | 
               | What about clothing? You need clothing that looks the
               | part.
               | 
               | It's the proximity to real estate, which I guess you
               | could argue is a proximity to "lots of money" as you put
               | it, but... not reeeaaaally...
        
               | Tade0 wrote:
               | Sure, but real estate is expensive in those places for a
               | reason - it being typically because a sufficient number
               | of people with lots of money want to buy it.
        
               | AnthonyMouse wrote:
               | There is only a weak correlation between local income and
               | housing costs, and most of that is that it's hard to get
               | extreme housing prices in areas with low income, rather
               | than that housing in high income areas is inherently
               | required to be expensive.
               | 
               | For example, Boston has a higher per-capita income than
               | NYC but somewhat lower housing costs, and Austin has
               | around the same per-capita income as Los Angeles but
               | significantly lower housing costs. Because it's a lot
               | easier to build housing in Texas than in California.
        
               | Tade0 wrote:
               | Experienced this(or actually, a similar phenomenon)
               | myself during the brief, beautiful moment in my life when
               | I was working in Switzerland and was making as much as
               | the locals, while hailing from a country with
               | approximately 20% the GDP per capita, if not less.
               | 
               | Crazy how the same box of pasta is suddenly three times
               | the price once you cross the border.
        
               | briandear wrote:
               | JP Morgan is also in NYC and Wal Mart is in Arkansas.
        
             | dml2135 wrote:
             | What makes you think pay is necessarily correlated to
             | productivity?
             | 
             | Taken to the extreme, literal theft can pay well, and
             | produces absolutely nothing.
             | 
             | Pay indicates the transfer of wealth -- it can be a
             | heuristic for productivity, sure, but productivity is
             | clearly not its only source.
        
             | cbozeman wrote:
             | Options traders are paid well. It's still unproductive.
             | 
             | You're just shifting around a bunch of numbers temporarily
             | to make a bunch of money for someone and lose a bunch for
             | someone else.
             | 
             | Lots of shit we do is well-paid and unproductive.
             | 
             | If, as a species, we eliminated all bullshit jobs, there's
             | a good chance only 20-30% of the species would be working.
             | Here in America, only around 50% of people are actually
             | working. Everyone else is in school, or retired.
        
               | concordDance wrote:
               | Options traders help with the efficient allocation of
               | capital, which is actually very valuable to society.
        
               | smallmancontrov wrote:
               | They are mercenaries hired to maximize the share of the
               | loot that goes to their employers.
        
             | layer8 wrote:
             | Because there are costs that are externalized.
        
             | caspper69 wrote:
             | These companies hire all of these exemplary graduates and
             | pay them so well because (1) they are flush with cash
             | because businesses are essentially held hostage to adtech;
             | and (2) so that they won't go out into the world and build
             | systems that make them irrelevant, as smart people are wont
             | to do from time to time. Someone on your payroll doesn't
             | have the time nor the inclination to knock you from your
             | pedestal.
             | 
             | Why else would Google need 182,000 employees? Or how about
             | Facebook with 67,000? Microsoft clocks in at a whopping
             | 228,000, and Apple at 161,000.
             | 
             | These are staggering numbers of employees. So many, in
             | fact, that it would be an exercise in futility to try and
             | manage so many for the number of products they offer,
             | especially Google and Meta.
             | 
             | It's cheaper to make busywork than risk the cash cow.
        
               | quesera wrote:
               | Re: Apple's 164K employees.
               | 
               | Keep in mind that approximately 50% work in the retail
               | stores.
        
               | caspper69 wrote:
               | Right, and at least Microsoft has a large sales
               | organization.
               | 
               | But Google and Meta?
        
         | isodev wrote:
         | > The chips still need to fly back to Taiwan
         | 
         | The planet burned, but at least we made a few chips in America.
        
           | fooblaster wrote:
           | you can fly a few hundred million dollars worth of chips in a
           | single flight. You need not be concerned. The impact from
           | temu shipments is several orders of magnitude higher.
        
             | fooblaster wrote:
             | e.g. you can get 572 a15 dies per 300mm wafer at 90% yield.
             | These likely weigh a few hundred grams.
             | 
             | By my rough calculations a million iPhones of a15s is about
             | 200kg of silicon. excluding packaging, which would dwarf
             | this mass entirely.
        
         | alt227 wrote:
         | can you really say the chip was made in America when it is only
         | the die wafer which was made there and the rest was made and
         | assembled in Taiwan?
        
         | bloomingkales wrote:
         | Off topic but currently relevant:
         | 
         |  _Over 50% of the workers flew in from Taiwan to work on this
         | plant and make these chips._
         | 
         | Those are the 50% we're willing to bring in no questions asked
         | via any visa program.
         | 
         | Not the elusive Java developer.
        
         | Salgat wrote:
         | For a new factory with a new entry into the local market it
         | makes perfect sense to bring in experienced workers for
         | knowledge transfer. This is more an issue if a decade later
         | this is still how things are done.
        
           | sct202 wrote:
           | Back when American companies were offshoring, the initial
           | start up teams were comprised of a lot of Americans who would
           | do commissioning and initial ramp ups while training up the
           | foreign workers. It's a lot easier to train people on a
           | production line that is proven to work.
        
           | tokioyoyo wrote:
           | Problem is, those jobs in emerging markets were desirable
           | compared to other jobs (for pay and opportunities), which
           | helped with talent growth. These factory jobs, in comparison
           | to other jobs, aren't that desirable.
        
         | hnthrowaway0315 wrote:
         | Maybe that's how US is going to have enough STEM talents --
         | just like WWI and WWII, take as many talents as possible when
         | the other parts of the world are in shit.
        
           | whatwhaaaaat wrote:
           | The scenario that we're going to be able to fight a war with
           | another first world power, where we will attack their
           | infrastructure but ours will be left untouched, seems
           | unlikely.
        
             | throwaway-blaze wrote:
             | China invading Taiwan seems a ton more likely than China
             | lobbing missiles into Arizona.
        
               | mywittyname wrote:
               | It seems likely enough if the situation escalates. The
               | conflict could be anything from a naval skirmish where
               | neither side attacks the other's mainland to a total war
               | scenario. It will likely start as naval-only and become
               | gradually more involved if no side backs down.
               | 
               | However, it's safe to assume cyber attacks will hit
               | Arizona. It's not unreasonable to assume crazy people
               | will attack critical infrastructure, and we'll have to
               | deal with the social fallout from that.
        
             | hnthrowaway0315 wrote:
             | We just need to make sure that we never fight directly with
             | another regional power, e.g. China or Russia. IMO, neither
             | of them wants a fight with the US too, because you don't
             | want to push a super power to the corner, EVEN if you think
             | you are good enough to win.
             | 
             | In the mean time, the situation in EU and Asia is going to
             | deteriorate and North America can absorb more talents as it
             | sees fit. The last two times it was mostly EU but this time
             | Asia might be the new talent pool we can draw from.
        
         | bbarnett wrote:
         | I think people are missing something, training.
         | 
         | It's a new fab, and people need to be trained on current
         | processes and work roles. If you have a skilled work force, you
         | use them to train.
        
         | nimish wrote:
         | > glaring STEM field gap in the U.S.
         | 
         | There is no such gap. The jobs do not pay Americans enough to
         | tolerate the conditions.
        
           | copperx wrote:
           | And the few people who tolerate such conditions are already
           | employed by game development companies.
        
         | MR4D wrote:
         | You have to walk before you can run.
         | 
         | You have to crawl before you can walk. Apparently this is where
         | we are at.
        
         | hammock wrote:
         | It's a start
        
         | kureikain wrote:
         | it's first step. you gotta do something to bootstrap, solve
         | chicken-egg problem. From what I can see around me, the "made
         | in america" is a no joke branding. a lot of pppl going
         | tobuyjust because of that. and may even consider it as social
         | status and their policial support.
        
           | someperson wrote:
           | The Purism Librem 5 phone is very expensive and unfortunately
           | not that popular. Haven't met anyone who uses one yet
        
             | MBCook wrote:
             | That's very niche. Very few people in the general
             | population will have heard of them.
             | 
             | Apple is well known. If they say the new iPhone SE 7 has a
             | Made In America chip, people will know about it to buy if
             | they care about that.
        
             | cbozeman wrote:
             | And it's also a pile of shit compared to an iPhone or a
             | Galaxy S device.
             | 
             | There's your real issue right there. People are already
             | paying $1199 for new phones. According to this article:
             | https://www.vox.com/technology/2018/9/13/17851052/apple-
             | ipho...
             | 
             | Another $100. That's a little over six years old now
             | though, so bump it up to $200.
             | 
             | Would I pay $1399 for an American made iPhone with American
             | made internals, as the article suggests it would cost
             | ($100, but I doubled it for inflation, because, why not?)?
             | You bet your sweet ass I would.
        
         | nimbius wrote:
         | made in america is also a federally defined standard that these
         | chips categorically _fail_ to meet. assembled in the united
         | states is more appropriate, and even then if you didnt hire
         | americans to do it, what was the point?
         | 
         | this is starting to feel like the best of intentions that has
         | spiraled into a political theatricality where close-enough will
         | be good-enough.
         | 
         | given the current state of declining US college enrollment, the
         | affordability crisis of college, the growing wage gap, the
         | failure of the minimum wage to keep up with the cost of living,
         | and the failure to reform predatory US student lending
         | practices I do not see how the US will in the next 25 years
         | _ever_ manage to curate the type of braintrust for which it was
         | once renowned across the globe.
        
           | enragedcacti wrote:
           | This is so disconnected from reality. They've gone from
           | breaking ground to replicating one of the most advanced
           | fabrication processes in the history of the world _at scale_
           | in about 4 years, but they'll be sending the dies off for
           | packaging while their packaging partner comes online so its
           | just political theatre?
           | 
           | Also, over half of the employees are local hires and the
           | ratio will increase as more of the fab spins up. IMO it would
           | be much worse political theatre to delay and balloon the cost
           | of the project by forcing TSMC to exclusively use a workforce
           | that has no experience with the companies tools and
           | processes.
        
         | tobiasdorge wrote:
         | Does anyone know the general path to get involved in this?
         | Perhaps its romantic, but this seems important, it seems hard,
         | and it seems like something I can be proud of working on (as
         | opposed to maximizing ad clicks). I'm just a SWE w/ a Comp sci
         | degree, so what's the entry-point here?
        
           | someperson wrote:
           | EDA software?
        
             | stevenwoo wrote:
             | It might be possible but domain knowledge _might_ give some
             | candidates a leg up on the competition, going in blind just
             | seems suboptimal, though most of the relevant EE
             | undergraduate classes were in sophomore and junior level
             | for me in the late 1980 's and I only got to use EDA
             | software when working a couple of semesters for AMD as a
             | junior.
        
           | Gomer1800 wrote:
           | Your entry point is a masters and probably Phd in Electrical
           | Engineering, specializing in some aspect of semiconductor
           | manufacturing. It's definitely not CS.
        
             | tobiasdorge wrote:
             | Surely there is a lot of software involved in the design /
             | operation of these fabs, it's not just designing the chip
             | directly. Another commenter mentioned EDA so maybe I'll
             | look into that.
        
           | pcdoodle wrote:
           | I'm not too sure but I would assume there's going to be
           | faster turn prototype chips in the USA now? Is packaging
           | needed to prove a prototype? Can we start buying IP blocks
           | and make our own ICs? I'd love a MCU with built in IMU and
           | wide range LDO, not sure if that's possible all on the same
           | node.
           | 
           | There's going to be some niches opening as a result of this
           | IMO.
        
         | enragedcacti wrote:
         | The chips still need to fly back to Taiwan to be packaged as
         | _packaging partner Amkor 's facility in Arizona won't be ready
         | until 2027*._ I'm not sure the cause of the delta but it could
         | be in part because Fab 21 got back on schedule rather
         | impressively following earlier delays.
         | 
         | * updated to reflect newer article that Amkor's facility is
         | delayed beyond late-2025
        
           | MisterTea wrote:
           | I was about to say, surly at some point in the near future
           | the USA will introduce this capability. Shame they did not
           | match each other in completion time.
        
             | enragedcacti wrote:
             | Yeah definitely unfortunate. That said, I'm guessing the
             | overall cost of overseas packaging is really tiny,
             | otherwise Intel would've made a great customer since they
             | are already packaging TSMC N6, N5, and N3 in New Mexico for
             | their Arrow Lake CPUs.
        
               | thehappypm wrote:
               | It basically rounds down to $0 if you're willing for it
               | to be slow. A single shipping container can fit millions
               | of chips
        
               | ggm wrote:
               | This is not adversarial thinking. Ukraine would be
               | delighted to hit one container with all Russia's advanced
               | chips going to e.g. Vietnam or China to be packaged and
               | sent back.
               | 
               | This is a massive supply chain weakness and presumably
               | will be addressed as soon as possible.
        
             | colechristensen wrote:
             | > Shame they did not match each other in completion time.
             | 
             | Why?
             | 
             | If the packaging facility was ready early it would have sat
             | idle losing money.
             | 
             | If it's ready late, products from the fab can obviously
             | easily be shipped off to be packaged.
             | 
             | Tight coordination of timelines adds needless cost when
             | there is an easy alternative.
        
           | onlyrealcuzzo wrote:
           | The hardest part is making the chips, no?
           | 
           | Packaging facilities cost ~20% of a fab, right?
           | 
           | Naively, I'm assuming packaging is also not as complicate and
           | difficult as fabrication.
           | 
           | Surely if they can build a fab in the US, they can build
           | packaging facilities, too.
           | 
           | Rome wasn't built in a day.
        
             | colechristensen wrote:
             | Packaging facilities are delayed but in progress.
        
         | programmertote wrote:
         | The 'brain drain' (as you refer to it) stems from
         | intelligent/motivated grads in the US for the last two decades
         | (at least) pursuing more lucrative fields like finance and
         | adtech (re: Google, Facebook). Or some pursue management route
         | (attending big MBA schools and switching to management roles
         | where they climb corporate ladder). In other words, there are
         | not a lot of college/grad students who want to pursue
         | traditional engineering routes in the US.
         | 
         | I myself was an electrical engineering (EE) major until I
         | switched to computer science in my third (junior) year of
         | college because like a friend of mine at the time told me, "<my
         | name>, if you don't major in computer science, you will not be
         | able to find a job easily after graduation". He was right. All
         | of my former college friends in EE ended up pursuing
         | programming jobs (a few of them now works for FAANG; I used to
         | work for one but left a year ago due to RTO). That is why the
         | US has no sufficient personnel to do traditional engineering
         | jobs and we have shipped off a lot of those to foreign
         | countries.
        
           | binarymax wrote:
           | Definitely true, as there weren't EE jobs here. Now that
           | we're moving chip manufacturing back, and with programming
           | job market being saturated, perhaps it will shift and EE will
           | pay more due to being more in demand
        
             | jopsen wrote:
             | I suspect the kinds of salaries that's possible in Silicon
             | Valley only happens because:
             | 
             | (A) Skills are fairly transferable. (B) There is a lot of
             | employers competing for workers. (C) An awful lot of value
             | is created along the way.
             | 
             | If you specialize in some tiny part of chip manufacturing,
             | there aren't many places you can transfer your skills.
             | 
             | Even if, in the future, you have multiple chip vendors.
             | They won't all use the same processes, and you might only
             | fit into one role at each of these businesses.
             | 
             | Maybe it's not that simple. But few chip companies have to
             | compete against startups for workers. And that probably
             | won't change.
             | 
             | Not saying the jobs can't be well paid, just that it's not
             | unlikely that it won't be absurd SV level salaries.
        
               | adamc wrote:
               | The same analysis makes me doubt those wages are likely
               | to prevail for software engineers. They are the result of
               | a particular time and place.
        
               | AnthonyMouse wrote:
               | > Maybe it's not that simple. But few chip companies have
               | to compete against startups for workers. And that
               | probably won't change.
               | 
               | It seems like what EE needs is something similar to open
               | source, so that _does_ happen.
               | 
               | The way things like Google or AWS got started is they
               | started with Linux and built something on top of it, so
               | it could _be_ a startup because they don 't first have to
               | build the world in order to make a contribution, and
               | they're not building on top of someone else's land.
               | 
               | There isn't any reason that couldn't inherently work in
               | EE. Get some universities or government grants to publish
               | a fully-open spec for some processors that could be
               | fabbed by TSMC or Intel. Not as good as the state of the
               | art, but half as good anyway.
               | 
               | Now people have a basis for EE startups. You take the
               | base design and tweak it some for the application, so
               | that it's a startup-sized job instead of a multinational-
               | sized job, and now you've got EE startups making all
               | kinds of phone SoCs and NVMe drives and Raspberry Pi
               | competitors and whatever else they think can justify a
               | big enough production run to send it to a fab and sell it
               | to the public.
               | 
               | An interesting license for this could be something along
               | the lines of: You can make derivative works, but you have
               | to release them under the same license _within five
               | years_. In other words, you get five years to make money
               | from this before it goes into the commons, which gives
               | you the incentive to do it while keeping the commons rich
               | so the next you can do it again tomorrow.
        
               | verisimilidude wrote:
               | I believe you've just described the RISC-V project,
               | though I could be mistaken.
        
               | AnthonyMouse wrote:
               | RISC-V is the ISA, which is a solid first step. What you
               | need is a production-ready fully open source whole
               | device, so that someone who wants to fork it only has to
               | change the parts they need to be different instead of
               | having to also re-engineer the missing components.
        
               | wbl wrote:
               | There were a ton of chip making startups in the
               | 1970-1980's. Now the processes are much harder to access
               | so you have fabless.
               | 
               | It's just maturity. You can't invent the op amp twice.
        
             | Kirby64 wrote:
             | The jobs needed for chip manufacturing aren't primarily EE.
             | It's largely chemical engineering with specializations
             | related to semiconductor tech. EEs use the tools developed
             | by fabs to make their products, but those are typically
             | separate companies (or, in the case of in-house fabs like
             | Intel, basically run as separate companies).
        
           | in-pursuit wrote:
           | What you said seems contradictory. You open with the premise
           | that intelligent youth go the finance / CS / MBA path instead
           | of engineering and then say that those who do go into
           | traditional engineering can't find jobs. Couldn't it be that
           | people don't go into engineering because there aren't any
           | jobs? Wouldn't the lack of jobs explain the low salaries and
           | thus the preference for more high paying alternatives?
        
           | ecshafer wrote:
           | Everyone I know that was in EE falls into two camps
           | basically:
           | 
           | 1. Became web developers
           | 
           | 2. Work in Defense or some other regulated industry that has
           | protections from being outsourced to China
        
             | bnetd wrote:
             | Is there a somber write-up anywhere as to the future of EE
             | in the West?
        
               | ecshafer wrote:
               | I don't know if there is a somber write up. But from what
               | I have heard from a lot of people, is that jobs designing
               | and making say PCB boards and electronic circuits just
               | don't exist. They are all in Shenzhen. Those American
               | firms that have American engineers still, seem to all
               | involve flying to those factories to help fix problems,
               | and are dead end jobs. At least thats my impression.
        
               | brickfaced wrote:
               | Having known several great EEs in FAANG who did exactly
               | that job, sometimes paying Chinese income tax due to the
               | length of their stays at the factory, that is my
               | impression as well.
        
               | bfrog wrote:
               | Limited to non existent jobs. Not much else to say, the
               | jobs like so many others have been exported. Taiwan and
               | China being the electronics and manufacturing centers
               | means design has steadily moved as well. Ask any board
               | house in the west how things are going, the ones that are
               | left that is.
        
               | RhysabOweyn wrote:
               | Chip design/semiconductors/etc. have been a dead end in
               | the US for 30+ years, but EE is a broad field and other
               | specialties like RF/power systems/anything defense
               | related are still in high demand. An EE with a PE will
               | have an infinitely easier time getting a job working at a
               | utility or engineering firm than any software developer
               | these days to be honest.
        
             | Kirby64 wrote:
             | Software jobs are more plentiful, sure, but you're
             | discounting the extremely high quantity of EE/CE jobs
             | available at semiconductor companies (Intel, AMD, and many
             | smaller ones) and companies like Apple. They don't pay as
             | well, but they can pay quite good over time and tend to be
             | more stable than software jobs.
        
             | 7thaccount wrote:
             | I'm a EE and had no problem finding a job and neither did
             | any of my classmates in my EE program (early 2010s). I also
             | didn't exactly go to anything approaching MIT, but it was
             | an engineering school and I had a decent GPA. Particularly,
             | there are a lot of well paying jobs in power systems with
             | good work life balance. We have an energy transition going
             | on, so that helps. Having an internship probably helped me
             | too. I acknowledge that things might have broadly changed.
        
           | rhubarbtree wrote:
           | Alternate explanation: electrical engineering is actually
           | really hard and some parts of computer science look
           | comparatively easier. Plus coding is startups is cool, EE is
           | still nerd as in Nerd.
        
             | herval wrote:
             | why would someone pursue a route that's harder AND pays
             | less AND has far fewer jobs available?
        
               | rjbwork wrote:
               | And has less cultural cachet.
        
               | PhilipRoman wrote:
               | I disagree. From what I've seen, the lower level you go,
               | the more advanced it is seen by other developers. As the
               | copypasta goes:
               | 
               | At the beginning, there was Purusha. From his face, born
               | was the Brahmin, the priestly caste, the tooling creator,
               | one who develops programming languages, compilers and
               | standard libraries.
               | 
               | From the arms of the Purusha, Kshatriya, the warrior
               | caste, was born. Kshatriya is the developer of systems
               | software; operating systems, database engines, graphics
               | drivers and high performance networked servers.
               | 
               | Then comes the Vaishya, the merchant caste, the
               | Application developer, who was born from the knees of
               | Purusha. From the feet of Purusha, the fourth varna,
               | Shudra, the system administrator, was born. Shudra serves
               | the above three Varnas, his works range from
               | administrating computers in bureaucratic organizations to
               | replying to support requests.
        
               | nemomarx wrote:
               | that's by other developers, but I think in the mainstream
               | know nothing culture people have an image of "coding"
               | that's more prestigious and hackery than EE?
        
             | Spivak wrote:
             | Hard and well paid gets a flood of people pursing it so
             | difficulty can't be the only explanation. Finance,
             | actuarial science, medicine, and law get plenty of
             | applicants. I think it's that CS is an office job that pays
             | well and is in-demand.
        
             | whateveracct wrote:
             | Nah I did EE and then CompE (which was just replacing some
             | later EE classes with hardware design stuff) and EE is not
             | "actually really hard" - although people like to put it on
             | a pedastel.
        
               | brailsafe wrote:
               | Compared to CompE or Comp Sci?
               | 
               | I never studied the hard sciences very seriously,
               | although I feel like in retrospect I could have done so
               | at much lesser proficiency than someone with much more
               | encouragement, discipline, and interest, so my path of
               | starting with web/software and then diving into
               | electronics and EE would feel quite different
        
             | upcoming-sesame wrote:
             | I studied both, can't say for sure EE was harder. Some
             | courses in computer science were extremely hard for me
             | (complexity, discrete math) and some courses in EE
             | engineering were equally hard (most of the physics courses,
             | analog circuits and more)
             | 
             | Both degrees can be made super hard, as hard as the school
             | desires them to be...
        
           | thinkingtoilet wrote:
           | It's not even brain drain, America's dominance came from the
           | fact that for nearly a century the brightest people in the
           | world were willing to give up everything to come here. That
           | is no longer the case. Today's Einstein probably isn't going
           | to immigrate here.
        
             | drivebyhooting wrote:
             | For nearly a century Europe incinerated itself twice over.
        
             | PittleyDunkin wrote:
             | > That is no longer the case.
             | 
             | For all I shit relentlessly on this country and its
             | culture, it's still an extremely attractive place to live
             | if you're well-situated to make money. (Most people are not
             | --hence my contempt for how the society functions. This
             | presumably DOES apply to an "Einstein", if indeed this
             | Einstein wants money.) China still has a way to go in
             | catering to and granting citizenship (or some amenable
             | equivalent) to foreigners.
        
               | cyberax wrote:
               | Going through the _legal_ immigration in the US is hell.
               | Even if you're immigrating through a "talent" visa. Never
               | mind regular work visa/GC.
        
               | PittleyDunkin wrote:
               | Well, what's the alternative? Live in some poor country
               | with a happy and contented existence? Fuck no, I want
               | money: happiness is for suckers
        
             | adamc wrote:
             | Einstein didn't emigrate to get rich, he emigrated because
             | the Nazi's took over Germany. Germany had the best
             | universities in the world before they took the path of
             | self-destruction. So that was a second, separate event that
             | helped America.
             | 
             | America stills gets a lot of immigrants.
        
               | junon wrote:
               | Pretty sure the use of "Einstein" here is symbolic, not
               | literal.
        
               | spacemadness wrote:
               | So use a different example? Einstein isn't
               | interchangeable, lol.
        
             | brickfaced wrote:
             | The US didn't win World War 2, break the sound barrier, or
             | put a man on the Moon only or primarily due to immigrant
             | workers. We scoured the country's public school system for
             | the sharpest young minds, sent them to institutions of
             | higher learning with rigorous curricula, and found them
             | positions in industry, government, or the military which
             | made good use of their talent. Fetishizing the "nation of
             | immigrants" narrative at the expensive of the native-born
             | Americans who actually built most of this country's
             | prosperity is, at best, ahistorical.
        
               | wbl wrote:
               | Our German scientists were better than their German
               | scientists. We had no real science PhD programs until the
               | 1920's. We had no scouting for young minds until the
               | 1950's.
        
               | krapp wrote:
               | Unless your ancestors crossed the Bering Strait ten
               | thousand years ago, calling yourself "native born"
               | doesn't mean a thing.
        
               | WillPostForFood wrote:
               | If you only came across ten thousand years ago, you are
               | just a colonist that killed and displaced the people who
               | came across sixteen thousand years ago. But that said,
               | native born has a definition, and it is where you were
               | born, not where your parents, grandparents or grand^14
               | parents was born.
        
               | TheGamerUncle wrote:
               | It is kind of disingenuous and dishonest to say that
               | there is no value or meaning on those Americans born in
               | American soil, a nation should prioritize the people that
               | live on it or well at least care for them and make them
               | useful for nation building in the future.
               | 
               | Canada has proven that importing punjabis for almost two
               | decades and ignoring the local people is not effective.
               | So yeah there is a meaningful difference and saying
               | native born in this context allows us to steer the
               | conversation towards taking care towards those in the
               | country already, which is something that neolib
               | governments have not done in the last decades.
               | 
               | I say this as a person that was not born in the country
               | he resides in now, but saying "calling yourself "native
               | born" doesn't mean a thing " is a dishonest way to try to
               | dissuade and delete necessary words that work towards
               | more fruitful conversatons about how to improve th
               | esytems in North America.
        
               | krapp wrote:
               | >Canada has proven that importing punjabis for almost two
               | decades and ignoring the local people is not effective.
               | 
               | Curious, that's what Americans once said about the Irish
               | and the Italians and the Germans and the French and the
               | Poles and the Chinese and Jews and Catholics and Muslims
               | and so on and on ad nauseum.
               | 
               | It's just a generational crab mentality born from
               | xenophobia. Every new wave of immigrants decides they're
               | "native" as soon as the next wave shows up. None of them
               | are any more native than the others.
        
               | scelerat wrote:
               | What's magic about the Bering strait?
        
               | krapp wrote:
               | It's always a treat knowing every comment you get is
               | going to either be triggered or purposely obtuse.
        
               | officeplant wrote:
               | >Fetishizing the "nation of immigrants" narrative at the
               | expensive of the native-born Americans who actually built
               | most of this country's prosperity is, at best,
               | ahistorical.
               | 
               | Except many of us can trace our family lines to
               | immigration. On one side I have to go back to the early
               | 1800's to see when they immigrated, but this is literally
               | a country of immigrants. (other half of the family is
               | late 1800s/early 1900s immigration)
               | 
               | Even today I would assume the average American doesn't
               | have to trace back more than 100-150 years to see when
               | part of their family moved here.
               | 
               | >We scoured the country's public school system for the
               | sharpest young minds, sent them to institutions of higher
               | learning with rigorous curricula, and found them
               | positions in industry, government, or the military which
               | made good use of their talent.
               | 
               | Don't even get us started on ahistorical nonsense when
               | you just want to make things up. Not when talented
               | folks[0] had to work through system that didn't want them
               | so they could eventually make all the difference.
               | 
               | [0]https://airandspace.si.edu/stories/editorial/hidden-
               | no-more-...
        
               | tcmart14 wrote:
               | We literally put a man on the moon because we acquired
               | Werner Von Braun and used his plans... I mean, we
               | probably would have eventually done it, but the timeline
               | likely would have been different and the soviets might
               | have beaten us to the moon, but the time line we are in,
               | we had a space program as successful as it was because we
               | acquired German scientists who were already thinking
               | about these problems a even a decade or so before we
               | started to invest into it.
        
               | throwaway48476 wrote:
               | That team was one of three that was developing rockets.
               | The others were air force and navy.
        
             | numpad0 wrote:
             | Today's Einstein ARE immigrating to US for such positions
             | as finance, adtech and management, ones that explicitly
             | produce no physical artifact.
        
             | niceice wrote:
             | That is still the case and no where else is even close.
             | 
             | https://www.statista.com/chart/30815/top-destination-
             | countri...
             | 
             | https://news.gallup.com/poll/468218/nearly-900-million-
             | world...
        
         | baxtr wrote:
         | Re the first point: Why do you think it is so difficult to
         | transfer chip production off Taiwan?
         | 
         | I don't think this is about salaries. Nor is this about
         | facilities.
         | 
         | This is about process know-how. And it's currently not
         | available outside of Taiwan. I'm glad we're finally starting to
         | transfer knowledge. It will take a couple more years.
        
           | amelius wrote:
           | How do we know there is knowledge transfer?
           | 
           | If I were Taiwan/TSMC, I would protect my trade secrets as if
           | my life depended on it (which may actually be true).
        
             | baxtr wrote:
             | We don't. We expect some, but you're right it won't be
             | transferred easily.
        
         | blobbers wrote:
         | That's really a training issue.
         | 
         | Making chips isn't something you learn the details of at
         | University. You can take all the classes you want in advanced
         | semiconductor techniques but the simple fact is University
         | level manufacturing is nowhere close to SOTA.
         | 
         | Basically, you need fab workers to spend time in Taiwan/China,
         | and then return to USA. It's the same model that most foreign
         | students use at schools in USA/Canada. Get USA/Canadian name
         | brand school on resume, learn english, and go back to home
         | country = profit.
        
         | Nickersf wrote:
         | I have two kids in grade school and middle school and I see why
         | we have a STEM gap. I have to constantly correct the learning
         | at home in math. Also, I think it's fair to assume that in
         | Korea, Japan, Taiwan, and China the school kids are actually
         | put on an academic grindset unlike here where there is such
         | little academic rigor or discipline being enforced by the
         | school it makes sense why the k-12 education numbers are as bad
         | as they are in the USA.
         | 
         | It might be worth getting up in front of the kids in middle
         | school + and saying "Hey you're in competition at a global
         | scale here. You're going to have to work your butts off to stay
         | relevant."
        
         | PittleyDunkin wrote:
         | > - The chips still need to fly back to Taiwan to be packaged
         | as there are no facilities here with such a capability.
         | 
         | This seems to be a much more achievable barrier to work around
         | than not having a fab.
        
         | matwood wrote:
         | Sure, but this is how a supply chain gets bootstrapped. All
         | those factories in China didn't magically appear one day. Just
         | like they didn't appear when Apple started moving operations to
         | Vietnam. You start piecemeal and build out.
        
         | maxglute wrote:
         | >50% of the workers flew in from Taiwan to work on this plant
         | 
         | I wonder what % of work they did.
        
         | comte7092 wrote:
         | Having a STEM degree isn't a substitute for real world
         | experience in a production facility.
         | 
         | Clustering is a feedback loop where production creates people
         | with experience in production, something needs to kickstart
         | that process.
        
       | ashoeafoot wrote:
       | Taiwan exodus in 3..2..1
        
       | duxup wrote:
       | Seems like this is actually happening.
       | 
       | I saw so many predictions of how this couldn't happen and "yeah
       | but" ... but it seems to be happening for the most part.
        
         | CPLX wrote:
         | Indeed. It's just bullshit, propaganda.
         | 
         | There's simply no real reason we can't have a deep and robust
         | manufacturing base in America. Well except for the fact that
         | some specific people made a whole lot of money while letting it
         | fall apart, and have paid for decades of media relations trying
         | to convince everyone otherwise.
         | 
         | If you're reading this statement I just made and want to
         | instinctively disagree with me, start by interrogating your own
         | opinion. Why do you think America can't compete with China, for
         | example, over the long term? What "well everyone knows" facts
         | are you using to create that opinion that you don't have any
         | first hand relationship to.
        
           | tombert wrote:
           | > Why do you think America can't compete with China, for
           | example, over the long term?
           | 
           | Not saying I necessarily disagree with you, but just to give
           | an example, the US has considerably better labor practices
           | and labor laws than China. It's not perfect but there are
           | protections about making sure people are paid what they're
           | owed, how much you are allowed to work someone, safety
           | protocols, etc. All of those things could, in theory, cost
           | more money and make labor more expensive.
           | 
           | Compare this to nations that don't have the same work
           | protections, where they can pay people peanuts and have them
           | work much longer shifts with effectively no protection (e.g.
           | Foxconn in China [1]).
           | 
           | This might translate to decreased cost, and Americans have
           | made it excruciatingly clear that we're apparently fine with
           | slave labor as long as it doesn't happen _within_ the US.
           | 
           | [1] https://www.dissentmagazine.org/article/chinese-workers-
           | foxc...
        
             | bun_at_work wrote:
             | Just calling out that worker protections and increased
             | labor costs seem to be the result of workers making more
             | money. As the work force becomes wealthier, they _need_
             | less money, and their standards rise. This means their
             | labor becomes more expensive and they demand safer
             | workplaces. They demand more time off. This happened in the
             | USA and is currently happening in China and other low-
             | labor-cost nations.
             | 
             | I think the person you responded to is right. The USA can
             | and should restore its manufacturing base, for many
             | reasons. The whole country would greatly benefit from the
             | return of blue-collar jobs.
             | 
             | I don't have sources for this, but the info is out there.
             | 
             | Also, there are a lot of nuances around this topic that I'm
             | not getting into here. Just want to acknowledge that...
        
               | tombert wrote:
               | Sure, but it's worth inquiring _why_ the jobs left in the
               | first place.
               | 
               | There's probably a few hundred reasons, but I think the
               | core one was "manufacturing in China is cheaper because
               | labor is cheaper."
               | 
               | Even if China starts demanding better worker protection
               | (and they should! I am actually fine with my products
               | costing more if I have a guarantee that the workers were
               | treated well), I think that there's still a reasonably
               | high chance that manufacturing would still move to
               | another developing country that doesn't.
        
               | CPLX wrote:
               | The core reasons the jobs left are industrial and
               | monetary policies.
               | 
               | Or, said another way, because the Chinese prioritized and
               | subsidized manufacturing growth and we did the opposite.
               | 
               | Why? Because it made some specific Americans very rich.
               | It also ruined the lives of many other Americans. While
               | making the country much less resilient to shocks or
               | conflicts.
               | 
               | Which is, of course, the problem.
        
             | tehjoker wrote:
             | Foxconn is a Taiwanese company. China's revolution is about
             | delivering for workers. I don't get where ppl are coming up
             | with "slave labor" when it is American allies possibly
             | operating in China's SEZ that are doing the bad stuff.
             | 
             | It's also simultaneously sanctimonious sounding when
             | development is very difficult and America sacrificed three
             | generations to industrial capitalism, stole half a
             | continent of land, and used slaves to do our own
             | development depending on how you count inputs to the
             | process.
        
               | tombert wrote:
               | Slavery was wrong even in the 1700s and and 1800s. I wish
               | it hadn't happened, but until we have a time machine
               | there's not a lot we can do about it.
               | 
               | Just because the US has committed major sins in the past
               | doesn't mean we should be slap-happy about other
               | countries repeating those sins.
               | 
               | It might be "sanctimonious", but I don't think "I'm
               | against slave labor everywhere" is an especially brave
               | take.
        
           | creddit wrote:
           | > Well except for the fact that some specific people made a
           | whole lot of money while letting it fall apart, and have paid
           | for decades of media relations trying to convince everyone
           | otherwise.
           | 
           | Who are some of these people?
        
       | xattt wrote:
       | Is this the first "Made in USA" chip in Apple devices since the
       | Fishkill PPC 970?
        
         | triactual wrote:
         | Weren't the Intel CPUs made in the US?
        
           | xattt wrote:
           | Oops, forgot about Arizona.
        
       | hettygreen wrote:
       | with required NSA backdoor of course.
        
       | sylware wrote:
       | This is only the first (significant) step for the american
       | continent to be able to build cutting edge chips (again).
        
       | seethishat wrote:
       | Off topic... Taiwan also machines and heat treats some of the
       | best cutlery steels in the world. Taichung City is famous for
       | this. This is not as delicate a process as producing CPU chips,
       | but it is hard to get right consistently.
       | 
       | Most all major cutlery companies have product lines that are
       | produced solely in Taiwan (Spyderco, Cold Steel, Demko, etc.)
       | 
       | It would be nice to see Taiwanese steel industy move some
       | production to the US as well.
        
         | WillAdams wrote:
         | Buck Knives at least, mostly manufacture in the U.S., and their
         | 110 model at least still arrives shaving sharp and keeps a
         | decent edge.
        
         | gonational wrote:
         | High-quality knives come from proper metallurgy, especially as
         | it relates to proper hardening steps. If you don't get these
         | things exactly right, the best machining on earth is not going
         | to produce even mediocre knives.
        
       | nottorp wrote:
       | As an european, all I wonder is if this will make Apple devices
       | even more expensive.
        
         | yello_downunder wrote:
         | My guess is no, it won't. This is US taxpayer money being used
         | to increase the manufacturing capacity available to the market
         | so that the US has domestic manufacturing when stuff goes
         | sideways. A similar thing regularly occurs with auto
         | manufacturing and manufacturing in country A usually frees up
         | capacity for other countries, resulting in slightly lower
         | prices.
         | 
         | What _could_ happen is that once the US has manufacturing
         | capacity it decides to tariff imported chips, causing your
         | country to retroactively do the same. This is decades away, and
         | the US has a problem sourcing chips it can trust right now, so
         | it 's not currently on the radar. It's not something I'm going
         | to worry about.
         | 
         | Viewed through a pessimistic eye, the US finally is realizing
         | that its arms production critically relies on chip production
         | and it can't says its chips are US made when selling arms on
         | the market. A change in mindset like this typically takes a
         | generation and so even though this change in weapons really
         | happened around the turn of the century, the people in power
         | have mostly retired and the new generation now understands this
         | reality.
        
       | __loops__ wrote:
       | 3nm? 5nm? What chips are being made? A chip isn't a chip
        
         | foxandmouse wrote:
         | If memory serves me right, it's the Apple S8 chip used in their
         | watches, built on a 7nm process.
        
       | hintymad wrote:
       | Do we know why the US government did not promise to buy chips but
       | to give tax breaks (or investment thereof)? Wouldn't promise to
       | buy create a better incentive to the manufacturers?
        
       | zombiwoof wrote:
       | Make America good at slave labor again basically
        
         | hintymad wrote:
         | Maybe this is the discussion worth having. Taiwanese engineers
         | competed to get into TSMC. Their management practically lived
         | in the factory to solve production issues when needed. The
         | local workers in the Arizona factory said the pay was pretty
         | good per another comment. Yet somehow we thought that we were
         | slaving the labors? What is the fundamental difference here?
         | Personally, if I were a worker who could find just a service
         | job that pays $30K a year or less, I'd kill to work for TSMC
         | for $50K+/year and learn everything I can about chip
         | manufacturing in my capacity. It would be proud to do it, and I
         | wouldn't mind some overtime.
        
           | hintymad wrote:
           | And I'm not sure why this got downvoted. Not that it matters,
           | but I'm very curious about why people were not happy with the
           | questions. My fundamental belief is that if someone chose to
           | accept an offer and then work hard, it's not slavery but free
           | will. But well, I guess American culture is interesting in
           | the regard. If I study STEM hard in school, I'll be a
           | "teacher's pet" or a nerd who knows only "how to cram". On
           | the other hand, if I free throw under a hoop 4000 times a
           | day, I'm DA man and it's worth the highest praise on the
           | level of "have you seen the LA of 4:00am". Or if I'm a banker
           | or a startup employee who worked 100hr+, I'm building the
           | future of the US, yet if I worked in a fab 996 on my own
           | will, I'll be a slave?
        
       | bfrog wrote:
       | Imagine TSMC not getting US funds to bring over a Taiwanese
       | workforce large enough to result in "Little Taiwan" being
       | constructed in the desert.
        
       | throwaway-blaze wrote:
       | They'll be flown from the US to Taiwan for packaging, at least
       | until packaging services exist here. Then they'll be flown to
       | China, Southeast Asia, India, or possibly Brazil for final
       | assembly into an iPhone or computer, at least until lower cost
       | assembly plants are built here or someplace cheaper like Mexico.
        
       | misiti3780 wrote:
       | How hard will this be to scale to up 50% of Taiwan production
       | into the US?
        
       | blackeyeblitzar wrote:
       | I like the idea of made in America and bringing manufacturing
       | self sufficiency to the US. But I don't like the idea of reducing
       | dependency on Taiwan, which makes it so that the world may ignore
       | their plight in face of increasing aggression from China. The CCP
       | is an authoritarian dictatorial government that seeks
       | illegitimate control over Hong Kong, Taiwan, Tibet, Xinjiang, and
       | other areas. They need to be stopped and the solution isn't to
       | remove incentives to defend those areas.
        
         | genidoi wrote:
         | There's a need to be pragmatic here; In the event of any
         | kinetic Chinese aggression, TSMC (and other co's) fabs are
         | going to be rendered inoperable, regardless of how well
         | executed a US response is.
        
         | kombine wrote:
         | The world will will not be able to help with their plight, just
         | as it was not with Ukraine and more recently Palestine. Might
         | as well secure the supply chain.
        
           | adamc wrote:
           | We can do lots of things to help. But we need to get our
           | military operational in that case.
        
       | rglover wrote:
       | This is really exciting. It'd be awesome if the rebirth of
       | American industrialism was tech hardware driven. It sounds like
       | this being mass production ready is still a few years off, but
       | kudos to Apple and TSMC for working to make this happen.
        
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       (page generated 2025-01-14 23:00 UTC)