Arthur Hanson
Well-known member
As an investor, I will have a vested interest in the answers. Also, where should it definitely not go? And why on both, Thanks
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CHIPS Act money (corporate welfare) should go to Micron to better compete in memory. Only 2 percent of global memory supply is manufactured in the US, and all of that is produced by Micron. Without memory there is no logic. Micron is battling Korean giants and needs our help.
GF and Skywater are lost causes. Intel, Samsung, and TSMC do not need it. The chip shortage is over and for those of you who think building fabs in the US will solve our geopolitical semiconductor problems you are wrong. It takes the whole world to build chips. Will US consumers pay more for US based chips? Not likely.
Well done article by Nikkei on the complexity of the global semiconductor industry supply chain. It absolutely takes the whole world to build chips.CHIPS Act money (corporate welfare) should go to Micron to better compete in memory. Only 2 percent of global memory supply is manufactured in the US, and all of that is produced by Micron. Without memory there is no logic. Micron is battling Korean giants and needs our help.
GF and Skywater are lost causes. Intel, Samsung, and TSMC do not need it. The chip shortage is over and for those of you who think building fabs in the US will solve our geopolitical semiconductor problems you are wrong. It takes the whole world to build chips. Will US consumers pay more for US based chips? Not likely.
Exactly. Intel getting those money should build Packaging and Test in US.With all of this discussion about the CHIPS ACT, there is absolutely no focus on Assembly, Packaging and Test. If the US is serious about building an ecosystem in the US, then we need these elements back in the US as well. There are probably some towns in the Midwest where the cost of labor is low enough that it might make some sense to do this.
With all of this discussion about the CHIPS ACT, there is absolutely no focus on Assembly, Packaging and Test. If the US is serious about building an ecosystem in the US, then we need these elements back in the US as well. There are probably some towns in the Midwest where the cost of labor is low enough that it might make some sense to do this.
With all of this discussion about the CHIPS ACT, there is absolutely no focus on Assembly, Packaging and Test. If the US is serious about building an ecosystem in the US, then we need these elements back in the US as well. There are probably some towns in the Midwest where the cost of labor is low enough that it might make some sense to do this.
Packaging is labor intensive, cost is for sure a lot higher in Midwest.
But that what subsidies are supposed to do.
To support higher labor cost instead of support lower production yield.
Packaging also create more jobs.
Average skilled manual labourer job of that level in Kuangtung will easily hit CNY 15000-25000 + benefits and taxes
That's a minimum of $2800 per month, with average upper hitting $4700 in total cost of hiring per month.
In US, you can pay pretty much only salary for the job of this level with few taxes, and close to none social ensurance/pension/medical/maternity benefits.
ASE in Taiwan median salary only $20,000 per year. In China it will be a slightly lower than that.Average skilled manual labourer job of that level in Kuangtung will easily hit CNY 15000-25000 + benefits and taxes
That's a minimum of $2800 per month, with average upper hitting $4700 in total cost of hiring per month.
In US, you can pay pretty much only salary for the job of this level with few taxes, and close to none social ensurance/pension/medical/maternity benefits.
Labor cost in Midwest is not cheap. A store manager in a suburban Chicago Burger King told me last month that he can't find workers by paying $15 an hour.
He told me he's so happy that he "only" needs to work six days a week in July, compare to June.
ASE in Taiwan median salary only $20,000 per year. In China it will be a slightly lower than that.
The higher salary you mentioned are for engineers. Not labors in the production lines.
You can hire undocumented immigrants for cheap,it's actually very common in harvesting season
Mistery solved: Intel is going to build packaging and assembly facilities in Italy:Actual assembly line workers easily bag CNY 12000-15000 per months, which means CNY 15000-22000 in total employment costs. That for somebody with 5-7 years experience, 2-3 years of technical school, and maybe few extra courses, and certificates.
For an OSAT worker with university education, $2800 net salary will be the minimum. For line lead, or a shift head, they can net $4k-$5k. That's higher than a lot mid-career university educated engineers get outside of Silicon Valley in the USA, and is completely outside of realm of possibility for American manual labourers, and a lot of non-tech white collars.
Yes, South China is way more expensive than Taiwan, that's why there were so many Taiwanese working there.
Taiwanese enterprises fully deserve all the just criticism for screaming "Taiwan expensive!" while ignoring the glaring fact of their Chinese factories costing them more than operating in TW.