*Investors Blog*

[supton]

Your chip example, how important it is and all…. Why were all those fabs moved overseas? Were those flying the red, white, and blue buying the US made chip vs the dumped overseas chip 25 years ago when all that industry went overseas?

Cheaper labor. Everyone else went, and if you want to compete (or survive), you follow. Also it costs money to keep up, billion dollar upgrades means few can afford their own fabs. Somehow it became better to partner with a foundry that served multiple companies "over there". Perhaps as things shifted from bipolar to CMOS, easier process with steps and less proprietary technology for all I know, that made it easier for companies to merge into using the same technology.

Once screw pitch got standardized, then anyone could sell a screw that could be used by everyone, but perversely, I bet there were less companies making screws. The only way to make money was through volume. I wonder if something similar happened, once you go mostly digital content, it's all just gates and connections. Analog requires transistor matching, resistors and capacitors (which eat space), high voltage handling.

I don't know who's left in USA. Polar Semiconductor is, and they proudly state they are in the USA (although Sanken still owns a piece). China wants to buy from China as it builds its economy. Big economy (that we no doubt funded) so no small incentive for US based companies to pursue.

I suspect some portion is environmental--some of the manufacturing steps were not so environmentally friendly years ago, and that no doubt helped spur the movement. I suspect it's cleaner now but when stateside had to clean up their act, it may have been just cheaper to offload for all I know.

 

[Pablo]

You’re reaching. I was talking about me and my family. If me saying how I feel made you think that, then you need to unpack your irrational thinking. You are now on ignore.

Reaching? I stated truth and you called it "whataboutism". You responded to that post in an odd way, you said "this hurts US", you said I had "blind loyalty" then later you say I'm projecting. Laughable.

You should have just ignored my post in the first place. Not sure why I get under your skin so much.

 

[ZeeOSix]

Lock down on the horizon?

 

[JeffKeryk]

Are those tacomas coming or going to Mexico?

How much does your theoretical widget cost to produce in the USA? How much does that one sell for?

The artificially low cost of junk dumped from other countries has undermined our manufacturing.

Your chip example, how important it is and all…. Why were all those fabs moved overseas? Were those flying the red, white, and blue buying the US made chip vs the dumped overseas chip 25 years ago when all that industry went overseas? Were they running with their stock increases instead of complaining and voting out the CEOs that were treacherously undermining our readiness, internal capabilities, and our fellow countryman’s jobs, in the name off a buck and bonus? Why would that change without parity in price? Because vendors got a subsidy under the chips act, are they going to lower their prices to the dumped Chinese cost out of the goodness of their hearts? Maybe they’ll sell their Silicon Valley mansions to make 25 unit apartments for underprivileged folks too? After all, it costs nothing to be a leader and set an example….

But hypocrisy abounds.

Trucks are coming into America. Beyond that, even the Dearborn made trucks use imported components, so it isn't just final assembly plant.

Widget cost is not my point; it is selling price. I am talking about inflation.

Sure, low cost of junk has undermined our manufacturing, as has low cost of quality has as well. That's capitalism, like it or not.

Fabs were moved overseas due to significantly lower cost (including gvt subsidies), fewer regulations and especially local talent. Of course there is more. Education is key and we are failing.

By the way, Silicon Valley's strength is innovation. And yes, Silicon Valley has to subsidize talent. It's been going on for a long time. The CEOs who do this better make more money, not less.

Interestingly, I was considering an Apple iPad Mini which is on sale for $399 which is $100 off retail. I wanted to re-learn the Apple O/S, etc. Maybe I'd better buy today?

 

[ZeeOSix]

So let's see... Say an item costs $100. You can get it made domestically or imported.
Tariffs increase the import price to $110.
Will the domestic seller sell for $100 or $110? What do you think will happen?
And then all of a sudden tariffs go away or imports are reduced; do sellers will go back to $100?

Economic experts have already predicted that many companies will "ride the tariff train" regardless if the tariffs effect them or not ... just like some companies rode the "inflation train" over the last few years, regardless if inflation really impacted them badly or not. So get ready for another "train ride".

 

[ArrestMeRedZ]

This topic certainly took a turn to the Dark Side. I hope the mods can delete the offensive posts and keep it going. If not, I understand.

 

[JHZR2]

Trucks are coming into America. Beyond that, even the Dearborn made trucks use imported components, so it isn't just final assembly plant.



Interestingly, I was considering an Apple iPad Mini which is on sale for $399 which is $100 off retail. I wanted to re-learn the Apple O/S, etc. Maybe I'd better buy today?

WOW, that’s really disappointing. Here I thought Camry, Accord, Sienna, odyssey were the highest domestic content vehicles with the trucks just behind. Maybe that’s old data.

I have found Mexican OE parts in my definitely US manufactured ram trucks


Consumer electronics is something that there is little to no hope for, unless these tariffs change things. I did think Apple was eyeing up some US manufacturing at one point, but maybe not? Even then what is it, slap a sticker and wrapper and put it in a box? buying may be a good idea. Where is the deal?

 

[JeffKeryk]

Economic experts have already predicted that many companies will "ride the tariff train" regardless if the tariffs effect them or not ... just like some companies rode the "inflation train" over the last few years, regardless if inflation really impacted them badly or not. So get ready for another "train ride".

Business as usual. Why should I sell my house under market? I love people but not that much... Ha!

 

[JeffKeryk]

Consumer electronics is something that there is little to no hope for, unless these tariffs change things. I did think Apple was eyeing up some US manufacturing at one point, but maybe not? Even then what is it, slap a sticker and wrapper and put it in a box? buying may be a good idea. Where is the deal?

iPad Mini at Best Buy Ends today...

Amazon as well.

 

[ZeeOSix]

Business as usual. Why should I sell my house under market? I love people but not that much... Ha!

Yes, capitalism is always looking or any excuse to make more profit, regardless if it's warranted or not.

 

[Gar]

If we are serious about on-shoring critical industries, it means taxpayers subsidize them, enabling them to withstand dumping by competing nation states. I fear we aren't serious.

 

[JeffKeryk]

Yes, capitalism is always looking or any excuse to make more profit, regardless if it's warranted or not.

I love Capitalism; it has raised more economies outta poverty than any other system. Competition is good for the consumer and drives the market. If it were not for the entrepreneurism enabled by Capitalism there would likely be no Silicon Valley. The local companies pump money into the schools because they cannot succeed without the talent. I remember all the soldiers from Vietnam who used their benefits to get the 2 year electronics tech degree at West Valley Community College. Classes were always impacted; both day and night. DeAnza developed our nation's best computer programming curriculum in the nation. I am a beneficiary of that program. Then all the local Universities with their "High Tech Business Management" degrees. We fueled the Valley. Unfortunately as growth spiraled, companies had to look elsewhere for qualified talent.

The rest is history. We changed the world, via Capitalism. Give the people what they need and they will beat a path to your door. Everyone wins.

 

[rijndael]

If we are serious about on-shoring critical industries, it means taxpayers subsidize them, enabling them to withstand dumping by competing nation states. I fear we aren't serious.

We don't play the long game well. We'd have to look beyond 4 years.

 

[JeffKeryk]

If we are serious about on-shoring critical industries, it means taxpayers subsidize them, enabling them to withstand dumping by competing nation states. I fear we aren't serious.

The Chips Act is a conscious decision to do just that.
When Tesla was looking for a location to build their Mfg plant, Fremont gave them a sweetheart deal to kick start the ex NUMMI plant. The local economy suffered when GM and Toyota left; NUMMI was their biggest employer. Musk thought the plant was too big. Today NUMMI is the #1 American car plant by production and employs more than 20,000 workers. An American success story!

Subsidies can work to jump start business, but it takes time and commitment. Oh yeah, I think my Model 3 is the most American made car, or at least one of them. That's a key reason I bought it.

 

[ZeeOSix]

I love Capitalism; it has raised more economies outta poverty than any other system. Competition is good for the consumer and drives the market. If it were not for the entrepreneurism enabled by Capitalism there would likely be no Silicon Valley.

Yes, but it can also be abused given the right circumstances, just like seen with the big inflation surge and most likely with the up coming possible tariff surge due to everyone jumping on the "tariff train" just for the capitalistic opportunity to make more money. That makes people pay more money so they can make more money. It can become a run-away situation given the right circumstances.

 

[JeffKeryk]

Yes, but it can also be abused given the right circumstances, just like seen with the big inflation surge and most likely with the tariff surge and everyone jumping on the tariff train just for the capitalistic opportunity to make more money. That makes people pay more money so they can make more money. It can become a run-away situation given the right circumstances.

Capitalism is about winners and losers. I am worried about the tariffs, but it is what it is.

 

[demarpaint]

I have a feeling Mexico and Canada are going to cave in pretty fast. It's still too early to tell what China will do, but I think there will be some pain early on and things will get better. Sit tight.

 

[Pablo]

I have a feeling Mexico and Canada are going to cave in pretty fast. It's still too early to tell what China will do, but I think there will be some pain early on and things will get better. Sit tight.

Hearsay in this border town the crackdown has started. Canada definitely is not the prime offender Mexico has been for so many years.

 

[demarpaint]

Hearsay in this border town the crackdown has started. Canada definitely is not the prime offender Mexico has been for so many years.

I agree. There's going to be a little pain, but the outcome should be OK imo. As always time will tell.

 

[Cropduster172]

I have a wealth manager not a financial consultant. I don't care about the individual stocks.