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The Chip Ban Seven Months Later, China's Response, More on Intel and Tower Semiconductor

Sharp Tech with Ben Thompson

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The Pros and Cons of Outsourcing of Chips

Allen: Is there any reason we shouldn't be using chips act money to build fabs in countries that have fewer security risks than Taiwan on the one hand, but also fewer regulatory hurdles and better cost structures than the United States? Allen: The fact that chips are globalized wasn't explicit choice by the US. It just costs a lot more to build here. Getting labor to do the building is more expensive. I mean, you know, Taiwan, it's a bunch of important layers of Southeast Asia that's building short of the fabs. And so, so there's an aspect where there's always been cheap little concerns as far as the outsourcing of chips.

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