Stratechery American Disruption
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Apr 9, 2025 The discussion kicks off with a critique of oversimplified narratives surrounding U.S. technology and trade policies. The spotlight shifts to how smaller firms challenge major players in semiconductor manufacturing by targeting overlooked customer needs. The conversation delves into the move towards modular designs, enhancing speed and customization in product development. Job creation dynamics in manufacturing reveal the challenges of attracting workers. Finally, the complex ties between Apple and Chinese manufacturers illustrate the delicate balance necessary in global supply chains amid changing trade wars.
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Disruption of American Manufacturing
- American manufacturing has been disrupted, mirroring Clayton Christensen's theory.
- Smaller, resource-constrained Asian manufacturers successfully challenged established U.S. businesses.
Silicon Valley and Asia
- Chip manufacturing began in Silicon Valley but assembly and testing moved to Asia due to lower labor costs.
- U.S. companies retained the innovative, high-margin chip fabrication process.
Globalization's Transformation
- Three technological advancements transformed globalization: jet airliners, trans-Pacific cables, and standardized shipping containers.
- These enabled multinational corporations to design products domestically and manufacture them in lower-wage countries like those in Asia.
