, Ohio, fleets of dump trucks and bulldozers are shifting earth on the future site of chip factories. Intel is building two “fabs” there at a cost of around $20bn. In March President Joe Biden called this expanse of dirt a “field of dreams” in his state-of-the-union speech. It was “the ground on which America’s future will be built”, he intoned.
The chip industry is notoriously cyclical at the best of times: the new capacity built in response to rising demand takes several years to materialise, by which time the demand is no longer white-hot. In America this cycle is now being turbocharged by the government.
The supply glut and sputtering demand is already hitting prices. The cost of memory chips is down by two-fifths in the past year, according to Future Horizons, a research firm. The price of logic chips, which process data and are less commoditised than memory chips, is down by 3% in the same period
They r shooting their own foot by containing China in extreme dirty ways.
Stop telling porkies and blatant lies. US ban chips to China who buys 60% of all chips produced. Western media should be banned. In Pakistan 40 million people protested on 10th April & 35k gas canisters fired at public no sign of western media, dead like my cat named biden.
You are equating the health of domestic chip manufacturing with market cap paper value in a bear market for electronics? 🤔 Did you hire Politico writers?
Joe is like you suggest. A melt down.
Extremely shortsighted article. Author doesn’t seem to grasp the lag time to get these facilities constructed, and short term supply chain versus long term demand.
The US chips sanctions on CHN are dumb. CHN is the world's largest chips & the sharp increase in local chips output & drop in imports of foreign chips means that local Cos are upping deamericanisation as the US is not a reliable supplier as politics come before economics.
Thank democracy. Under technocracy the economy wouldn’t have been overstimulated by an unnecessary round of $1400 stimulus checks. The record high inflation that’s forcing the Fed to choke out the economy would’ve never existed. Whenever money can buy votes, money will buy votes.