Intel and the $1.5trn chip industry meltdown

, 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

That is why US chips stocks have dropped a lot but many Chinese chips stocks have actually gone up. Investors are a lot smarter than Tai, Raimondo & others in Biden's economics team.

We have been in a prison called the Islamic Republic for 43 years and our protest is not heard... They have people who tell the world that the situation in Iran is good, while we hate the Islamic Republic and do not want them. They rape and kill us all Mahsa_Amini مهسا_امینی

Bloody Americans! Stopping chips going to China!

Which mean no more production of electronic and hi tech items are produced.? No one knows the future. Humans always invent new things for new demands.

This does not illustrate the actual damage and danger to to the US economy and defense by relying on Chinese micro chips. They have us by the throat basically. How short sited can you get?

I love chips.

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The American chip industry’s $1.5trn meltdownThank the boom-and-bust cycle—and America’s government 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. 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. 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.
Source: TheEconomist - 🏆 6. / 92 Read more »

The American chip industry’s $1.5trn meltdownThank the boom-and-bust cycle—and America’s government 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. 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. 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.
Source: TheEconomist - 🏆 6. / 92 Read more »