Comment by epicureanideal
Comment by epicureanideal 4 days ago
> STEM field gap
STEM salary gap
I suspect the Taiwan workers have on average much lower salaries.
Comment by epicureanideal 4 days ago
> STEM field gap
STEM salary gap
I suspect the Taiwan workers have on average much lower salaries.
Such a great victory for American industry... the future is to bring workers from Taiwan with skills and willingness to receive a fraction of US salaries.
What are your realistic options?
Say TSMC pays supper competitive US salaries to attract US-only labor, higher labor cost which is causing the end product to be more expensive, which makes that fab uncompetitive globally causing Apple to go buying from someone else and TSMC either choosing leaving the US or going bust eating the losses.
You can't compete with lower-wage countries in a globalized world with no trade barriers and no tariffs, when Apple wants higher profits and consumers want lower prices. Something has to give.
You can put tariffs on imported chips to equalize the field, but then iPhones would be more expensive for the average American and Apple's stock would tank.
So, pick your poison.
The problem was never the cost of labor. US tech is already highly profitable and they can pay the full salary if they wish to. But their desire is basically to get a free card to pay lower salaries by any means, so they can send more of those profits to shareholders. The US is essentially a fighting arena between shareholders and workers. The profit is there, it is just a matter of how business want to keep always more of the spoils to themselves.
> You can't compete with lower-wage countries in a globalized world with no trade barriers
I think you’ve correctly identified the solutions.
This solves for the US national security issue; in the event of war between China and Taiwan (and a possible proxy war with US), Taiwan immigration would qualify for asylum.
OK. Cards on the table.
This is not arrogance. This is not even about China and Taiwan fighting a war. (Heck, that's probably never gonna happen anyway.)
This is about the US manufacturing important things on our own. And it's not just the US either by the way. The Europeans want to be able to manufacture their own chips. The Russians. The Chinese. The Japanese. The Koreans. And on and on and on.
Why? Because the current system is dumb for everyone who is not Taiwan. For a whole lot of reasons. (Most of them economic.) No one wants to say that out loud, but it's the truth. We can't have everyone dependent on chips but only one nation capable of making them. Again, we're not the only ones who have come to this conclusion. Are the Chinese also "arrogant"? Are the Japanese "arrogant"? The Europeans? The Russians? Are the Koreans "arrogant"?
So everyone else can make common sense moves, but it's "arrogant" if the US does the same common sense thing? So we should just keep paying out an increasing share of our GDP as chips become more and more important and expensive while everyone else makes moves to cut their costs right? Is that what we have to do to be considered not "arrogant"?
People need to be a bit more reasonable.
Would that be the thing that Trump says he wants to stop on day one? Those asylum-seekers? The Trump who is inviting Xi to his inauguration?
How much does salary contribute to the overall cost of operating TSMC? Perplexity said that the average salary of a TSMC employee is $76K a year, and TSMC had about 80K people. So it cost them around $6B a year on salary. In the meantime, their operational cost was about $46B a year, so that's 13%. TSMC shipped about 16 million 12-in wafers. Each 12-inch wafer can make about 300 to 400 chips. Let's say 200 to stay on the conservative side. That will be 3.2B chips a year. That means the cost per chip on salary will be less than $2 a year. It looks HC cost is not that dominant?
Yes, roughly speaking 1:4 compared to California.
Edit: This is not news. This (combined with their higher EE education) is why Taiwan won IBM PC-clone-related manufacturing in the 80s. And why they now have TSMC.