Money pours into new fabs and facilities
Massive investments in new semiconductor fabs are prompting debate over whether the U.S. can realistically rebuild a broader manufacturing ecosystem at home. Commenters contrast America’s high rents, zoning rules, private equity–driven real estate, IP culture, and education issues with Shenzhen-style dense, flexible electronics supply chains, arguing that onshoring a few chip plants won’t replicate China’s speed and cost advantages. Others note that U.S. manufacturing output remains high in dollar terms but is less visible to consumers, and suggest that meaningful reshoring would require policy shifts—from tariffs and subsidies to IP reform—alongside deep changes in labor, training, and urban design.
Reshoring Fabs vs. Broader Manufacturing
- Many argue new US fabs are strategically important (security, war/cold-war resilience) but do not imply a broad return of manufacturing.
- Others note US manufacturing output (in dollars) is at or near all-time highs; what declined is employment share and visibility in everyday consumer goods.
- Critics counter that dollar figures ignore inflation and per‑capita stagnation, and don’t reflect capability gaps in specific areas like electronics.
Shenzhen-Style Ecosystem and Local Constraints
- Multiple comments contrast US cities with Shenzhen’s dense, integrated electronics ecosystem: rapid PCB turnaround, parts availability, and cheap iteration.
- US barriers cited: high rents, parking minimums, zoning, private equity consolidation of industrial space, and lack of small, flexible units for makers.
- Some note similar decline of retail electronics in Europe and Japan’s relative success with dense, mixed-use, walkable neighborhoods that support small shops.
Economics of PCB & Electronics Production
- Several concrete price comparisons: domestic PCB runs can be ~5–8× (or more) the cost of Chinese fabs, even including fast DHL shipping.
- Chinese services like JLCPCB/PCBWay are praised for scale, automation, speed, and integrated PCB+assembly pipelines, not just low wages.
- Domestic houses are used mainly when IP, export controls, or in‑person collaboration matter; cost competitiveness is seen as unrealistic currently.
Policy, IP, and Industrial Strategy
- Proposed levers: shorter patent lifetimes (non‑pharma), “forking” rights on extended patents, tax breaks for royalty‑free domestic licensing, and IP safe-harbors for small firms.
- Others prefer high tariffs plus lower taxes, echoing early US industrialization, but note current industry is consolidated and finance-driven.
- Some view CHIPS and similar subsidies as corporate welfare that doesn’t fix deeper issues (education, workforce, land use).
Labor, Education, and Culture
- Concerns that US public schooling is failing in basic literacy, incompatible with fab work; others say the main issue is high-skill workers preferring higher-margin software/finance jobs.
- Cultural differences highlighted: China’s “shanzhai”/sharing orientation vs. US secrecy and heavy IP enforcement, perceived as slowing innovation.
Geopolitics and Supply Chain Security
- Comments tie onshoring to broader anti‑China strategies (e.g., “Clean Network”), China’s push for semiconductor self‑sufficiency, and potential Taiwan conflict.
- Some foresee continued fragmentation of global supply chains, with more regional hubs (US–Mexico–Canada, allied Asian countries) rather than a single Shenzhen-like center.