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this post was submitted on 16 Jun 2024
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I'm adjacent to the industry. This is dumb but I understand the reasoning. We're getting left behind in the electronics world. Nobody is creating hardware startups because every few months there's a viral blog post with a "hardware is hard" title on HN and none of the VC assholes want to fund anything but web based surveillance capitalism ad tech because it's a surefire way to make money. Even if you do get funded and you're US based you're absolutely doing all your manufacturing in China if you're remotely consumer facing (b2big-b has different rules). That means Chinese companies get all the benefits of all the labor from your highly trained engineers when they get the design files. If you try to build anything at volume in the US you have strikingly few options for boards and parts. Everything is whole number multiples of fucking PCBway and half the time it's lower quality unless you're paying aero-defense prices which is the only business anyone wants.
But why do we need to build stuff here? If it's cheaper elsewhere, let them build it and we'll do the higher paying work.
I guess there are national security concerns, but that sounds like we just need to make more friends and fewer enemies, as well as have redundancy in our supply chain (i.e. invest in other inexpensive labor markets, like LATAM, Africa, and India). The issue isn't that the US isn't making it, it's that China is making most of it. Diversify and the problem mostly goes away.
Without a foundation, you have no foundation.
Effectively, China has been acquiring a monopoly on manufacturing, which is an absolute necessity for modern life. We have been acquiring the higher-paid, but less numerous and less critical industries.
Sure, but it doesn't need to happen here. If we get into a WW3 situation, we need to be able to protect our supply lines, and that can happen with friendly countries. We're unlikely to get into a situation where our navy is outmatched, so I don't think it's totally urgent to bring production back here.
That said, we do have a lot of critical manufacturing capacity. Intel has chip fabs, we produce lots of oil, we build cars, etc. We import a lot more than we used to, but we could probably make it through a major war with only domestic production, provided it doesn't drag on too long until we can reestablish supply lines.
I'll only get worried when China catches up in tech. That's certainly happening faster than I'd like, but I don't think China is ready to compete head to head on tech just yet. If they're at parity, that's when we need to worry about domestic production. Ideally we can improve diplomatic ties by then.