Forum Discussion
wnjj
Dec 16, 2021Explorer II
ItsyRV wrote:
What I don't understand is why we have so much excess chip manufacturing capacity sitting idle here in the USA?
It seems every time we hear of a chip shortage, suddenly these US based manufactures produce all sorts of plans to turn on production at these idle plants IF the government would just throw in some money. I would think demand is high enough to make producing chips in the US profitable. Or is this just another run on tax payer money to build a plant that isn't really needed?
(I think those of you in AZ, NV and TX knows what I'm talking about with those idle taxpayer funded chip plants)
The simple explanation is that chip manufacturing foundries are not interchangeable. They are purpose-built for a specific technology. Converting chip designs from one technology to another takes months to years.
Also, some automotive chips are built on older technology and it would take an awful lot of incentive to build capacity for an otherwise outdated technology.
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