White House in Talks With Intel, TSMC to Build U.S. Chip Foundries

· Andrew Orr · Link

The white house

Officials at the White House are reportedly in talks with Intel and TSMC to build semiconductor facilities in the United States.

U.S. tech companies and the government have been trying to reduce the country’s dependence on chip factories in Asia for years, underscored by national security concerns […]

In an April 28 letter obtained by the WSJ, Intel CEO Bob Swan told Defense Department that the company is willing to build a commercial foundry in partnership with the Pentagon “given the uncertainty created by the current geopolitical situation.”

The newspaper reports that TSMC has been in talks with Commerce and Defense department officials and Apple, one of the biggest clients, about building a semiconductor factory in the U.S.

Corporations have spent the last 30 or so years moving manufacturing to China in search of cheap labor. Did they not expect China to start competing with them?

Ming-Chi-Kuo Says Coronavirus Threatens Apple

· Andrew Orr · News

People wearing masks and using their smartphones.

Apple supply chain analyst Ming-Chi-Kuo says that the Coronavirus is a threat to Apple’s business since much of it is based on China.

Apple Involved in TSMC Patent Lawsuit

· Andrew Orr · News

GlobalFoundries accused TSMC of patent infringement involving 16 patents. Apple is cited in three of them.

Vietnam Might Be the Next iPhone Manufacturing Center

· Andrew Orr · Link

Due to the trade war between the United States and China, companies are looking to put their eggs into more baskets. Vietnam could be one of them.

Apple has homed in on Vietnam and India as it intensifies its search for ways to diversify its supply chain. Nintendo has accelerated a shift in the production of its Switch console to Vietnam from China, according to Panjiva, a supply chain research firm. The Taiwanese electronics behemoth Foxconn, a major assembler of iPhones, said in January that it had acquired land-use rights in Vietnam and had pumped $200 million into an Indian subsidiary. Other Taiwanese and Chinese partners to Apple have indicated that they are considering ramping up operations in Vietnam as well.

iPhone and the US-China Trade War

· Andrew Orr · Link

Jason Dedrick, Greg Linden, and Kenneth L. Kraemer broke down the cost of the iPhone and showed how China doesn’t get as much value from iPhone exports as we think.

So what about all of those famous factories in China with millions of workers making iPhones? The companies that own those factories, including Foxconn, are all based in Taiwan. Of the factory-cost estimate of $237.45 from IHS Markit at the time the iPhone 7 was released in late 2016, we calculate that all that’s earned in China is about $8.46, or 3.6% of the total. That includes a battery supplied by a Chinese company and the labor used for assembly.