My working hypothesis is that the US also needs to cultivate more high volume products (like the Tesla M3 and Y) to be assembled domestically.
Without these, is there an incentive for suppliers (and their suppliers) to build capacity domestically?
That the iPod/dumbphones and later the iPhone were assembled in China accelerated the strength their supply chain nodes and connections. And even reading that Reuters piece today, a larger portion of iPhones/smartphones are made by Chinese domestic competitors to chip and other component suppliers.
A less pronounced version of this has also happened with GigaShanghai.
So yes industrial foundations are important, but the US also needs to focus on fostering the industries where it is viable to build the world's highest volume and automation factories there.
My working hypothesis is that the US also needs to cultivate more high volume products (like the Tesla M3 and Y) to be assembled domestically.
Without these, is there an incentive for suppliers (and their suppliers) to build capacity domestically?
That the iPod/dumbphones and later the iPhone were assembled in China accelerated the strength their supply chain nodes and connections. And even reading that Reuters piece today, a larger portion of iPhones/smartphones are made by Chinese domestic competitors to chip and other component suppliers.
A less pronounced version of this has also happened with GigaShanghai.
So yes industrial foundations are important, but the US also needs to focus on fostering the industries where it is viable to build the world's highest volume and automation factories there.
Very well put. I agree.