U.S. mulls paying companies, tax breaks to pull supply chains from China

Re:U.S. mulls paying companies, tax breaks to pull supply ch... by Fjolsvith on Wednesday May 20, 2020 @10:33AM (#23247270)

When China uses the threat of cutting off supply chains to a country [1] in order to advance their own political agenda, that country should obviously protect their own national security by moving their supply chains.

Edit: Additionally, other countries should take note and protect their interests also.

1. https://www.taiwannews.com.tw/en/news/3925556

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Re:U.S. mulls paying companies, tax breaks to pull supply ch... by ScalaFan on Wednesday May 20, 2020 @12:01PM (#23248457)

All corporations should follow the idea of not putting all their eggs in one basket even if that is the cheapest/best idea if you want to over-optimize.

In IT, we have backup plans, we have backup locations and resources and yes it costs money to keep such options available. Global companies need backup countries and suppliers that can supply what they need should something happen to the main supplier/country. It doesn't have to be full equivalents in capacity but should be possible to scale eventually.

Having backups and alternatives reduces the likelihood and effectiveness of explicit threats by your main location.

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Re:U.S. mulls paying companies, tax breaks to pull supply ch... by colejohnson66 on Wednesday May 20, 2020 @09:17PM (#23253920)

In the “old days,” ICs used to be dually sourced. For example, Intel created and manufactured the 8086, but AMD also manufactured them. Not a perfect solution, but better than one single manufacturer. Sadly, one can’t really do that now because of how small the features on chips are getting.

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