[websg-x]

Huawei start buying huge amount of chips when there was rumor that US going to imposed sanctions on Huawei, and when the sanction hits, every major chips users in China start buying too, they were afraid that they will be next on sanction lists. They kept buying chips to build up safe inventory level during the early pandemic period when western firms were cutting orders.

Of course, when demands returned, Chinese companies were still on buying spree. The shrewd middleman everywhere, not just in China, saw shortage coming, and they stock piling chips too.

Yeah, most semi-industry people in Taiwan think that US sanctions and the threat to impose more sanctions definitely contribute to the current shortage.

[adamc]

The US probably needs to view chips as a national security issue and proceed accordingly... meaning, move more manufacturing here.

It will raise prices and hurt the economy, probably, so I can understand the reluctance. Nothing is easy.

[csense]

Not necessarily.

What's better: A $1000 iPhone made in China that Americans can't afford because their jobs were globalized to China, or a $2000 iPhone made in USA that Americans can afford because they work in the iPhone factory or live in communities that are supported by it?