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IPFS News Link • Supply Chain Disruption

New World Order

• https://www.nextbigfuture.com, by Brian Wang

There is potential for societal unrest in China with mass protests over Covid Zero and other policies. If you are maintaining a factory in China, you would want that factory to service the local China market. You would factories in other places to service other markets.

It no longer makes sense to save on costs with China is the only location for global factories. Apple has nearly all of its iPhone and other products made in China and exported globally. The China export hub strategy is too risky.

Business risk mitigation means that companies like Apple are making other factories in Vietnam and other locations outside of China.

National interests like military and security concerns means governments are requiring critical parts of the supply chain to be localized inside the country or spread out in multiple locations where a national crisis would not cripple key capabilities. This was the case where the USA required Taiwan Semiconductor to make new semiconductor chip factories in Arizona. The US also made massive investments in Intel to get Intel back into the semiconductor game.


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