Comment by robertlagrant
12 days ago
> But the important question is - is it worth it? Should we be doing something more valuable instead?
It's hard to quantify. E.g. the CHIPS act is a strategic thing in case TSMC is disrupted for some reason. How valuable is insurance? How much useful work (and skill) do you ship overseas in exchange for promissory notes[0]?
[0] https://www.grumpy-economist.com/p/tariffs-saving-and-invest...
> E.g. the CHIPS act is a strategic thing in case TSMC is disrupted for some reason. How valuable is insurance?
What do you think the odds are that the CHIPS act will make the US capable of building TSMC-level chips?
Calculating the value of an insurance isn't complex. First, you calculate (1) the cost of the insurance, then (2) a rough idea of the probability that you'll need it, and (3) the cost of the insured-against-event occurring.
The problem here is that no one in their right mind believes the CHIPS act will make the US capable of producing chips on par with those of TSMC, so it's not actually an insurance. More like a political show — see, we doing something!