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Xeronate | 1 year ago

I read the main problem with hiring chip factory workers in Arizona was the factory just didnt pay enough for the long hours demanded. I looked up the median salary and its only 50k so I'm assuming it's not crazy skilled labor (e.g. brain drain). Taiwanese workers just seem more willing to do it.

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IshKebab|1 year ago

I spoke to a Taiwanese person and apparently the salaries there are actually quite good, even by western standards (normal ones; not SF). The downside is they have very very long hours (996, barely any holiday, etc.).

jonas21|1 year ago

It's also highly-skilled, yet very boring work. The way it was described to me is that every major piece of equipment has a PhD assigned to it and their job is basically to babysit the machine and troubleshoot when things go wrong.

US PhDs typically have other options and would consider this sort of work a waste of their time.

kkylin|1 year ago

Not just long hours right? Speaking to Taiwanese friends involved in semiconductor work (not TSMC employees though) it's the shift work that's really hard to manage in the US.

johnnyanmac|1 year ago

50k is/was recently a decent salary (not SF). In the last 5 years, not so much anywhere outside the absolute lowest CoL areas.

But yes, most Americans do not want to work on a death march. And employers don't want to pay it. I doubt they can argue 50k as exempt so that's a lot of overtime. They may as well be salaried 6 figures at that point.

867-5309|1 year ago

996..? doesn't fit into weeks, months or years

bluGill|1 year ago

50k is just a step above McDonalds these days in a lot of areas. Sure minimum wage might be $15k, but realistically nobody pays that little except in very rural areas (if you need a small number of low skilled employees a small rural town is a perfect spot to build - but if you need more than a small number they can't provide more at any price - you will pay more in the city but there are a lot more people around if you need more)

somanyphotons|1 year ago

McDonalds in Sunnyvale CA starts at 20/h, so 41k/year for the lowest role

gjsman-1000|1 year ago

Perhaps - in California.

Median US Salary is $59,384. Half of workers make less.

rkagerer|1 year ago

...just seem more willing to do it

That's why manufacturing offshored in the first place, companies feel they're receiving better value for money on wages elsewhere for this kind of work (and these days not to mention more & larger facilities, proximity to component sources, and a strong ecosystem of supporting and complimentary facilities).

Teever|1 year ago

I think that's obviously a major part of it but it ignores other stuff like lax environmental and safety standards.

It would be interesting to see how much of the economic advantage of off-shoring is due to lower wages due intrinsic to lower cost of living vs stuff like ignoring/bribing foreign officials or non-existent environmenta/safety standards that objectively should exist.

hintymad|1 year ago

Personally I won't mind paying more to buy manufactured goods. My mom told me that a pair of sneakers before the offshoring back in the late 80s usually cost more than $300 in today's dollars. Yes, it was expensive, but I would just buy fewer and use the one for longer time. The reason is that in the long run the manufacturing cost would get lower due to increased efficiency, and loss of supply chain is detrimental to the entire country - and our living expenses will increase overall. Case in point, how much tax do we have to pay and how much inflation do we have to suffer in order to build those super expensive weapons? Part of the reasons that we had $20K toilet and $100 screws is that we simply don't have large enough supply chain to offset the cost of customized manufacturing.

Besides, the US loses know-how on manufacturing, eliminating potentially hundreds of thousands of high-paying engineering jobs - it will also be a pipe dream that we can keep the so-called high-end jobs by sitting in an office drawing boxes all day. Sooner or later, those who work with the actual manufacturing processes on the factor floor will out compete us and grab our the cushy "design" jobs.

johnnyanmac|1 year ago

Easy to get better value on wages when you get to pay under the minimum wage of your home country. And/or aren't required to offer benefits, vacation. And are able to work them twice as long without overtime pay. And don't need to care about child labor laws.

To be blunt: yes, slavery is cheap, isn't it?

byw|1 year ago

Cost of living can be a lot lower in Taiwan, if your property is already paid off.

Unfortunately housing is super overpriced, due to the Asian mentality resulting in high property ownership.

Real estate is always the monkey wrench in the gears of capitalism because of high necessity yet limited supply.

bugglebeetle|1 year ago

> Unfortunately housing is super overpriced, due to the Asian mentality resulting in high property ownership.

I have no clue what this means and in countries like Japan, housing is a depreciating asset vs. an investment, so…?

AnthonyMouse|1 year ago

> Real estate is always the monkey wrench in the gears of capitalism because of high necessity yet limited supply.

This only happens when the government becomes captured by land owners to constrain the supply, since otherwise you can build up. But governments getting captured by land owners happens a lot.