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Interos Insight: As the semiconductor shortage goes on, companies like Micron are evaluating their business model, including the physical locations where their products are made. Countries like the United States have begun creating location-based tax incentives, an about-face after ignoring on-shoring semiconductor production for decades due the high cost. However, Micron notes they expect that production costs in the United States will be 35% to 45% higher than elsewhere. While geographic location is important, Interos’ data connections suggest that most, if not all, semiconductor supply chains are connected to each other. This indicates that although capacity is expanding within industry, it will take more than one company’s investment in capacity to solve the supply and demand problem. |
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