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Technology Stocks : Applied Materials No-Politics Thread (AMAT)
AMAT 223.37-3.2%3:59 PM EST
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To: Sam Citron who wrote (7456)10/8/2003 4:21:31 PM
From: Bookdon  Read Replies (2) of 25522
 
I don't believe that fab line labor costs are a significant factor in moving fabs to Asia. It is really the reduced cost of safety/environmental issues. Silicon Valley (CA) has hobbled a lot of fabs in this regard. To date, these have often been offset by complications with financing and (in certain countries) government red tape (sometimes US export rules).
Manual operations (in the place of automation) in fabs hit yields, and low yields drive up costs. Labor costs can hardly be low enough to balance this.
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