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diverdog
5/13/2013, 06:09 AM
BUSINESS | 5/12/2013 @ 10:44AM |57,901 views
If You Trust The American Press, Here's A Thought Experiment



The U.S. Defense Science Board’s report High Performance Microchip Supply ranks as probably the most devastating ever account of the speed and extent of American decline. Why therefore has it been completely overlooked, or should I say suppressed, by America’s mainstream media?


As I pointed out last week, the report, issued as far back as 2005, documented the transfer abroad — mainly to East Asia – of most of the U.S. semiconductor industry’s key capabilities and technologies. The Defense Science Board, which is funded by the Pentagon, was particularly concerned about the fear, now widely prevalent in U.S. defense circles, that so-called malware could be hidden in the circuitry of foreign-sourced semiconductors only to be activated at the last minute. Among other things, this could give a hostile foreign power control of American missiles in flight – with highly alarming implications for where those missiles might land.


The board summed up its findings with this chilling comment: “The potential effects of this restructuring are so perverse and far-reaching and have such opportunities for mischief that, had the United States not significantly contributed to this migration, it would have been considered a major triumph of an adversary nation’s strategy to undermine U.S. military capabilities.”


As a thought experiment, try searching for the quote above in any of the mainstream media, and you’ll see what I mean: total radio silence. Nothing in the Washington Post or New York Times. The Wall Street Journal and Fox News, the two most influential media properties of Rupert Murdoch’s News Corporation, seem also to have missed the story – this despite the fact that, even compared to the rest of the American press, Murdoch’s chicken hawk editors are notorious for sending American troops into harm’s way in pursuit of harebrained military objectives.


Why would a story like this be suppressed? Editors seem to think that support for free trade ideology should trump their duty to tell the truth. The ironic thing is that even the textbook version of free trade specifies an exception where a nation’s military security might be compromised.


What is undeniable is that the American press consistently avoids printing things that might focus attention on the hollowing out of America’s most advanced manufacturing industries. If you don’t believe this, try this further thought experiment: check what the media have said about the course of America’s trade deficits in recent decades. The current account deficits are up more than fourfold since 1989, a year of peak popular angst about the hollowing out of America. Hell will freeze over before the Murdoch media will publish a fact like this.


For anyone with the stamina to take a really good look at how ill-served Americans are by their media, I recommend a major article recently by Ron Unz, publisher of the American Conservative. Unz takes a while to warm up but his critique is one of the best I have ever read. It can be accessed here. (Full disclosure: Though I have never met or even corresponded with Ron Unz, I occasionally contribute to his magazine.)

olevetonahill
5/13/2013, 06:10 AM
****ing Bush,

cleller
5/13/2013, 07:07 AM
****ing Bush,

Yep, first Benghazi, now this. He's part of that illuminati.

olevetonahill
5/13/2013, 07:09 AM
Yep, first Benghazi, now this. He's part of that illuminati.

Im just plum ashamed I voted fer him , Twice,:star:

diverdog
5/13/2013, 10:11 AM
Where did they mention Bush? The article is from Forbes, hardly a bastion of liberal thought.

KantoSooner
5/13/2013, 11:19 AM
Diver, I won't argue in favor of the press who I essentially despise as lazy lemmings who've found sugar teats and are hanging on for dear life.
What I will argue is the microchip report itself. While it is true that the vast bulk of microchip manufacturing was offshored (mostly to Taiwan (not a hotbed of Anti-American activity) for logic chips (the so-called foundries - TSMC, UMC etc) and South Korea (again not too Anti-American) for memory chips (Samsung, and LG mostly) and to a lesser extent to Singapore and Malaysia and to a very small extent to China, the US retains several key components to the industry.

First, US makers of high end logic devices, including military production, are Texas Instruments, Motorola, Intel and AMD. All maintain extensive facilities in the continental US. Military chips themselves, while they drove the birth of the industry in the 1960's and 1970's are a miniscule portion of total production. A single 'fab' for any of the above four makers could supply their total demand for military oriented chips in a matter of several days' production.

Second, the key item in the making of a chip is the photomask used to replicate the circuitry on the silicon (or more appropriately the 3-5 compounds more typically used in mil chips due to the slightly higher speed of conductance and the natural resistance to electromagnetic pulse. You wouldn't want your toys to all go bonkers if someone were nasty enough to detonate a nuclear device while they were in flight, now would you?) It is not cheap, but replacement mask sets could easily enough be stocked in a location here in the US to move into production in case of sabotage.

Third, the raw materials, the wafers on which the circuitry is printed or grown are also produced in sufficient quantity here in the US. We are not vulnerable to supply interruption.

Fourth, the critical equipment used to make the chips is largely available domestically. Applied Materials et al are US companies and make most of their high end stuff here at home. Two key exceptions: Photolith Steppers. The best are made in Holland and in Japan. Our one maker is a trailing edge company. But we have enough units here to cover us for a period of a few years in a pinch. (These tools cost $30 mill and up and take a year or so to build after the order is placed, the optics are phenomenal.) And robots. The best of these are made in Japan and Switzerland. I am not sure whether there is a US maker of the requisite quality left.

There is reason to keep an eye on chip supply for military use, but not a real reason to worry. At least not yet.