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US firms reportedly face higher costs and limited alternatives to Chinese-made parts

A post citing CNN says Kopin's shift of some microdisplay production to the US cost around 25% more.

BarrettBA
1 Source, 1d ago, first seen 1d ago

TLDR

A post citing a CNN report says Chef Robotics tried to move production of some parts out of China after tariffs rose, but US costs were too high and many suppliers elsewhere could not handle its order. The post says Kopin spent more than two years shifting some microdisplay production to the US, where it costs around 25% more. The poster argues that consumers will ultimately pay more.

Combined views

15.9K

1 Source, first seen 1d ago

322 likes26 comments49 saves67 reposts

Combined views

15.9K

1 Source, first seen 1d ago

322 likes26 comments49 saves67 reposts

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Sentiment

Positive——Negative

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1 Source

Barrett@BarrettYouTubeThe US wants to cut China out of its supply chains. But there's one rather big problem — American companies are discovering they simply can't replace what China makes. And it's not Chinese media saying this. It's CNN. A recent report from America's own flagship network spelled out what happens when Washington tries to cut China out of the supply chain: US robotics firms can't get the parts they need, American machine shops are telling startups "we can't make this," and the bill is landing on businesses, universities and ordinary consumers. Take Chef Robotics in San Francisco. After the tariffs went up, the founder tried to move production of some parts out of China. US costs were through the roof, and most suppliers outside China simply couldn't handle the order. Now investors are asking him why he's still using foreign parts. What exactly is he supposed to use instead? Kopin, which makes drone optics for the US military, spent more than two years moving part of its microdisplay production home. It now costs around 25% more. And China turns out more of those displays in a week than the US makes in a year. At the University of Illinois, an engineering professor reckons replacing the Chinese humanoid robots used in his courses could cost ten times as much, if a replacement even exists. Meanwhile the ban list just keeps growing. Humanoid robots, power inverters, drones, cars with Chinese parts. Even robot vacuums, pool cleaners and lawnmowers. One founder summed it up nicely: by the time an American company builds its first prototype, a Chinese company might already be on version three. You can't ban your way to being competitive. And in the end, it's American consumers who'll be paying for it.1d
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    1 Source

    Barrett@BarrettYouTubeThe US wants to cut China out of its supply chains. But there's one rather big problem — American companies are discovering they simply can't replace what China makes. And it's not Chinese media saying this. It's CNN. A recent report from America's own flagship network spelled out what happens when Washington tries to cut China out of the supply chain: US robotics firms can't get the parts they need, American machine shops are telling startups "we can't make this," and the bill is landing on businesses, universities and ordinary consumers. Take Chef Robotics in San Francisco. After the tariffs went up, the founder tried to move production of some parts out of China. US costs were through the roof, and most suppliers outside China simply couldn't handle the order. Now investors are asking him why he's still using foreign parts. What exactly is he supposed to use instead? Kopin, which makes drone optics for the US military, spent more than two years moving part of its microdisplay production home. It now costs around 25% more. And China turns out more of those displays in a week than the US makes in a year. At the University of Illinois, an engineering professor reckons replacing the Chinese humanoid robots used in his courses could cost ten times as much, if a replacement even exists. Meanwhile the ban list just keeps growing. Humanoid robots, power inverters, drones, cars with Chinese parts. Even robot vacuums, pool cleaners and lawnmowers. One founder summed it up nicely: by the time an American company builds its first prototype, a Chinese company might already be on version three. You can't ban your way to being competitive. And in the end, it's American consumers who'll be paying for it.1d
    Today's Rank

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    Today's Rank

    #14