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Arnold Kling: How Economics Starts with Specialization

From the New World

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The Dangers of Specialization in Semiconductor Manufacturing

There has been this extreme concentration of semiconductor manufacturing in Taiwan and TSMC. It's created basically a single point bottleneck that is very geopolitically dangerous and economically dangerous as well. Well, I guess it depends on how long it takes to kind of replace, find an alternative in terms of human and physical capital. But I would tend to bet the under that if Taiwan got taken off a line that it wouldn't be years and years before alternatives came on.

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