But it's hard to imagine setting up a fab in cities where I experienced pollution worse than any time in my life. You'd almost have to build a Biosphere 3 just in which to set up a clean room that would meet the necessary standards. Also concerning the necessary infrastructure, there's already a severe shortage of electricity generating capacity, which the upcoming Three Gorges Dam will alleviate somewhat, and semiconductor fabs need generous amounts of juice. Our tour guides made sure we had no exposure to such aspects, which never came up in conversation. The report goes on to say that endemic corruption is arguably the most serious problem facing China today.
Surveys show it has surpassed unemployment as the top concern of the Chinese public.
If China can avoid such problems, I believe its people will drive the country to develop as a market for our semiconductors moreso than develop as a competitive threat. I must admit, though, that things have changed extremely rapidly in the last decade, and the situation could look far different in another ten years. I look forward to the opportunity to check it out.