Tech
Why The U.S. Fell Behind In Phone Manufacturing
Made in China. It’s a common phrase known by many. Cell phones, TV screens and game consoles are just some of the millions of electronics manufactured and imported from China to the U.S. daily. China has controlled the smartphone manufacturing market for years. While some industries, like the semiconductor industry and the EV battery market, are scrambling to build new factories across the U.S., tech giants like Apple and Google are not making the same effort to do that. CNBC explores why tech giants produce phones abroad and whether it makes sense to move production to America. And CNBC visits one company, Purism, at its Carlsbad, California factory to take a look inside the only smartphone manufacturing facility in the U.S. to learn what it takes to build phones in America.
Produced by: Sydney Boyo
Supervising Producer: Jeniece Pettitt
Additional Camera: Andrew Evers, Katie Brigham
Editorial Support: Katie Tarasov
Graphics by: Josh Kalven
Chapters:
0:00 Introduction
1:12 Big Tech favors China
6:00 Challenges of reshoring
11:39 Is America ready?
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Why The U.S. Fell Behind In Phone Manufacturing
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AI data centers are driving unprecedented demand for electricity and putting renewed pressure on America’s power grid to modernize its equipment and develop greener, more efficient sources of power. Google, Meta, Microsoft and Amazon are all spending millions of dollars on local infrastructure upgrades and companies like SpaceXAI are even building off-grid power plants to power their data centers.
Google says its planned 780-megawatt data center in Pine Island, Minnesota, could offer a model for powering the AI boom. In a proposed agreement with Xcel Energy, Google says it will support 1,900 megawatts of new wind, solar and battery capacity, while minimum payments and exit fees are intended to protect local ratepayers if demand falls short.
CNBC examines whether projects like Pine Island can make the grid cleaner without shifting costs to existing customers, why some energy experts argue that smaller data centers could make better use of infrastructure already in place, and how utilities’ financial incentives can complicate efforts to build less.
Chapters:
0:00 – 2:06 Introduction
2:07 – 4:49 Off-grid solutions
4:50 – 9:00 Upgrading the grid
9:01 – 11:44 Smaller data centers
Produced by: Jeffrey Kopp
Senior Director of Video: Jeniece Pettitt
Tech Correspondent: MacKenzie Sigalos
Edited by: Erin Black, Matt Soto
Camera: Donny Rowles
Animation: Jason Reginato, Emily Park
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The Race To Power AI Is Reshaping America’s Electric Grid
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A leak by Indian supplier Tata Electronics, purportedly of the yet-to-be-released iPhone 18 Pro models, has become marketing gold for the Chinese government. The Communist Party paper, The Global Times, is using the leak – caused by a cyberattack – as a cautionary tale for Apple and other American companies that are in the process of diversifying their supply chains away from China. CNBC’s Eunice Yoon reports.
00:58 Correction: The location tag should be Beijing, China.
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About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Sign up now: https://cnb.cx/4sGlSkh
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China’s Swagger After India’s iPhone 18 Leak
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Unstoppable demand for AI is leading to a capacity crunch on factory lines at the world’s leading chip manufacturer, Taiwan Semiconductor. And it could put a chokehold on AI’s ability to scale. Analysts tell CNBC that Nvidia, Apple, Broadcom, AMD and others are locked in an “extremely fierce” competition to get their GPUs, CPUs and custom AI chips made at TSMC. Capacity can’t come online fast enough, despite TSMC’s rush to build new fabs in Taiwan, Japan and Arizona, where has expanded investment to $265 billion. The strain has made one man at TSMC “the most popular person on the planet,” as chip start-ups and big name CEOs visit Taiwan to ask him for wafer allocation. It’s also created a rich opportunity for Intel, as customers look to the long-struggling foundry arm of the U.S. chip manufacturer for a second source.
Chapters:
0:00 Introduction
2:06 ‘Most popular person on the planet’
6:54 Making room for smaller players
9:10 Can new U.S. fabs ease the crunch?
Producer and Reporter: Katie Tarasov
Edited by: Matt Soto, Andrew Evers
Camera: Eddie Temborski, Robert Lampe, Evan Reinhardt
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park
Additional Footage: Cerebras, D-Matrix, Getty Images, Intel, Nvidia, OpenAI, SpaceX, TSMC
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About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
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Why There’s An ‘Extremely Fierce’ Battle For TSMC’s Limited Chip Manufacturing Capacity
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@tonygaffner8126
December 18, 2023 at 7:31 pm
Yeah due to rules and regulations. Just like everything else
@JosephLee2012
December 18, 2023 at 7:31 pm
If you read between the lines, Tim Cook is saying that Americans are stupid and lazy.
@kingchrome5551
December 18, 2023 at 7:31 pm
Not saying the wage still isn't low and the hours aren't high but you also have to adjust the average wage to the cost of living. At one point rent was estimated to be 60% lower in china than in America.
@horridohobbies
December 18, 2023 at 7:31 pm
15:35 China was never a security threat. This was US paranoia and propaganda garbage.
@captainaxlerod1297
December 18, 2023 at 7:31 pm
Americans don't want to work
@healingbyqurannow
December 18, 2023 at 7:31 pm
Robotics can be deployed to increase efficiency and profit in the USA.
@thuydoan7496
December 18, 2023 at 7:31 pm
It all started in 2007 when Apple decided that it was cheaper to employ Chinese people to assemble iPhones. Tim Cook set up the Chinese factories himself so Apple can benefit from cheap Chinese labor. That is why America NEVER had a chance at the beginning.
@minixtvbox
December 18, 2023 at 7:31 pm
Reganomics
@stevencorbo1220
December 18, 2023 at 7:31 pm
Those are as much excuses as they are anything else has Apple built the infrastructure in China. China improved that infrastructure and became the market leader although tsmc the Taiwan based company is truly the leader
@stevencorbo1220
December 18, 2023 at 7:31 pm
Companies from the United States are what made China a threat as they didn't have the technology before we started producing our products there
@stevencorbo1220
December 18, 2023 at 7:31 pm
You can never oversee reduction correctly because things get stolen technology gets stolen when you do overseas production I miss something these idiots at Apple have never thought about it and don't understand
@daklakdigital3691
December 18, 2023 at 7:31 pm
Americans physical attributes (large fingers, etc) are unsuited for delicate work. Plus there are labour/employment laws.
@Kings_World2.0
December 18, 2023 at 7:31 pm
Its labor cost … point blank period. It's cringe to see them tip toe (Lie) around the topic
@johnd8281
December 18, 2023 at 7:31 pm
Labor cost is too high
@Morrphinne
December 18, 2023 at 7:31 pm
The response hold on only two letter…
@lokesh303101
December 18, 2023 at 7:31 pm
Because they got no efficient Printed Circuit Board Manufacturers and just you get you have the Displays.
@uyngor1536
December 18, 2023 at 7:31 pm
Made in USA with supply chain in China
@maxaj6116
December 18, 2023 at 7:31 pm
They make it better for cheaper
@DD-fs7pg
December 18, 2023 at 7:31 pm
Purism really doesn't have a leg to stand on. They're basically only here to advertise their product hoping to appeal to a wider audience that are unaware of their issues. For those unaware, Purism has been hit hard with claims of not delivering products and not processing/ignoring refunds. These issues are for Librem orders from 4-5 years ago and customers are still being strung along by Purism's customer support. I'm sure that their "commitment" for "Made in USA" is more of a marketing ploy than anything considering their obvious financial woes. I respect the ideas behind the product and company but it's obvious that their commitments fall short.
@MichaelMomany
December 18, 2023 at 7:31 pm
Give America 10 years and those assembly line workers will be replaced with intricate robots.
@jascam1
December 18, 2023 at 7:31 pm
Both Biden and DeSantis are just blowing smoke up the citizens tail, they both know that the USA cannot match China when it comes to manufacturing. The average high school dropout in the USA is expecting/demanding $15-20 an hour, while Chinese workers (or their proxies in Asia) will settle for $5 or less. Furthermore the Chinese workers are more disciplined and loyal. They will take one for the team for the greater good of the whole.
@lilblackfish2009
December 18, 2023 at 7:31 pm
when its made in US they wana charge a arm and a leg
@rarinkaz
December 18, 2023 at 7:31 pm
The typical american's attitude is just pay me so I can get out of here! Work…?! What's that? They wear ear buds and talk on the phone their whole work shift! And pittle around as much as possible! They put more thought into how to get out of work rather than do anything productive! And they always want and expect a raise! But 90% of the company's are just as guilty!
@manomano2524
December 18, 2023 at 7:31 pm
2000$ but still looks old and nothing new
@technoideas5835
December 18, 2023 at 7:31 pm
Because you start loving OIL
@ask_why000
December 18, 2023 at 7:31 pm
Americans should get serious about bringing manufacturing shore side and they have the power through their patronage.
@jasonford7216
December 18, 2023 at 7:31 pm
I know why..America is no good at anything
@_123Ackerman
December 18, 2023 at 7:31 pm
3:38 Tim stop the 🧢
@robertrada1660
December 18, 2023 at 7:31 pm
The cost in salary and standards make the difference..
@PetrKerka-hc2vk
December 18, 2023 at 7:31 pm
Jste skvělí. Je 19.02.
@luispalacio1168
December 18, 2023 at 7:31 pm
I will do made in America bye bye iPhone my next phone will be purism
@luispalacio1168
December 18, 2023 at 7:31 pm
Now it is made vietnan mexico and India
@PJVist
December 18, 2023 at 7:31 pm
because Americans are LAZY and ENTITLED
@hermanrogers1325
December 18, 2023 at 7:31 pm
It is all about cheap labor and more profit. I have a iPhone 6 by Apple and it is 9 years old and still working just fine so now I don’t need another until this one stop working
@sumomosu5522
December 18, 2023 at 7:31 pm
Labor cost are hight? How about we say why housing cost is high? You see there's how the system work people to provery. Seem like to me coporation don't want to pay worker the living wage.
@YoutubeWatcher731
December 18, 2023 at 7:31 pm
You need science and technology graduates to assemble tiny phone components? 😀
@neonnoir9692
December 18, 2023 at 7:31 pm
Purism is super shady and now insolvent. $2000 for a phone 🤣🤣
@tim_allen_jr
December 18, 2023 at 7:31 pm
Phones are not so complex that the American worker's labor isn't sufficient. Too much racism guiding these type of misconceptions.
@hunk0075
December 18, 2023 at 7:31 pm
Made in USA does not mean quality and Innovation. It could be just copycat technology in Asia.
@PetrKerka-hc2vk
December 18, 2023 at 7:31 pm
I já mám mobila z Číny a jsem spokojen. Je 15.32 hod
@hungrydrago
December 18, 2023 at 7:31 pm
Made in USA doesn't convey confidence as people think it does. Take tesla for example, cars made in the US is known to have lower quality than those production came out of Shanghai factory. It is a fact. Made in China doest mean low quality, it is sometimes hard to understand for little narrow brain.
@ShimobeSama
December 18, 2023 at 7:31 pm
They should just do what Librem does and offer a range of products increasing in quality and price, from budget communist/arch-nemesis-produced models to high-end domestically produced models. Also, is it that hard to automate the assembly? Why do you need hundreds of people to manually turn screws in an industry where chips are made using lasers and magnets at a microscopic scale, or whatever it is they do that's 100x more complex than making an automatic assembly machine. Tesla should jump in and make machines to assemble iPhones for cheaper than random third worlders with screwdrivers.
@redbutterfly88
December 18, 2023 at 7:31 pm
The truth is,.. very dangerous to put up a safe environment for the workers in the u.s. mass shooting, all gun violence u can imagine, robbery, workers rally, politics, shipping of all materials can be hastle too… this are all headache. Who wants to work in unsafe work states? U wont hear this problems in other country.
@harryv6147
December 18, 2023 at 7:31 pm
U.S. manufacturing of phones, politicians made deals that put kick backs to their pockets and they sent manufacturing overseas. It has happen to almost every U.S. manufacturer. This is because of lobbying to shift manufacturing to the cheapest labor and support slave labor by proxy. The other thing is population is larger by a 100 times over the U.S. If U.S. education was any good U.S. could do much better.
@Jose-ms9bm
December 18, 2023 at 7:31 pm
china and India are cheap Labor countries that's why apple goes there