Gerstner cites Morris Chang explaining why Texas cannot compete with Taiwan fab plants.
“The U. Yeah. Interestingly enough, he ran a fab plant for Texas Instruments in Texas. And he explains why Taiwan, like why Texas could never possibly compete with a fat plant in Taiwan.”
Gerstner states nuclear reactor costs drop 50% by the fifth plant and 70% by the tenth through scale production.
“if you look at these gen three and gen four reactors coming online, even in The United States, they always cost more in that first plant, but by plant five, it was cut in half, by plant 10 it was cut by 70%, right? So cost comes down as you ramp up scale production.”
Gerstner notes Tesla's Fremont factory employs 20,000 people and produces over 550,000 cars.
“Tesla, of course, produces cars over in Fremont just across across the bay from here, employs 20,000 people, produced over 550,000 Teslas in the Fremont factory.”
Gerstner says US will go from 0% to 15-20% leading edge chip capacity by 2030.
“Today, have about 0% of leading edge chips fabbed outside of Taiwan. Right? Almost nothing in The United States.”