The effect is technology globalization, and the cause is technology originally developed by the US has become very difficult to continue and improve in the traditional way, as mobility puts more emphasis on carrying data around compactly or storing it in the cloud, rather than hardcore computing. Sometimes new technology development even requires international collaborations. Particularly anything related to Moore's law, extending or going beyond its limit. As a result, other countries are able to catch up. China (SMIC) will be able to do 28 nm very soon. That will level the playground like a bomb, as the leading players struggle with FinFETs.
@CKent: What jobs exist in the U.S. will be filled via H1B visas. Does anyone understand that we are in an economic war and China/India is winning?
We are all in favor of competition when it benefits us in terms of lower prices and greater choice. We are less thrilled when we must compete.
Value is relative. Something is worth what someone else will pay for it. That includes the worker's labor. If another worker can do the same job you do as well as you can, and is willing to do it for a lot less than you charge, tell me why an employer should pay you your desired rate? (Hint: there is no reason.)
Work flows to where it can be done cheapest. The growth of the Internet has vastly accellerated that process. With instant high speed communications, many jobs that don't have to be performed in a particular location, like software development or engineering design, can be done from anywhere in the world, and increasingly are.
In the world we are moving into, if it can be done by machine, it will be. If it can be done somewhere else by someone willing to do it cheaper, that will happen too.
The challenge for any worker is to provide value the customer is willing to pay thier desired rate to have done. For technologists, it's the Red Queen's Race: "Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!"
The usual response to cries about competition from China and India are protectionist. and call for government regulation to protect US jobs. The problem is, it will at best delay the inevitable. There is constant pressure to lower costs and increase productivity, and those pressures caused the work to migrate where it could be done cheaper.
We all look for the best deals we can get on stuff we buy, and the Internet provides tools to help us find them. The flip side to protecting US jobs is higher prices. How much more are you willing to pay for what you buy to have it produced in the US by US workers at US wage scales? Half again what you pay now? Double? Because that may be the price of what you seem to want.
Good point Bert. I have seen it many times. The company will keep you as long as they feel that you are giving more than they pay you. As soon as they feel you are being paid more than you are worth to the company, you are at risk. It is a lot of fun to be good at what you do, but if it is not profitable for the company, you may still lose your job. I know people that are losing their jobs now despite what the president says. Times are tough and jobs are hard to find.
Does anyone understand that we are in an economic war and China/India is winning?
Heh. The problem happens because "we" can refer to different people and/or organizations. Corporations are in a war among one another. They will do whatever it takes to win. Corporations aren't countries.
You have to be cynical about these things, not because being cynical is fun, but because the cynical view is simply more accurate. Microsoft would move any aspect of its operation offshore, if they see a net market advantage to doing so.
Years ago, when I was just starting out, an older and wiser colleague told me that one doesn't owe any special loyalty to the company one works for. Why? Because if it's in their best interest, they will lay you off in a heartbeat. I thought he was being overly pessimistic, at the time, but over the years, I have seen that this is so.
If Satya Nadella from India becomes CEO, you can be sure that the jobs in India will be growing while the jobs located in the US will be shrinking. What jobs exist in the U.S. will be filled via H1B visas. Does anyone understand that we are in an economic war and China/India is winning? It amazes me how U.S companies allow themselves to be taken over.
Actually Junko, I think bringing in an outsider with a fresh perspective would be a good move that would likely bring discipline and focus to the company. However, knowing what path to choose when your background is from a different industry could be a challenge.
As we unveil EE Times’ 2015 Silicon 60 list, journalist & Silicon 60 researcher Peter Clarke hosts a conversation on startups in the electronics industry. Panelists Dan Armbrust (investment firm Silicon Catalyst), Andrew Kau (venture capital firm Walden International), and Stan Boland (successful serial entrepreneur, former CEO of Neul, Icera) join in the live debate.