The hidden supply chain costs of the AI boom

Economist Willy Shih discusses his book Where Does My Stuff Come From?, which explores the economics behind global supply chains, including the impact of the AI boom on manufacturing and the challenges of reshoring in America. He notes that the supply chain to support an LCD fab in Wisconsin never materialized, and that the pandemic-era chip shortage was a result of complex systems that politicians and regulators often ignore. Shih argues that China remains a global manufacturing powerhouse despite the risks, and that the markets have reacted to disruptions such as Trump's tariffs in a predictable way. He also touches on the issue of RAMageddon, a current shortage of memory chips, and the need for a more nuanced understanding of global supply chains.