Comment Taxes! (Score 1) 380
The company I work for outsources production to Singapore:
* Not due to a lack of technical expertise in Silicon Valley.
* Not due to differences in wages and other operating costs.
* Not due to a lack of capital equipment (though equipment is exported from California to Singapore for production).
The reason is export taxes. Singapore doesn't have them. And since a large fraction of customers are outside of the US, it only makes since to do production outside of the US. Even if Singapore has comparatively less experience and capital -- it won't for long.