American business leaders have (had?) an obsession with gross margin and tech "advancedness." They thought they would be the winner as long as they occupied the high-tech sectors in the supply chain. So they discarded the high-volume, low-margin, low-growth, low-tech businesses like assembly lines and outsourced them. But the reality is that the proximity of the assembly lines creates a cost advantage that attracts more upstream suppliers to surround it. Even Intel was seeking to build more fabs in China before being stopped by the US government.