It knows that high production costs in Taiwan are forcing the island's manufacturers to move elsewhere to stay competitive.
But the integrated dinosaurs, hobbled by high production costs, are horribly uncompetitive and have remained so despite (or more likely because of) a long history of protection.
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Prices for commodities as diverse as gold and grain likewise will have to rise because they are now barely high enough to cover production costs.
In 2005 BP's Thunder Horse production platform in the Gulf experienced equipment problems that required high repair costs and set back production for three years.
Despite ample investment, however, production costs remain high and commercialisation elusive.
Venezuela has also vetoed foreign investment in certain oilfields, saying their production costs are too high.
While markets for things like carbon and water hold promise, they should not be oversold transaction costs are high and production is hard to measure.
Final deliveries of the F-22 were completed in the second quarter of 2012, and thereafter the production was halted citing high unit costs for F-22 and delays in Russian and Chinese fifth-generation fighter jets.
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Once upon a time there was a Halo movie in production, but due to high costs and an unclear direction it was scrapped.
Only then will Japan's food production become competitive and its notoriously high costs fall.
The Delta II's production costs and other expenses were too high to justify serving limited government and commercial markets.
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Royalties on production discriminate against ageing mines, with high extraction costs.
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This all means the production costs of making sweet wine are very high.
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But rather than set up production in a country with labour costs as high as Germany, Siemens could have entered into a joint-venture with an Asian manufacturer.
This device can then be used as the basis for more integrated and cost-efficient, high-volume production versions to help reduce the time and costs of getting to market.
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But its bid to automate swaths of the production process in the coming decade faces obstacles including high costs and rapid changes in technology.
But its bid to automate swaths of the production process in the coming decade has been facing obstacles including high costs and rapid changes in technology.
Because of inflexibility in the labour market and high labour costs, German companies do much of their labour-intensive production abroad, keeping the capital-intensive operations at home.
The company said amoebic gill disease is partly explained by higher water temperatures than usual and the high level of salinity, leading to increased mortality of fish, lower growth and increased production costs.
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While food businesses on the production end have benefited from the high prices, companies near the consumer end have suffered from rising raw material costs.
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