Palmer Luckey says American companies lack critical engineering and production capabilities now dominated by China.
Palmer Luckey, founder of Anduril Industries and Oculus VR, warned that US companies have been “hollowed out” by China’s dominance in engineering and manufacturing. He noted China is no longer just a low-cost hub but a leader in technical expertise across key industries.
Luckey highlighted China’s strength in battery engineering, metallurgy, and optics, citing his experience producing millions of VR headsets in Shenzhen. He argued that US firms increasingly focus on design while outsourcing critical production, eroding domestic capabilities.
The comments underscore growing concerns about US reliance on China for advanced manufacturing and supply chain resilience. No immediate market reaction was reported.