Offshoring is an inexact term, considering that firms were perfectly willing to seek deals on work in North America, too, by building plants in Mexico. In 1965, Fairchild opened a factory on the Navajo reservation in Shiprock, New Mexico, taking advantage of high unemployment with a low-wage “trainee” program and $700,000 in loans from the Navajo Nation.52 Scholar Cedric Robinson calls sites like Shiprock “production enclaves,” places where corporations “could be guaranteed special privileges and higher rates of exploitation.”53 Whatever you call it, Silicon Valley reoriented around this labor arbitrage strategy, bifurcating high-cost engineering and design from low-cost assembly work—the Shiprock site quickly became New Mexico’s largest industrial employer.54 As we’ll see, the strategy culminated in “fabless” (as in, without fabrication lines) manufacturing in the following period, divorcing design and production at the firm level. The First World’s Cold War arsenal created the production enclaves where capital could count on low wages, freeing semiconductor firms and ultimately U.S. industry in general from domestic wage-price inflation. Besides, putting production in East and Southeast Asia kept electronics firms near their biggest customer: the U.S. military.