Washington in Talks With Chipmakers About Building US Factories

[Wathen1955]

I hope this plays out well. We need to reduce out dependency on the CCP and bring back the middle class like Henry Ford did.

The Trump administration is in talks with semiconductor companies about building chip factories in the United States, representatives from two chipmakers said on Sunday.

Intel Corp. (INTC) is in discussions with the United States Department of Defense over improving domestic sources for microelectronics and related technology, Intel spokesman William Moss said in an emailed statement.

"Intel is well positioned to work with the U.S. government to operate a U.S.-owned commercial foundry and supply a broad range of secure microelectronics," the statement added.

Taiwan Semiconductor Manufacturing Co. (TSMC), on the other hand, has been in talks with the U.S. Department of Commerce about building a U.S. factory but said it has not made a final decision yet.

"We are actively evaluating all the suitable locations, including in the U.S., but there is no concrete plan yet," TSMC spokeswoman Nina Kao said in a statement.

Intel Chief Executive Bob Swan wrote a letter to the Department of Defense in late March in which he expressed the company's willingness to build a foundry - a term used in the industry to reference a chip factory - in partnership with the Pentagon.

"This is more important than ever, given the uncertainty created by the current geopolitical environment," Swan wrote in the letter dated March 30 and seen by Reuters on Sunday.

It comes amid increasing diplomatic tensions between the U.S. and China during the coronavirus outbreak, with both sides trading barbs over who is to blame for the spread of the disease after already being involved in trade tensions for almost two years.

"We currently think it is in the best interest of the United States and of Intel to explore how Intel could operate a commercial U.S. foundry to supply a broad range of microelectronics," the letter from the Intel CEO added.

The Trump administration's discussions with chipmakers were reported earlier by the Wall Street Journal, with the report adding that TSMC also has been talking with Apple Inc, one of its largest customers, about building a chip factory in the United States.

TSMC declined to comment on the talks with the iPhone maker.

The Journal had also reported that U.S. officials are looking at helping South Korea's Samsung Electronics Co., which has a chip factory in Austin, Texas, to expand its contract-manufacturing operations in the United States.

The U.S. Commerce Department, Samsung and Apple did not respond to requests for comment on Sunday.

https://www.newsmax.com/newsfront/tr.../10/id/966811/

[JetMechZ16]

We make the hyper pure Polysilicon needed for those chips. I'm sure my company would love the added business since solar isn't paying well.

[Steve_R]

Everybody wants manufacturing brought back from China. Nobody will want to pay the much higher prices for everything if that happens.

[Rob]

Originally Posted by Steve_R

Everybody wants manufacturing brought back from China. Nobody will want to pay the much higher prices for everything if that happens.

The trick is to cut out all of the middlemen and politicians. Once you do that, prices stabilize

[Steve_R]

Originally Posted by Dixievet

The trick is to cut out all of the middlemen and politicians. Once you do that, prices stabilize

That won't make up the difference between cheap Asian labor with shitty benefits and expensive American labor with good benefits. It won't get rid of expensive American regulations on literally everything that doesn't happen in Asia.

I'm all for more manufacturing here, but it will come with costs that people will bitch and moan about paying. It's like people who bitch about no legroom on airplanes when they shop for the cheapest ticket possible.

[mrvette]

So a chip costs a buck to make in China, now to get it out the door and loaded to a plane or freighter.....arrival in California most likely, unload the shipment and get it loaded to shipper to customer door.....

total cost of that chip by time it's at customer door....probably $2.50

now I would guess it would cost say 3 bux to make it here, and ship to customer's door.....

so ASSuming our .gov agencies don't rip hell out of company expenses....by adding taxes up the ass, etc or at least make them equal to any import chips.....that final cost differential maybe 50 cents/chip.....

so add that onto the cost of your Dell computer......so maybe 20 bucks....woopie doo.....

[Steve_R]

Originally Posted by mrvette

So a chip costs a buck to make in China, now to get it out the door and loaded to a plane or freighter.....arrival in California most likely, unload the shipment and get it loaded to shipper to customer door.....

total cost of that chip by time it's at customer door....probably $2.50

now I would guess it would cost say 3 bux to make it here, and ship to customer's door.....

so ASSuming our .gov agencies don't rip hell out of company expenses....by adding taxes up the ass, etc or at least make them equal to any import chips.....that final cost differential maybe 50 cents/chip.....

so add that onto the cost of your Dell computer......so maybe 20 bucks....woopie doo.....

Probably, guessing and maybe. I'm sure your numbers are accurate.

[mrvette]

Originally Posted by Steve_R

Probably, guessing and maybe. I'm sure your numbers are accurate.

The ONE trick is to leave the .govs and taxes outta the corporate cost of manufacturing......

in other words, quit levying stupid taxes on every damn thing the company does......50 billion/year on the property/etc......

tax enough on the income of the workers, to be same as anyone else in the region doing similar enough work.....even if they make more bux than a store clerk, don't need to tax them at 50%......

[Steve_R]

Originally Posted by mrvette

The ONE trick is to leave the .govs and taxes outta the corporate cost of manufacturing......

in other words, quit levying stupid taxes on every damn thing the company does......50 billion/year on the property/etc......

What company pays $50 Billion/year in property tax?

Dude, it's too early to be shitfaced drunk.

[dvarapala]

Originally Posted by Steve_R

Everybody wants manufacturing brought back from China. Nobody will want to pay the much higher prices for everything if that happens.

The military will. Supply chain security is more important than cost.

[Steve_R]

Originally Posted by dvarapala

The military will. Supply chain security is more important than cost.

Agreed. I'm referring to the average American who wants to "bring back manufacturing from China" but will scream if prices on manufactured goods go up.

[MadInNc]

Originally Posted by dvarapala

The military will. Supply chain security is more important than cost.

over the years of business I've seen numerous shortages of "chip" such as memory or more critical foundry space and factories. EPA would have to waive a hell of a lot of specs to allow a full scale cost effective foundry here

[VatorMan]

Originally Posted by Steve_R

Agreed. I'm referring to the average American who wants to "bring back manufacturing from China" but will scream if prices on manufactured goods go up.

You have a point. Wonder why India hasn’t picked up a lot of this cheap labor manufacturing? I’ve got to think it’s all about resources, which China has in spades.

[dvarapala]

Originally Posted by VatorMan

You have a point. Wonder why India hasn’t picked up a lot of this cheap labor manufacturing?

They're trying to.

[snide]

Originally Posted by VatorMan

You have a point. Wonder why India hasn’t picked up a lot of this cheap labor manufacturing? I’ve got to think it’s all about resources, which China has in spades.

There are no workers left in India. They're all over here, ****ing up computer systems left, right and center.

[dvarapala]

Originally Posted by snide

There are no workers left in India. They're all over here, ****ing up computer systems left, right and center.

There are over a billion left there to **** things up.