The big question in
semiconductor circles is how many of the job cuts are related to IBM's
semiconductor R&D work and what impact that will have.
to the Bloomberg report, at least 165 of the job cuts were in
semiconductor research and development. It's not known how many of these
jobs were based in upstate New York, where IBM is a central player in
the move to establish the Albany area as the premiere location for
semiconductor R&D globally. At least some of the R&D jobs
eliminated were at North Carolina's Research Triangle Park, according to
a separate report by the Herald-Sun, which also references
growth of the semiconductor R&D and manufacturing ecosystem in and around Albany has
been a major win for the U.S., and particularly for New York State.
While the final numbers are not yet in, it would appear that IBM has cut
at least some workers in that area. Will the IBM job cuts be a drag on
But tech jobs also get shipped abroad to places with more regulation and sometimes higher corporate taxes.
Certainly, many of the countries with growing semiconductor industries rank lower than the U.S. in the World Bank's "Doing Business" report.
A personal opinion, but because political opinions about small government attract a lot more airplay in America than elsewhere, a perception of impenetrable bureaucracy tends to develop amongst Americans more frequently than for other people, but really, American regulations are relatively lax compared to many other countries.
I don't think that was ever really the plan for the Fishkill fab, though. I think from the outset, it was there to supply IBM's internal needs, and all of the foundry/partnering activities were just to shore up the finances.
IBM doesn't invest in businesses that don't help increase EPS.
I do think the new CEO might be less inclined to look favorably on peripheral businesses that support the big iron cash cow, though. That could hurt over the long run.
IBM is exiting the US semiconductor business because the profit margins are too "low". The company enjoys higher profit margins on services.
The foundry boys thought they could sustain themselves by producing one-hit-wonders like game console chips. When that business dried up - they were toast. They'll probably continue to produce ASICs but the ASIC services will not be centered in the USA.
Didnt know "buddy" was considered name calling.
Please demonstrate where lower corporate taxes was the major driving force behind long term growth. I never said that lower corporate taxes are a bad thing. I just said that it is not the leading cause, and it alone can not change the long term climate.
I think you misunderstood the thinking comment.
Why would you not think countries in the span of decades are not capable of changing their business policies?
IBM has evolved into a company focused on systems, software, and services. in addition, the market for the ASICs and big iron processors IBM has developed for internal and external use has decreased. So, the announcement should not be a shocker. IBM is still a strong competitor, but semiconductors are no longer a key core competency for the organization.
This is what passes for discourse for some people - Bond Number cannot refute the demonstrably true statement that the lower taxes and pro-business attitudes in China and Russia are important factors in US companies out-sourcing so he reverts to what he knows best, name calling. And then he finishes with the suggestion that "some people should think a little more"....classic!