Let's face the reality. Labor cost could be a non -issue at the beginning if US-based foundry can be as productive as off-shore. But eventually labor cost will kick-in and the difference could be 20-30% higher down the road. This business model is not sustainable unless you have sugar daddy behind it and state of NY has decided not to provide financial incentives any more to this venture. Let's see whether Abu Dhabi will be exactly that.
I think the New York state government deserves a lot of credit for getting that fab built there. They have promised some pretty serious financial incentives. I think it's true that labor cost is essentially a non-issue, and it's more about availability of talent, real estate, and government incentives.
Yes, an encouraging trend. Since an IC fab has a large degree of automation, I would think that the local labor costs would be irrelevant. Unfortunately the location would be driven more by real estate prices and would tend to favor non-U.S. locations.
This should be an embarassment to U.S. based chip makers that have shut down their foundries in favor of foundries offshore.
I know that this was planned while AMD still owned their foundries but Abu Dabhi came through for American workers.
It's been a long time since we've seen the very short sighted U.S. Companies invested in American foundries and manufacturing.
Thank You Abu Dhabi for doing what American companies refuse to do.
God bless and may Allah be with you,
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