NY will be foundry hub then. Maybe other companies than Apple will be willing to bring manufacturing back but from where 15B USD will come. How much is government's contribution. Also, only 2000 more jobs does not sound like much given the scale of investment.
That is good news for american workforce its important that manufacturing happens within america there is lot of unrest when these kind of business opportunities goes outofthe country but wonder how they would be managing cost.
Also, only 2000 more jobs does not sound like much given the scale of investment.
It's not, but that's the nature of high-tech. It's a classic capital-intensive business. Semi-conductor fabs are astronomically expensive to build, and getting more so, because the euipment installed in the fabs to make the semi-conductors is fantastically expensive, and getting more so as process geometries shrink.
It's not like the old fshioned factory with lots of guys in the assembly line. The machines do the work, and the people are there to program and maintain the machines and the plant the machines are installed in. It doesn't take a huge worforce to do it.It will benefit the local economy as the source of some jobs when up and running, and have secondary benefits to the region in terms of supplying what the plant and its workers need, and to the regions and the state in terms of tax revenues.
There are somewhat higher costs because of the location, land cost, construction cost. and tax structure. While the plant will offer likely higher wages than an offshore fab, wage costs are unlikely to be a significant addition to the overall cost of operating the fab.
The fab has the advantage of being closer to the customer for faster design cycles and quicker time to market, which is likely to offset the higher costs.
"The fab has the advantage of being closer to the customer for faster design cycles and quicker time to market, which is likely to offset the higher costs."
Not if the main customer is to be Apple. Most of their current chips are made in Texas (closer to Apple HQ in Cali) and if you really think about cycle time of product then Taiwan (TSMC) is actually a better choice considering Foxconn is in China.
Unfortunately what is understated in this article are the real jobs that will be created. They mention only the GF jobs, but what about the constructions workers, road builders, tool installers, etc, etc, etc. That being said the track record of GF is not that great so far and they are far from fully utlizing Fab 8.1 so to be planning Fab 8.2 is a bit premature in my opinion.
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