Breaking News
Comments
krisi
User Rank
CEO
15B
krisi   8/30/2013 1:46:10 PM
NO RATINGS
Apple will have to foot the bill for this fab

elctrnx_lyf
User Rank
Manager
Re: 15B
elctrnx_lyf   8/31/2013 9:40:27 AM
NO RATINGS
Apple would definitely consider GF if they are planning to bring back manufacturing to USA.

wilber_xbox
User Rank
Manager
Re: 15B
wilber_xbox   8/31/2013 10:09:06 AM
NO RATINGS
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.

krisi
User Rank
CEO
Re: 15B
krisi   8/31/2013 12:13:09 PM
NO RATINGS
that is the problem with high tech in North America, lots of money, few jobs

lidation
User Rank
Freelancer
Re: 15B
lidation   9/1/2013 1:42:37 AM
I highly doubt GF will be anywhere close to TSMC or Samsung in terms of competitiveness, given their past track record.

Sheetal.Pandey
User Rank
Manager
Re: 15B
Sheetal.Pandey   9/1/2013 2:31:51 PM
NO RATINGS
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.

Peter Clarke
User Rank
Blogger
Re: 15B
Peter Clarke   9/2/2013 6:06:17 AM
NO RATINGS
Well Fab 8.1 is expected to employ 2,100 going on 3,000 staff and Fab 8.2 is taking the total for the whole camput to 6,700.

So that would be between about 3,700 and 4,600 extra jobs.

And remember with automated wafer fabs it is not really about the headcount. It is about the wafer count.

 

 

DMcCunney
User Rank
CEO
Re: 15B
DMcCunney   9/3/2013 3:33:15 PM
NO RATINGS
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.

jwalter
User Rank
Rookie
Re: 15B
jwalter   9/4/2013 1:15:07 AM
NO RATINGS
"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.

DMcCunney
User Rank
CEO
Re: 15B
DMcCunney   9/4/2013 10:59:51 AM
NO RATINGS
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.

Foxconn does assembly, and the chips used will be incorporated there, but do not need to be made there.  I haven't looked at an iPhone teardown in a bit, but my recollection is many of the components aren't made in China.  They get shipped there as part of supply chain activities,

I'm thinking about design time, and the added advantage of not having cultural and languages differences impede understanding.  A fair bit of work that got outsourced flowed back to the US because cultural barriers created roadblocks.

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.

Most of the latter are temporary.  The jobs will exist while the fab is being built, and go away once it's running.  Many of the workers who do those jobs will not be local, and will be imported from elsewhere.

There will be ongoing benefits to the local economy if and when the fab is up, because local industries will be involved in supplying the needs of the plant and the work force, but quantifying what that will mean in terms of additional jobs is difficult.

selinz
User Rank
CEO
Re: 15B
selinz   8/31/2013 11:37:09 AM
NO RATINGS
Do you really think that Apple would consider Global just because they've got manufacturing in the US? What recent history leads you to this conclusion?

R_Colin_Johnson
User Rank
Blogger
Re: 15B
R_Colin_Johnson   9/4/2013 6:44:10 AM
NO RATINGS
You may be right that "Apple will have to foot the bill for this fab" but once its built GF will be able to offer all its U.S. customers a "Made in U.S." branding option, which at the risk of sounding patriotic, could convince other fabless U.S. companies to come on-board (that plus the convenience of eliminating the constart back-and-forth of engineering personel on long-range flights just to keep the tech on track in far-away fabs).

jwalter
User Rank
Rookie
Re: 15B
jwalter   9/4/2013 6:59:52 AM
NO RATINGS
The question is what does GF offer in the US that Samsung doesn't? Other than not being a direct competitor of Apple, not a lot.  Samsung has proven an ability to ramp foudry capacity like none before have.  GF still has a lot to learn about the foundry business and a company like Apple can't risk that quite yet.  I predict TSMC to have the upper hand for at least the next 3-5 years.

 

Besides...very few consumers care where the chips inside the phone are made (99% have no clue what the radio, gps, wifi, touch screen, etc even are let alone what company made them and where). I think the made in USA label actually requires nothing more than assembly to be done in the US.

R_Colin_Johnson
User Rank
Blogger
Re: 15B
R_Colin_Johnson   9/4/2013 7:21:42 AM
NO RATINGS
Intellectually you are right--Samsung is hare to beat business-wise. But the PR value of a "Made in U.S.A." moniker is not to be undervalued--that's why GM is back on the top of the heap in sales--although I see your point that most people don't care where  the chips inside their devices are made (just like most people don't care where thier car is made--but just enough do to put GM on topn again).

jwalter
User Rank
Rookie
Re: 15B
jwalter   9/4/2013 10:55:21 AM
NO RATINGS
GM is actually a good point in my argument. Most of the components used in the cars are made outside the US (think radio, seat belts, tires, etc).  I happen to own 3 GM vehicles and only 1 was assembled in the US (the other 2 in Canada).  I think a study was done a few years ago on which vehicle brand is most made in the USA...and I think it was Toyota that came out on top. 

Here is a recent breakdown of by car model for 2013...half of the top 10 are foreign automakers and Toyota has 4 models, more than GM at 3 and Ford/Chrysler at 1 each.

http://www.cars.com/go/advice/Story.jsp?section=top&subject=ami

 

Oh...and I don't understand how Samsung, a korean company operating their major fabs in Texas is less American than GF funded from a middle eastern government being run in NY.

R_Colin_Johnson
User Rank
Blogger
Re: 15B
R_Colin_Johnson   9/4/2013 2:23:59 PM
NO RATINGS
jwalter: Good points all. A case in point: after I bought a Chrysler PT Cruiser some years ago I found out that only 55 percent of its components were make in U.S.--just barely enough to qualify as American made. I also see your point about Samsung's fabs in Texas versus GF in NY. In any case, I'm sure that foundry customers will, and should, make their decisions based on business considerations, as you point out.

R_Colin_Johnson
User Rank
Blogger
Re: 15B
R_Colin_Johnson   9/4/2013 7:21:43 AM
NO RATINGS
Intellectually you are right--Samsung is hare to beat business-wise. But the PR value of a "Made in U.S.A." moniker is not to be undervalued--that's why GM is back on the top of the heap in sales--although I see your point that most people don't care where  the chips inside their devices are made (just like most people don't care where thier car is made--but just enough do to put GM on topn again).

R_Colin_Johnson
User Rank
Blogger
Abu Dhabi and GlobalFoundries
R_Colin_Johnson   9/4/2013 6:54:55 AM
NO RATINGS
Regarding "GlobalFoundries is planning for an initial public offering (IPO) of shares, but this could also mean that it is unlikely to get any more multibillion-dollar investments from Abu Dhabi

Don't count Abu Dhabi out so quickly. Recently, the Semiconductor Research Corporation (SRC, Research Triangle, N.C.) opened its first international semiconductor research center, to be located in Abu Dhabi. GlobalFoundries is a long-time memory of SRC and cooperation with the cash-rich capital of the United Arab Emerites (UAE) is likley to continue unabated. 



Most Recent Comments
Hailey McKeefry
 
AKH0
 
sleibson-xilinx
 
David Ashton
 
mhrackin
 
Max The Magnificent
 
mhrackin
 
Max The Magnificent
 
Max The Magnificent
Flash Poll
Top Comments of the Week
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed

Datasheets.com Parts Search

185 million searchable parts
(please enter a part number or hit search to begin)
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Max Maxfield

Vetinari Clock: Decisions, Decisions, Decisions …
Max Maxfield
18 comments
Things are bouncing merrily along with regard to my uber-cool Vetinari Clock project. The wooden cabinet is being handcrafted by my chum Bob (a master carpenter) using an amazing ...

Jolt Judges and Andrew Binstock

Jolt Awards: The Best Books
Jolt Judges and Andrew Binstock
1 Comment
As we do every year, Dr. Dobb's recognizes the best books of the last 12 months via the Jolt Awards -- our cycle of product awards given out every two months in each of six categories. No ...

Engineering Investigations

Air Conditioner Falls From Window, Still Works
Engineering Investigations
2 comments
It's autumn in New England. The leaves are turning to red, orange, and gold, my roses are in their second bloom, and it's time to remove the air conditioner from the window. On September ...

David Blaza

The Other Tesla
David Blaza
5 comments
I find myself going to Kickstarter and Indiegogo on a regular basis these days because they have become real innovation marketplaces. As far as I'm concerned, this is where a lot of cool ...