They’re running into construction issues before even starting to staff the fabs with all PhDs they’ll need. It looks a lot like the problems Vogtle faced where they just couldn’t get the quality of work they needed.
Large-scale fab construction hasn’t occurred in the U.S. for longer than 20 years, and few builders within the country have the experience, capabilities and expertise required to deliver such specialized projects, according to a McKinsey report published this year.
American industry can expand, wants to expand but has to go to the central government to get permission. Industry will expand if and only if, when and only when the central economic planners decide.
Just like George Washington etc. fought for right?
That gas should stay lowering energy bills in the United States. It has no business going to foreigners.
If certain companies can’t find anything better to do with American natural resources, they shouldn’t even be granted leases on federal land.
I am perfectly okay with central planning as long as it strengthens the American working class. Chip fabrication and natural gas both do that when they’re manipulated by the government to exist or stay on American soil.
Their energy exports make sense because the public gets money from the natural resources that originally belonged to the public.
It makes no sense to allow a company to drill on public land, sell the resources to foreigners, and then keep the money for themselves. This is not limited to oil, either.
Saudi-owned Alfalfa farms in Arizona operate in a similar way. American water, for a product that’s sold to foreigners, missing the crucial third step where Americans should be compensated for a depleted natural resource.
Somehow this is an inherently offensive business practice to the American public, except when oil and gas conduct themselves this way.
Nothing in a pencil is a strategic, limited resource. He couldn’t make that video about a missile. I’m sure he would understand that the government must ensure it’s ability to build missiles, place computers inside, and fuel the vehicles that carry it, domestically.
It’s because people (a nation)is better off when things are sold tot he highest bidder and the money is used to buy the things they want.
Detroit makes and sells cars.
They use the money to buy clothes and building material (not a single clothing factory anywhere in Detroit.)
By the “don’t sell oil or gas” logic the residents of Detroit would be naked and seeping in cars.
I make my own coffee at home (no Starbuck for me) but I don’t make my own wristwatches nor my own cell phone. Free trade, the free market works really really well for me.
Having a room-full of people, short on business knowledge but hyperactive in political opinions deciding what we should buy and sell, fails every single time its tried, all of them, always and everywhere.
Not sure what argument you are making in response to my post…
Government’s make the rules of commerce, and those rules heavily influence what kind of economy will emerge as it plays out. It is part science and art, as there are so many moving parts. Too much government interaction, or not enough interaction can produce poor results.
The key is balance where markets can perform well, with just enough regulations to keep the bad players in check, but not so much to hinder new markets to be created, or stifle growth.
We learned that monopolies are not good for the majority for a healthy economy. Yet today, without the government regulating well enough to prevent monopolies, that is what has happen in the last 40 years. Nearly every industry is controlled by 5-6 companies.
Tax rates are also key. For 40 years, we basically had a salary cap…high tax on high earners. The argument that high taxes will stifle the economy, is false…as we had a steady, healthy economy during this timeframe…and more people benefited during that time…including high earners.
These are just 2 areas that dramatically changed in the 1980’s under Reagan…with those that followed him pretty much keeping those policies in place. Clinton made it worse with more dereg of the financial industry, and allowing monopolies in media with the Telco act.
Well supply-side economic is a whole set of policies.
it is best known for its tax policies (which work sometimes), but even now in the housing market we see that after years of extreme Keynesian-liberal “solutions” messing everything else an entire generation of American is begging for more housing supply.
It is a repeated pattern. Keynesians mess everything up and then beg for more supply to bail them out of the hole they’ve dug.
Chip industry, & housing industry are the most recent. Back in the day it was steel and autos.
In addition to the direct funding, the government would also provide loans worth up to $1.6 billion, with a total combination of public and private investment expected to equal roughly $12.5 billion.
The company is receiving some state benefits toward the project including $575 million in Green CHIPS tax credits. Also, the company will receive a $30 million infrastructure investment from The New York Power Authority
The Malta facility expansion will secure a stable supply of chips for auto suppliers and manufacturers, including General Motors (GM.N), opens new tab, Raimondo added.
GlobalFoundries and GM on Feb. 9 announced a long-term deal for the automaker to secure U.S.-made processors that will help it avoid factory-halting chip shortages like ones during the COVID-19 pandemic.
These subsidies are big enough to churn the stomach, but this country can’t afford the alternative. The future of too many American industries depends on the largesse of this policy.
Consider that statement in light of your earlier comments
Problem:
US education sucks so badly that even with massive subsidies we cannot build enough chips domestically.
Really bad solution:
Ib crease the subsidies
when the US need coal the market provided coal.
When it needed steel and auto, it provided steel an autos.
When it needed 1st generation, second generation, 3rd generation etc. chips hardware and software the market provided.
Now that we are on 7th generation or whatever some people, who have been indoctrinated to think this way suddenly believe “Oh no that is impossible. The market can never do this. when the economy needs something the one and only way to provide such things is giant subsidies.”
For this particular technology, national security cannot wait for the market to correct itself.
Chipmaking is genius work done with tools made by geniuses. Policy should reflect the harsh reality that our country needs to dole out bribes to herd those geniuses under our protective umbrella before an enemy gains control over the limited resource.
I don’t disagree with attempting to grow our own stock of smart kids, but we’re generations too late to make education our primary approach to this problem.
Right on!