What Samsung’s Return to U.S. Chip Manufacturing Means For the Economy | WSJ

Semiconductor manufacturers Samsung, Intel and Texas Instruments recently announced plans for new chip factories in the U.S. WSJ’s Rob Copeland visits Central Texas to learn why Samsung is moving to the region and what this type of reshoring could mean for the American economy. Photo Illustration: Adele Morgan.

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#Samsung #Semiconductors #WSJ

[prem]

This and bringing in TSMC are the most strategically important moves the US government has made in recent times. Without an edge in semiconductor the US will lose its power to the rest of the world soon. Fabs in its own soil is really important

[aaaqqwwqqddsw]

These chips plant not only provide economic edge in modern economy but in the national security aspect as well.

[connermorrow]

Samsung built it's first semiconductor fab outside of Korea in Austin, TX in 1997 and has since invested billons of dollars in the site including a second fab at this location in 2006. The new Taylor, TX fab, located ~25 miles north of it's current factory, is a progression and expansion of Samsung's well-established semiconductor manufacturing footprint in the region.

[gimmeagig]

About Time is right. Germany realized that depending on Russian oil was a mistake. We are starting to learn a lesson along those same lines. The Chinese can never be trusted and if the the tensions over Taiwan turn into another Ukraine, we have huge problems. This is such a good strategic move . Definitely worth more than Aircraft carriers.

[STEVEARABIA]

It’s about time we learned a lesson in making things domestically. Can we please do this with more. Electronics, textiles, appliances, etc…..

[steinway]

This actually has a fun little knock on effect on local industries. I currently live in Portland which is where Intel just opened a massive new expansion to their production facilities. I also work in manufacturing and I've seen people leave to go work at Intel for a much higher paycheck. This has led to my current employer, and several others around the area, to raise their wages in order to retain their work forces. Couple that with the fact that Portland is raising the minimum wage and while I'm not looking forwards to the inevitable rise in the price of goods, I couldn't be happier.

[WoopyGoldbergsHair]

Great to hear, intel bringing entire supply chain back to the US

[og]

4:02 I didn’t know that Alexander Lukashenko was also a policy researcher

[raithki]

No one has mentioned the importance of (major) manufacturing tool companies such as Applied Materials (US), ASML (Europe), Lam Research (US), Tokyo Electron (JP), KLA (US). They are all based in the West and Japan, and very crucial for semi industry. Without them, TSMC and Samsung could not build their factory.

If replacing these companies were so easy, then China would have been independent in semi manufacturing long time ago (remember that China can make almost everything).

The only problem here is fewer and fewer American engineers want to do manufacturing type job, so talent pools are not as abundant as in Asia.

[christinearmington]

Now we just need to build a pharmaceutical supply chain in the United States.

[royparker]

I once watched an interview with the CEO of INTEL. He said that he would love to build a new chip plant in the US but if he tried to do so his shareholders would fire him due to the massive extra costs associated with building here. When the interviewer asked if was labor costs that were the main driver of the move to manufacture overseas he said that, while it was a factor, the main extra cost burden was from taxes and regulations of everything from environmental, EEOC, ADA, and a host of other alphabet federal and state agencies. the US basically taxed and regulated the manufacturing sector out of existence.

[Sugarsail]

I used to work in Semiconductor biz, bringing it to the US removes a HUGE vulnerability we have to the Chinese. This is fantastic news. Thank you Texas for supporting business instead of the communist agenda.

[whiteprivilege]

We need to get all our manufacturing back . I miss high quality well made products . I got kitchen equipment that's 32 years old and is absolutely gonna be around another 32 if I want it to.

[kwphone]

It is still a globalised industry.
High end chips still need silicon, rare earths, chemicals, etching, sputtering, EUV, robots, clean room clothes, masks, boots, gloves. Also the MBs and PCBs need the inexpensive capacitors, resistors, diodes etc. to work.

[Wildturkey]

I used to work as a stepper operator in South Building on TI's main campus and I loved it.TI was a great company to work for and I think I would have gone far working for them, unfortunately I couldn't stand for the 12 hour shift and was the last job I had before disability and 8 spinal surgeries. I'd love to go back if they would take me. I ran old 150mm and 200mm steppers. I would run up to 8 a night and it was a ton of work with hand handling of wafers, manual focusing of the stepper and loads of patterns a night. I loved the inspection of each lot, the microscopic alignment of each layer was just freaking cool. If you are a tech minded person, I strongly recommend this job, at least get into a fab. Class 10 clean room pushing a cart of boats from station to station before I started operating the steppers. It is a great job, do what you must to do it and I bet you will love it!

[pxxxbxxx]

Seems like it could be profitable, given robotics / automation and broken supply chains, to onshore a lot of manufacturing that went overseas. And this industry should be considered strategic for defense, although not convinced they need a subsidy (unless it's a tax break vs. funding).

[kiwizoey]

For several decades, Taiwan sends its brightest graduates to TSMC, and they work 15 hrs a day and retire at 30. Many livers ruined to establish our dominance in the industry and strengthen national security. It's not as easy as building factories. You need well educated people working extremely hard to be successful.

[darkchocolate]

Interesting watching this video and how Asian companies provided incentives for companies to relocate over there. I never thought about that.

[acote]

Bring it all home, it is clear that large suppliers out side the United States can’t be relied upon to deliver on a consistent basis. From pandemics to international politics we are at the mercy of others. There is no reason for these products not to be produced here. As for the issue of cheap labor just tariff those goods coming in to put their price.

[madmaxiemartialartsnerd]

Having local made products isn't just good for the economy it's also good for the consumer. I use to wonder why everyone in the past had nice shoes and jackets made in leather, many nice products in the old days were made in leather. And when doing my research in the old times, there was so many local leather selling businesses that it was easier for creators to make things out of leather, thus making it cheaper to make thus making it easier to sell at a better deal to local consumers.

The USA is a large country, while it makes sense that smaller countries can't be completely self efficient and need trade. With a country as rich and resourceful as the USA with Canada and Europe as it's closest allies, we have almost zero excuses to be in the situation we are in.

This was born from pure incompetence and poor preparation of previous presidents and people in power.