Massive new semiconductor investments announced in the US in the past year (employment, wages)

[James Bond 007]

Since Biden took office there has been a flurry of massive new semiconductor factories and expansions of existing plants announced on US soil. The Biden haters keep telling us he is a globalist sending manufacturing overseas and blah blah blah, but the reality is there have been a flurry of giant factory announcements in recent months:

As I reported last year, in March, Intel announced a $20 billion expansion of its chip making campus in Tempe, AZ:

Intel is spending $20 billion to build two new chip plants in Arizona

Intel announced on Tuesday that it will spend $20 billion to build two new chip factories, called fabs, in Chandler, Arizona.

But that was just the warm-up. In July, chip maker GlobalFoundaries announced a $1 billion expansion of its plant in Malta, NY:

GlobalFoundries expanding operations in Upstate New York

GlobalFoundries (GF), a local producer of semiconductor chips, announced plans to build a new manufacturing facility in the area.

Over the next few years, GF will reportedly invest $1 billion locally to build a new semiconductor fabrication facility on-site in Malta, doubling its capacity. Experts say GF is in a strong position in the semiconductor industry as a shortage plagues markets worldwide.

The company’s goal is to address that shortage, and the expansion likely will mean an uptick in area employment. GF already employs almost 3,000 at its Malta headquarters, and the new project is slated to add 1,000 more.

In November there was an announcement by Samsung for a $17 billion new semiconductor plant near Austin, Texas:

Samsung plans to build a $17 billion chip plant in Texas

Samsung is planning to build a $17 billion semiconductor factory in Taylor near Austin, Texas, over the next three years as part of an effort to increase its manufacturing capacity and alleviate the global chip shortage.

Also in November, Texas Instruments announced a $30 billion chip plant in Sherman, Texas, north of Dallas near the OK border:

Texas Instruments Chooses Sherman for New $30B Semiconductor Chip Site

Dallas-based global semiconductor company Texas Instruments announced today that it plans to build up to four new manufacturing plants in Sherman. Construction of the first two is expected to begin next year.

The 300-millimeter semiconductor wafer fabrication plants—or fabs—could result in a potential $30 billion investment from TI. They could also support as many as 3,000 jobs once complete.

And just this past week, Intel announced what could be the biggie: Possibly up to $100 billion for a new chip making campus near Columbus, OH. This one brought joy to my heart because it was so nice seeing one of these things finally come to the Midwest! It could possibly end up being the world's largest chip plant!

Intel to invest up to $100 billion in Ohio chip plants

Intel said on Friday it would invest up to $100 billion to build potentially the world’s largest chip-making complex in Ohio, as it looks to boost capacity amid a global shortage of semiconductors used in everything from smartphones to cars.

The move is part of Chief Executive Officer Pat Gelsinger’s strategy to restore Intel’s dominance in chip making and reduce America’s reliance on Asian manufacturing hubs, which have a tight hold on the market.

An initial $20 billion investment - the largest in Ohio’s history - on a 1,000-acre site in New Albany will generate 3,000 jobs, Gelsinger said. That could grow to $100 billion with eight total fabrication plants and is the largest investment in Ohio’s history, he told Reuters.

And if all that still weren't enough, Micron is currently searching the US for a site for a plant with an investment up to $40 billion. Unfortunately there are no Midwestern sites being considered.

That's a total of up to $208 billion in chip plant announcements in the past year!

All this began when, a month after he took office, Biden signed an executive order to address chip shortage through a review to strengthen supply chains. Shortly afterwards, Biden announced that his infrastructure plan would include $50 billion for the semiconductor industry.

The US semiconductor industry is about to boom! Thank you Brandon!

[sholomar]

Intel is a good long term buy around these levels. Their CEO is back in growth and competition mode, a stark contrast to the years of stagnation they faced in the 2010's. Their stocks valuation profile is much more attractive than AMD's at this juncture.

[Mad_Jasper]

Double post

[Mad_Jasper]

It is interesting that you attribute any of this to President Biden since the foundation was laid prior to the 2020 election.

The Journal said Intel and TSMC are acting at the behest of the Trump administration, which is seeking to reduce dependence on Asian chip manufacturers and blunt China’s aggressive foray into semiconductors.

The Taiwanese company announced in May that it would build a new chip facility in Arizona for $12 billion, which will break ground next year and is slated to come online in 2024. But it is unclear whether the project, which has secured generous subsidies from the Trump administration, will continue as planned under President-elect Joe Biden


GlobalFoundries has secured the right to purchase more land in Saratoga County near the chip manufacturer's $13 billion Malta campus.

Please note the dates of the articles.

[andywire]

I've been hearing for many years now that they are going to be doing this. Sometimes, they actually do invest in this stuff here. Yet, the shortage consistently gets worse and the expected delivery dates for new chips keeps getting stretched out further and further. So, I'll believe it when I see it.


I have no doubt that they can make this stuff here if they wanted to, but not at a price anyone would be happy about. Not yet anyways. That's the whole reason we are getting our chips from Taiwan in the first place... Not because it's our first choice, but because it's all about getting the most value for your dollar.

[jwest09]

Originally Posted by James Bond 007

Since Biden took office there has been a flurry of massive new semiconductor factories and expansions of existing plants announced on US soil. The Biden haters keep telling us he is a globalist sending manufacturing overseas and blah blah blah, but the reality is there have been a flurry of giant factory announcements in recent months:

As I reported last year, in March, Intel announced a $20 billion expansion of its chip making campus in Tempe, AZ:

Intel is spending $20 billion to build two new chip plants in Arizona


But that was just the warm-up. In July, chip maker GlobalFoundaries announced a $1 billion expansion of its plant in Malta, NY:

GlobalFoundries expanding operations in Upstate New York


In November there was an announcement by Samsung for a $17 billion new semiconductor plant near Austin, Texas:

Samsung plans to build a $17 billion chip plant in Texas


Also in November, Texas Instruments announced a $30 billion chip plant in Sherman, Texas, north of Dallas near the OK border:

Texas Instruments Chooses Sherman for New $30B Semiconductor Chip Site


And just this past week, Intel announced what could be the biggie: Possibly up to $100 billion for a new chip making campus near Columbus, OH. This one brought joy to my heart because it was so nice seeing one of these things finally come to the Midwest! It could possibly end up being the world's largest chip plant!

Intel to invest up to $100 billion in Ohio chip plants


And if all that still weren't enough, Micron is currently searching the US for a site for a plant with an investment up to $40 billion. Unfortunately there are no Midwestern sites being considered.

That's a total of up to $208 billion in chip plant announcements in the past year!

All this began when, a month after he took office, Biden signed an executive order to address chip shortage through a review to strengthen supply chains. Shortly afterwards, Biden announced that his infrastructure plan would include $50 billion for the semiconductor industry.

The US semiconductor industry is about to boom! Thank you Brandon!

Yep, Arizona's Intel, Texas Samsung, and Idaho's Micron, love the low wages, non-union, and dry GOP climate.

[Hammer Time]

Originally Posted by James Bond 007

Since Biden took office there has been a flurry of massive new semiconductor factories and expansions of existing plants announced on US soil. The Biden haters keep telling us he is a globalist sending manufacturing overseas and blah blah blah, but the reality is there have been a flurry of giant factory announcements in recent months:

As I reported last year, in March, Intel announced a $20 billion expansion of its chip making campus in Tempe, AZ:

Intel is spending $20 billion to build two new chip plants in Arizona


But that was just the warm-up. In July, chip maker GlobalFoundaries announced a $1 billion expansion of its plant in Malta, NY:

GlobalFoundries expanding operations in Upstate New York


In November there was an announcement by Samsung for a $17 billion new semiconductor plant near Austin, Texas:

Samsung plans to build a $17 billion chip plant in Texas


Also in November, Texas Instruments announced a $30 billion chip plant in Sherman, Texas, north of Dallas near the OK border:

Texas Instruments Chooses Sherman for New $30B Semiconductor Chip Site


And just this past week, Intel announced what could be the biggie: Possibly up to $100 billion for a new chip making campus near Columbus, OH. This one brought joy to my heart because it was so nice seeing one of these things finally come to the Midwest! It could possibly end up being the world's largest chip plant!

Intel to invest up to $100 billion in Ohio chip plants


And if all that still weren't enough, Micron is currently searching the US for a site for a plant with an investment up to $40 billion. Unfortunately there are no Midwestern sites being considered.

That's a total of up to $208 billion in chip plant announcements in the past year!

All this began when, a month after he took office, Biden signed an executive order to address chip shortage through a review to strengthen supply chains. Shortly afterwards, Biden announced that his infrastructure plan would include $50 billion for the semiconductor industry.

The US semiconductor industry is about to boom! Thank you Brandon!

Global Foundries is a Chinese-owned conglomerate. They have two facilities in Upstate NY. East Fishkill, and Malta. East Fishkill is a large site. Malta is massive.

[cjseliga]

Originally Posted by andywire

I've been hearing for many years now that they are going to be doing this. Sometimes, they actually do invest in this stuff here. Yet, the shortage consistently gets worse and the expected delivery dates for new chips keeps getting stretched out further and further. So, I'll believe it when I see it.


I have no doubt that they can make this stuff here if they wanted to, but not at a price anyone would be happy about. Not yet anyways. That's the whole reason we are getting our chips from Taiwan in the first place... Not because it's our first choice, but because it's all about getting the most value for your dollar.

I agree, too bad they didn't start building these plants like 5-7 years ago, since it takes almost 4 years to get these fabrication plants built and up and running. It will be interesting to see if any/all of them are truly built and if there are, whose to say there won't be a "glut" of new chips in 5 years and some of these new plants are shutdown!

[James Bond 007]

Interesting write-up about the reasons for Intel's choice of Columbus, at least compared to a neighboring state like Indiana.

Intel’s choice of Ohio for its $20 billion factory shows what matters at least as much as low taxes — and it costs money

In what was arguably the most consequential manufacturing announcement in recent decades, Intel recently picked a county just outside Columbus, Ohio, for the site of what is to be the world’s largest semiconductor plant.

The choice is important for what it reveals about the business of attracting businesses — and what actually affects business-location decisions in 21st century.

To attract the kind of high-paying, advanced manufacturing jobs, cities and states need an abundant share of college graduates, a steady flow of new graduates and communities in which these workers will desire to live. That’s a sobering lesson for states like neighboring Indiana, which can compete – or even beat – Ohio on tax breaks, tax rates and regulatory environment, but falls short in quality of life and educational attainment.

[Daryl_G]

Originally Posted by Mad_Jasper

It is interesting that you attribute any of this to President Biden since the foundation was laid prior to the 2020 election.

The Journal said Intel and TSMC are acting at the behest of the Trump administration, which is seeking to reduce dependence on Asian chip manufacturers and blunt China’s aggressive foray into semiconductors.

The Taiwanese company announced in May that it would build a new chip facility in Arizona for $12 billion, which will break ground next year and is slated to come online in 2024. But it is unclear whether the project, which has secured generous subsidies from the Trump administration, will continue as planned under President-elect Joe Biden


GlobalFoundries has secured the right to purchase more land in Saratoga County near the chip manufacturer's $13 billion Malta campus.

Please note the dates of the articles.

That is what Presidents do. Presidents take the credit based on the calendar year something happens and usually the public gives them credit for it too. In fact, I cannot think of a single industry where this is not true.

Do you think a new CEO would not take credit for increasing stock prices even though it was due to an action taken before he arrived? Yes the new CEO will, and take the bonus check that comes with it too.