Economy Intel over the next decade plans to invest 60 to 120 billion on factory space

[Deorum]

Good to hear an American company hardware manufacturer is building here.

Intel always has, it's in my first post ITT. They have operational US fabs that were finished in 1996, 2001, 2002, 2003, 2007, 2013, 2015, 2017, 2021. They just announced they're building two more in AZ alongside the other four, in addition to this (up to) $120 billion investment that will yield another eight factories by 2030.

This despite fabs being about 40% more expensive for them to build in America even when taking state and local government incentives into consideration. Those still fall well short of the grants and direct cash offered by other national governments for multinationals to build factories there. It is the most invaluable American corporation by miles and their industrial output just happens to be the most important tech in world by far.

This shit is fucking ridiculous.

 

[djacobox372]

"Factory space"

 

[Deorum]

A necessary investment for when China annexes Taiwain.

I wonder if the CCP believes they can seize administrative functions in Taiwan and keep TSMC running business as usual. There are kill switches on that corporation, but indeed the race is on to divert and rebalance supply chains.

 

[Amerikuracana]

That’s really good news. Thanks for posting. Now if we can encourage the same for

shoes
Toasters
Exercise equipment
Toys
TVs

Over the next 10 years, then we will be getting someplace.

 

[Neph]

I wonder if the CCP believes they can seize administrative functions in Taiwan and keep TSMC running business as usual. There are kill switches on that corporation, but indeed the race is on to divert and rebalance supply chains.

Self preservation is paramount and people know they'll be killed for that. I wouldn't put a bet on it either way - some people are prepared to die for a cause but many are not.

 

[Neph]

That’s really good news. Thanks for posting. Now if we can encourage the same for

shoes
Toasters
Exercise equipment
Toys
TVs

Over the next 10 years, then we will be getting someplace.

Capitalism works because it matches what humans do. For so long as people will buy cheap products then the US will not be leading these markets.

 

[Amerikuracana]

Capitalism works because it matches what humans do. For so long as people will buy cheap products then the US will not be leading these markets.

You know what store has the most products made in America and Canada % wise?

The dollar tree. Everything o get there is made in the United States or Canada.

Ot was the payroll cost on the income statement to jack up stocks so finance people could hit their quarterly bonuses. It’s not that much less expensive to make the stuff there, until we close down so many factories that we don’t have the complete chain of production for any products anymore.

 

[Neph]

You know what store has the most products made in America and Canada % wise?

The dollar tree. Everything o get there is made in the United States or Canada.

Ot was the payroll cost on the income statement to jack up stocks so finance people could hit their quarterly bonuses. It’s not that much less expensive to make the stuff there, until we close down so many factories that we don’t have the complete chain of production for any products anymore.

I didn't know that, thanks for letting me know! I can only imagine however that these products are mass-produced at a factory with almost nil labour cost. As soon as you start hiring Americans, which is what the objective is, the cost becomes uncompetitive with other nations whose labour force is so much cheaper.

 

[freakroor]

factory space < space factory

 

[Deorum]

Intel may be able to build the fabs, but will they be able to get the raw minerals required for these chips?
China has been going around making allies with countries that have these materials. Why do you think the Taliban was in China not long ago?

The most indispensable industry materials (silicon and germanium) are quite abundant and cheap, but there are a couple of rare earth elements used for things like high-κ dielectrics and chemical mechanical polishing that China has been gaining a concerning grip on. There is a government initiative currently in the works for the mining, extraction, and refining of REE deposits.

That’s really good news. Thanks for posting. Now if we can encourage the same for

Shoes
Toasters
Exercise equipment
Toys
TVs

Over the next 10 years, then we will be getting someplace.

https://reshorenow.org/

The mission of the Reshoring Initiative is to bring good, well-paying manufacturing jobs back to the United States by assisting companies to more accurately assess their total cost of offshoring, and shift collective thinking from offshoring is cheaper to local reduces the total cost of ownership. We are a nonprofit organization and offer a number of free tools to advance our mission.

https://reshorenow.org/blog/reshoring-initiative-2020-data-report/

One bright silver lining to the pandemic is the broad public and corporate realization and acknowledgement of the need to shorten supply chains and produce goods at home. Despite COVID, reshoring numbers were up in 2020. Reshoring and foreign direct investment (FDI) job announcements for 2020 were 160,649, bringing the total jobs announced since 2010 to over 1 million (1,057,054).

Also of significant importance: reshoring exceeded FDI by nearly 100%, the first beat for reshoring since 2013. Additionally, the number of companies reporting new reshoring and FDI set a new record: 1,484 companies. Reshoring will continue to be key to U.S. manufacturing and economic recovery in 2021 and beyond.

 

[Pride23]

They are the brains of all modern electronics and backbone of the digital economy that enable advances in everything from aerospace, computing, communications and defense to energy, health care, medical devices and transportation, in addition to next generation artificial intelligence, quantum computing and wireless networks.

They are the most capital intensive and technologically complex products to manufacture on the entire planet. It costs billions of dollars to build, equip, assemble and tune a single factory; a single EUV lithography machine runs as much as $140 million a pop. It takes three months and 700 processing steps to produce a modern computer chip.

You mentioned the auto industry...

Tesla said they could make their own factory and start producing them it just wouldn't make sense with the chip shortage likely over by the time they complete it and it's not a business they want to get into or focus on. I doubt it would cost them as much. I don't think you realize how much 120 billion is and how far it can go in the right hands. Intel is lagging in chips from what I have seen, not surprising they would need an exorbitant amount of money to make a factory.

 

[Deorum]

Are you optimistic, @Madmick? The IDM 2.0 strategy is a series of really brazen and almost hyperambitious moves that would see Intel reaching a peak not seen since the turn of the century if they can pull it off and hit all of the production targets (when the stock will start soaring).

AMD designs world-class µP chips, Qualcomm rocks up eye-wateringly amazing SoC's and NVidia is crushing it with GPUs. It means something that they're based in the US and proprietary know-how is kept stateside - aside from when AMD is trying to cut joint ventures with CCP backed Chinese firms in China on the cheap - but it doesn't really do anything for the strength of America's industrial base and manufacturing output.

The fabless firms are so lean with the advantage of focusing 110% of their attention on engineering and then get to sit back while TSMC - who is able to focus 110% of their attention on advanced manufacturing and process technology - cranks their designs out for them. Intel is attempting to do both at a bleeding edge level and it hit snags on the latter over the last few years. I don't think people appreciate the insanity of how difficult that actually is in today's industry.

So to say, "Nah, not only are we not going fabless and closing shop on our in-house American manufacturing and the hundreds of thousands of jobs it supports throughout our supply chain, we're going to increase capacity. And not only that, we're opening a foundry business to eat TSMC's lunch and simultaneously reclaim process technology supremacy." -- it's one thing to claim that, another to actually secure multiple deals and partnerships with ASML, AWS, IBM and Qualcomm while throwing down $120 billion in capital to see it all through. I reckon the mega-fab site will be in New York state, in @bobgeese backyard.

 

[matheuss92]

Is this a move for when China tries to annex taiwan?

 

[matheuss92]

I wonder if the CCP believes they can seize administrative functions in Taiwan and keep TSMC running business as usual. There are kill switches on that corporation, but indeed the race is on to divert and rebalance supply chains.

China still believes it can win that war by subversion. It is hard, but China will have all the money in the world to buy the shit out of the taiwanise. Its actually their best chance

 

[Deorum]

Is this a move for when China tries to annex taiwan?

China still believes it can win that war by subversion. It is hard, but China will have all the money in the world to buy the shit out of the taiwanise. Its actually their best chance

It's certainly intriguing.

If they actually went with an overt military campaign, it's highly unlikely the CCP would be able to take control of Taiwan without a considerable level of damage to TSMC's factories or the infrastructure that supports them. Even if they managed to pull that off, there are people within the corporation (amongst other Taiwanese nationals) who would be on deliberate sabotage missions of the assets.

If nothing else, the US/EU can essentially strike the company dead overnight by choking off the inputs of equipment, machinery and materials it is 100% dependent on to be the company it has become and can't be sourced from elsewhere. It's not so much a move in anticipation of what China might do, but does have the obvious goal of reshifting global production for the sake of national security in general.

It's also partly just Intel looking to become undisputed King again aside from top dog status based on revenue.

 

[Deorum]

America's production capacity may see a slight nudge from this, @ElKarlo.

The IDM 2.0 strategy is a series of really brazen and almost hyperambitious moves that would see Intel reaching a peak not seen since the turn of the century if they can pull it off and hit all of the production targets (when the stock will start soaring).

AMD designs world-class µP chips, Qualcomm rocks up eye-wateringly amazing SoC's and NVidia is crushing it with GPUs. It means something that they're based in the US and proprietary know-how is kept stateside - aside from when AMD is trying to cut joint ventures with CCP backed Chinese firms in China on the cheap - but it doesn't really do anything for the strength of America's industrial base and manufacturing output.

The fabless firms are so lean with the advantage of focusing 110% of their attention on engineering and then get to sit back while TSMC - who is able to focus 110% of their attention on advanced manufacturing and process technology - cranks their designs out for them. Intel is attempting to do both at a bleeding edge level and it hit snags on the latter over the last few years. I don't think people appreciate the insanity of how difficult that actually is in today's industry.

So to say, "Nah, not only are we not going fabless and closing shop on our in-house American manufacturing and the hundreds of thousands of jobs it supports throughout our supply chain, we're going to increase capacity. And not only that, we're opening a foundry business to eat TSMC's lunch and simultaneously reclaim process technology supremacy." -- it's one thing to claim that, another to actually secure multiple deals and partnerships with ASML, AWS, IBM and Qualcomm while throwing down $120 billion in capital to see it all through. I reckon the mega-fab site will be in New York state.

 

[ElKarlo]

America's production capacity may see a slight nudge from this, @ElKarlo.

Seems like most the USA chip makers are making new generation chips and what not. They are all gearing up for more production either through their own or fabless. Will def see a boost from this and hopefully most of that will happen in the USA

 

[Deorum]

Seems like most the USA chip makers are making new generation chips and what not. They are all gearing up for more production either through their own or fabless. Will def see a boost from this and hopefully most of that will happen in the USA

 

[PEB]

Seems like most the USA chip makers are making new generation chips and what not. They are all gearing up for more production either through their own or fabless. Will def see a boost from this and hopefully most of that will happen in the USA

I believe part of this is the growing influence of the Chinese government on overseas businesses doing business in China. I hear that the Government has even weighed in on Chinese businesses doing business overseas.

People like Alibaba an others feeling the grip of the government. Some people believe the Chinese government trying to limit exploding wealth of the richest Chinese businessmen.

Ether way people like Intel have the resources an talent to move ahead with this massive effort. The Chinese have been using a boozoka to plow trillions into technology development an it finally seems to be paying off.

The US needs to remain in this race with China an we lead with UV technology an make the machines. Chinese still lack in this area an will need access for some time.

 

[Deorum]

The US needs to remain in this race with China an we lead with UV technology an make the machines. Chinese still lack in this area an will need access for some time.

The capital equipment firms of the industry are really the players who hold the keys to the kingdom because it's practically impossible to produce cutting edge chips without their machinery, software and tools. There are only five such premier companies across the globe, with three based in the US (Applied Materials, KLA-Tencor, and Lam Research), one in the Netherlands (ASML) and the other in Japan (Tokyo Electron).

This is one of the best promos I've ever seen. <45>



Applied Materials, Inc. is an American corporation that supplies equipment, services and software for the manufacture of semiconductor (integrated circuit) chips for electronics, flat panel displays for computers, smartphones and televisions, and solar products. The company also supplies equipment to produce coatings for flexible electronics, packaging and other applications.

The company develops and manufactures equipment used in the wafer fabrication steps of creating a semiconductor device, including atomic layer deposition (ALD), chemical vapor deposition (CVD), physical vapor deposition (PVD), rapid thermal processing (RTP), chemical mechanical polishing (CMP), etch, ion implantation and wafer inspection.