Huge $20 billion micro chip plant coming to Ohio

The Spin Meister

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Huge news for the country. Intel is gonna build a $20 billion dollar facility outside of Columbus Oh. A microchip fab plant with two manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to get out of Taiwan and into a safe, secure US location.

 
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dailybuck777

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.

Haven't heard much about it. Seemed to pop out of nowhere. My speculation is that Intel wanted the combination of a pool of enough engineers to do the higher end work (supplied by OSU) and a large plot of land. Columbus is surrounded by cornfields.
 
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Wesauking Lion

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.

This is great news. It is crazy the US has a chip shortage when we can build the chips ourselves. Unreal. Its almost as if we have conceded that other countries are the only ones who can manufacture items.....
 

royboy

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This is great news. It is crazy the US has a chip shortage when we can build the chips ourselves. Unreal. Its almost as if we have conceded that other countries are the only ones who can manufacture items.....
As crazy as going from producing more energy than we consume and returning to increased dependence on OPEC and other producers?
 

Cletus11

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Haven't heard much about it. Seemed to pop out of nowhere. My speculation is that Intel wanted the combination of a pool of enough engineers to do the higher end work (supplied by OSU) and a large plot of land. Columbus is surrounded by cornfields.
no, when you have monster facilities like this being built, the location that gets them does so because the state of Ohio gave the best incentive package in grants and tax breaks, etc... for them to come there. how it always works.
 

NC2017

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.


Make Ohio Great Again!
 

Obliviax

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Haven't heard much about it. Seemed to pop out of nowhere. My speculation is that Intel wanted the combination of a pool of enough engineers to do the higher end work (supplied by OSU) and a large plot of land. Columbus is surrounded by cornfields.
 

Tweedbear

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LMTLION

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This is excellent news, particularly considering the geopolitical climate right now. I feel that chip fabrication is a national security concern.
 
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LionDeNittany

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.


Great for the US and especially Ohio which keeps making PA a second tier state.

This is also a product of Intel's disastrous shift a few years ago to only chip design.

They, much too late, realized what a moronic decision that was.

LdN
 

LionDeNittany

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no, when you have monster facilities like this being built, the location that gets them does so because the state of Ohio gave the best incentive package in grants and tax breaks, etc... for them to come there. how it always works.

Montana could build the plant for free and Intel still wouldn't move there.

One of the incentives is the appropriate work force.

LdN
 

Cletus11

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Montana could build the plant for free and Intel still wouldn't move there.

One of the incentives is the appropriate work force.

LdN
true, but other than montana and hawaii and alaska due to the obvious and maybe one or two other states all the rest of the states has an appropriate workforce. it is 99% about the $$$$, don't kid yourselve.
 

LionDeNittany

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true, but other than montana and hawaii and alaska due to the obvious and maybe one or two other states all the rest of the states has an appropriate workforce. it is 99% about the $$$$, don't kid yourselve.

You are completely wrong.

Intel isn't building a chip factory in probably 35 of the US states.

LdN
 
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Cletus11

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Let's wait until they break ground.
Remember the illusionary Wisconsin plant with all the cash and tax incentives.
It was never built.
Election was over political gain maximized but no plant.
Sorry if I am cynical
that whole wiscy thing was an illusion and actually, it was the chinese company's fault not as much as wisconsin. Wisconsin did the right thing in that all the incentives were tied to actual jobs being created and things being built. when the company started putting their hand out for money, wisconsin govt. said show me the jobs and the company could not as all the stuff they had projected was a lie. now the wisconsin govt. went along with that lie as anybody who looked at things objectively could have seen it coming, but that plant not being built was actually the reason.
 

The Spin Meister

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true, but other than montana and hawaii and alaska due to the obvious and maybe one or two other states all the rest of the states has an appropriate workforce. it is 99% about the $$$$, don't kid yourselve.
I am sure at least ten states gave them massive incentives. Any state.....especially the governors.....would have loved to be on tv all week bragging what a wonderful job they did to get the plant in their state. Am quite sure lots of other issues came into the calculations.

Having adequate utilities is huge as these things use massive amounts of water, sewer, electric power. Good, trainable workforce. Locations for ancillary businesses to develop.

One issue that may have been a key factor is being located close to the market. They will be pretty central to the automotive m, which uses huge amounts of chips, from Detroit to Tennessee so they have reduced shipping time and costs. Plus being close means they can work closely with designers and developers of each company.

And they are within a days truck drive of half the population of the country for all users of chips. Hell of a lot easier than shipping from Silicon Valley.
 

fairfaxlion2

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Great for the US and especially Ohio which keeps making PA a second tier state.

This is also a product of Intel's disastrous shift a few years ago to only chip design.

They, much too late, realized what a moronic decision that was.

LdN
They have a new CEO, I believe.

They let some finance idiot run the company for a while.

Now they have an engineer back in control
 

LionDeNittany

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They have a new CEO, I believe.

They let some finance idiot run the company for a while.

Now they have an engineer back in control

Yep. Completely agree.
This is how most finance people roll.

Looks like you need cash. Let's acquire this cash rich company.
OK

You PE is lower because you own this cash rich company with a very low multiple. You should sell it
OK

Someone at Intel decided it made sense to focus on their high multiple 'design' business. They probably were looking at Apple and thought they could replicate that.

Unfortunately for them, that was an incredibly stupid idea.

LdN
 
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fairfaxlion2

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Let's wait until they break ground.
Remember the illusionary Wisconsin plant with all the cash and tax incentives.
It was never built.
Election was over political gain maximized but no plant.
Sorry if I am cynical

It will be built. In the 2000s a number of companies were building and retooling fabs in New York state. It's not like this has never happened before.

Sadly PA's leaders are too incompetent to ever attract anything like this
 

fairfaxlion2

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Yep. Completely agree.
This is how most finance people roll.

Looks like you need cash. Let's acquire this cash rich company.
OK

You PE is lower because you own this cash rich company with a very low multiple. You should sell it
OK

Someone at Intel decided it made sense to focus on their high multiple 'design' business. They probably were looking at Apple and thought they could replicate that.

Unfortunately for them, that was an incredibly stupid idea.

LdN

And then they fired him, because they were getting crushed by AMD (who had an engineer CEO)


Intel really has the legacy knowledge and manufacturing know-how, though. I would bet on them over AMD in the long run, especially when there is another major change in the technology

However they really seem to have dug themselves into a hole
 

LionDeNittany

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And then they fired him, because they were getting crushed by AMD (who had an engineer CEO)


Intel really has the legacy knowledge and manufacturing know-how, though. I would bet on them over AMD in the long run, especially when there is another major change in the technology

However they really seem to have dug themselves into a hole

I saw the design the announcement the day it happened and started laughing.

Sent a message to a friend about how it would be an unmitigated disaster.

This chip shortage exacerbated the stupidity of that decision. Now they are buying production at all time high rates.

LdN
 
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fairfaxlion2

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Yep. Completely agree.
This is how most finance people roll.

Looks like you need cash. Let's acquire this cash rich company.
OK

You PE is lower because you own this cash rich company with a very low multiple. You should sell it
OK

Someone at Intel decided it made sense to focus on their high multiple 'design' business. They probably were looking at Apple and thought they could replicate that.

Unfortunately for them, that was an incredibly stupid idea.

LdN


I once worked for a small company and the guy in charge told me you can always tell what is going wrong in a company by the background of the new CEO.

If they put a finance person in charge they are not putting an emphasis on innovation and technology. It is about the share price, etc.

After the finance person gets fired, that's when you really have to look at who they bring in

If they put an engineer in, that's usually a sign that they are going to focus on innovation and technology. It means they need to catch up with a competitor, or something went miserably wrong (manufacturing, failed design) under the previous person

If the next person is a lawyer or an accountant, that is a red flag
 

demlion

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.

Thanks, Joe Biden!
 

LMTLION

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It will be built. In the 2000s a number of companies were building and retooling fabs in New York state. It's not like this has never happened before.

Sadly PA's leaders are too incompetent to ever attract anything like this
To me it would seem like Pittsburgh would be an ideal place to attract this type of project. You are accurate, though. Our leaders in the PA on both sides of the aisle are largely incompetent. The state is too busy trying to figure out what interstate bridges to toll rather than attracting opportunities for the citizens.
 

The Spin Meister

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Thanks, Joe Biden!
Now that’s funny. First it was President Donald J Trump that emphasized how stupid it was to rely on China for critical products. Second, it was President Donald J Trump that got through massive tax reforms to encourage companies to bring jobs back into the USA. Third, these decisions by global corporations take a long time to happen so their decision to do locate in the US and the site search itself started before Magoo was sworn in.

Now to be fair, Magoo does get some credit for this move. He is so weak, so compromised by China, so terrible ate forest elations that Taiwan.....where most chips are made.....is at serious risk of a Chinese takeover that chip makers are desperate to relocate out of there. And they are likely to accelerate the normal construction/implementation before Taiwan is lost. So ya.....let’s go Brandon!
 

Steve G

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Now that’s funny. First it was President Donald J Trump that emphasized how stupid it was to rely on China for critical products. Second, it was President Donald J Trump that got through massive tax reforms to encourage companies to bring jobs back into the USA. Third, these decisions by global corporations take a long time to happen so their decision to do locate in the US and the site search itself started before Magoo was sworn in.

Now to be fair, Magoo does get some credit for this move. He is so weak, so compromised by China, so terrible ate forest elations that Taiwan.....where most chips are made.....is at serious risk of a Chinese takeover that chip makers are desperate to relocate out of there. And they are likely to accelerate the normal construction/implementation before Taiwan is lost. So ya.....let’s go Brandon!
 
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Nbergbuck

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Huge news for the country. Intel is gonna build a $20 billion dollar chip plant outside of Columbus, Ohaitnro fab plant manufacturing lines. And with the option to build up to eight lines with a total of $100 billion dollars. A massive investment in America!

And this is on top of earlier announcements by Taiwan Semiconductor and a South Korean semiconductor company to build over $40 billion of chip manufacturing near Phoenix Ar. Seems companies want to,get out of Taiwan and into a safe, secure US location.

Obviously a good thing for Ohio and the U.S. in general. However, it continues a troubling trend. In Ohio over the decades economic growth and vitality has developed in the center of the sate around and in the state capitol. Meanwhile other areas of the state have declined. Been to Lima, Youngstown or Ashtabula? Sad. My question is has the same thing happened in PA? Has prosperity grown around Harrisburg, while place like Erie have wilted?
 

The Spin Meister

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Trump set the table. Isn’t his fault Foxcom.....a Chinese company which hates Trump.......failed on their end of the bargain.

Edit: Your Honor, let the record show that it was a lib that took the thread political.
 

Steve G

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Trump set the table. Isn’t his fault Foxcom.....a Chinese company which hates Trump.......failed on their end of the bargain.

Edit: Your Honor, let the record show that it was a lib that took the thread political.
The Foxconn deal was a con from the very beginning, was obvious to any one who looked even half way closely at it. And Foxconn. CEO has track record of running these big cons. So that makes Trump either the patsy in the deal as he was to stupid to see it for what it was or the shill for the deal, knowing it was a con all along and getting his cut.......
 
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LionDeNittany

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The Foxconn deal was a con from the very beginning, was obvious to any one who looked even half way closely at it. And Foxconn. CEO has track record of running these big cons. So that makes Trump either the patsy in the deal as he was to stupid to see it for what it was or the shill for the deal, knowing it was a con all along and getting his cut.......

Fortunately, unlike Solyndra, it wasn't a big deal or loss then.

LdN
 
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Cletus11

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I am sure at least ten states gave them massive incentives. Any state.....especially the governors.....would have loved to be on tv all week bragging what a wonderful job they did to get the plant in their state. Am quite sure lots of other issues came into the calculations.

Having adequate utilities is huge as these things use massive amounts of water, sewer, electric power. Good, trainable workforce. Locations for ancillary businesses to develop.

One issue that may have been a key factor is being located close to the market. They will be pretty central to the automotive m, which uses huge amounts of chips, from Detroit to Tennessee so they have reduced shipping time and costs. Plus being close means they can work closely with designers and developers of each company.

And they are within a days truck drive of half the population of the country for all users of chips. Hell of a lot easier than shipping from Silicon Valley.
as I said, it was a bidding war between states. part of the bidding war is grants, tax incentives, promises of infrastructure improvements, etc...it is all in the pot. and which ever state offers the best package gets the facility. that is how it works. chip manufacturing doesn't require a huge amount of natural resources (not like it is a lumber mill that needs to be near trees) and shipping of chips since they are so small plays little into it either. Available workforce some, but look at some the huge stuff out in the dessert of Vegas, not like there is a huge population there, it is just Nevada gave them some crazy incentives. You build a huge factory, there are plenty of people that will come work there (with the obvious you are not building it in the middle of nowhere where there isn't a population within 100 miles).
 
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The Spin Meister

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as I said, it was a bidding war between states. part of the bidding war is grants, tax incentives, promises of infrastructure improvements, etc...it is all in the pot. and which ever state offers the best package gets the facility. that is how it works. chip manufacturing doesn't require a huge amount of natural resources (not like it is a lumber mill that needs to be near trees) and shipping of chips since they are so small plays little into it either. Available workforce some, but look at some the huge stuff out in the dessert of Vegas, not like there is a huge population there, it is just Nevada gave them some crazy incentives. You build a huge factory, there are plenty of people that will come work there (with the obvious you are not building it in the middle of nowhere where there isn't a population within 100 miles).
But they still require significant public utilities.
 

Cletus11

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But they still require significant public utilities.
you are correct, it is not just grant money and tax breaks. it is the whole enchilada. It is who is willing to provide upgrades to power, water, wastewater, nat gas lines, road systems, infrastructure in general, etc...provide cheap or 'free' land, which state says they will streamline the permit process so the thing can get built in a reasonable time and not be held up in regulation and permit process for years. It is a little bit of everything.
 

The Spin Meister

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you are correct, it is not just grant money and tax breaks. it is the whole enchilada. It is who is willing to provide upgrades to power, water, wastewater, nat gas lines, road systems, infrastructure in general, etc...provide cheap or 'free' land, which state says they will streamline the permit process so the thing can get built in a reasonable time and not be held up in regulation and permit process for years. It is a little bit of everything.
Utilities are a huge issue. If an area is lacking in water, sewer or power it takes a couple years to design and build the system. Even longer if a new sewer plant or water purification plant is needed. Roads can be a major problem if there are homes, businesses , or other private holdings that could tie it up for much longer if the courts and/or eminent domain comes into play.

And a lot of large cities have limited capacity. Many are struggling just to keep up with growth
 

The Spin Meister

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Obviously a good thing for Ohio and the U.S. in general. However, it continues a troubling trend. In Ohio over the decades economic growth and vitality has developed in the center of the sate around and in the state capitol. Meanwhile other areas of the state have declined. Been to Lima, Youngstown or Ashtabula? Sad. My question is has the same thing happened in PA? Has prosperity grown around Harrisburg, while place like Erie have wilted?
Harrisburg has grown some but it is most of Eastern Pa that has grown as people flee NJ and NY. Pittsburgh/Allegheny County has grown some but the rest of W Pa is a ghost town of what it was 75 years ago. Drive RT 18 from Farrell through New Castle, Beaver Falls, Aliquippa, Ambridge McKeepsort, McKees Rock. Clairton and you will see widespread devastation.
 

SLion

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Fortunately, unlike Solyndra, it wasn't a big deal or loss then.

LdN
Oh except that $1b that lil Mount Pleasant and.Racine county invested in roads, infra to build for big factory that never showed nor even mention people forced from homes via eminent domain. The red hat mooks just can't accept Orange clown was utter sizzle seller con man. Foxconn (big WH ceremony), his tax cuts (never moved GDP up as promised) and China deal (toothless and wont meet targets). Don't forget insane farming corp socialism (40b year from 9b). Utter failure whose fat @$$ will still answer for insurrection.
 
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