News Intel Subsidies for Ohio, Magedeburg Fabs Measure in Billions of Dollars

[Admin]

Intel and Micron to substantiate government support for chip fabs in front of U.S. Senate next week.

Intel Subsidies for Ohio, Magedeburg Fabs Measure in Billions of Dollars : Read more

 

[JamesJones44]

Big tech sure knows how to take advantage of the Midwest's desperation. They open a facility in a rustbelt/midwest state for as long as the tax credit lasts then close the facility and transfer the talented individuals out of the state while leaving the rest. Tesla did this to Michigan, Foxconn in Wisconsin, the list goes on if you want to look up all of the ones in your favorite search engine.

 

[jkflipflop98]

Big tech sure knows how to take advantage of the Midwest's desperation. They open a facility in a rustbelt/midwest state for as long as the tax credit lasts then close the facility and transfer the talented individuals out of the state while leaving the rest. Tesla did this to Michigan, Foxconn in Wisconsin, the list goes on if you want to look up all of the ones in your favorite search engine.

After spending $15B+ to build a fabrication facility it doesn't make much sense to just leave it abandoned in the middle of a world-wide semiconductor shortage. But hey, you know what they say - love of conspiracy theories is a sign of extreme gullibility.

 

[Endymio]

Big tech sure knows how to take advantage of the Midwest's desperation. They open a facility in a rustbelt/midwest state for as long as the tax credit lasts then close the facility and transfer the talented individuals out of the state while leaving the rest. Tesla did this to Michigan, Foxconn in Wisconsin

Eh? Tesla's Tool and Die facility is still operating in Michigan; they merely sold the land underneath it, and now lease the facility from a landlord.

As for FoxConn, your "take the money and run" narrative is wrong there as well. Foxconn inked the deal right before a world-wide economic slowdown, so it isn't surprising that their 13,000-employee factory was scaled back dramatically (to 1400 workers at present). And the vast majority of the "subsidies" Foxconn received were tax breaks-- meaning they still paid Wisconsin; they merely paid the them less than they otherwise would have. (But still more than the zero dollars the state would have received had Foxconn gone elsewhere.)

 

[JamesJones44]

Eh? Tesla's Tool and Die facility is still operating in Michigan; they merely sold the land underneath it, and now lease the facility from a landlord.

As for FoxConn, your "take the money and run" narrative is wrong there as well. Foxconn inked the deal right before a world-wide economic slowdown, so it isn't surprising that their 13,000-employee factory was scaled back dramatically (to 1400 workers at present). And the vast majority of the "subsidies" Foxconn received were tax breaks-- meaning they still paid Wisconsin; they merely paid the them less than they otherwise would have. (But still more than the zero dollars the state would have received had Foxconn gone elsewhere.)

How about the Tesla engineering center in Rochester Hills, MI... Where did that go? Oh yeah, they moved all of those employees to Palo Alto or they got pink slips after their subsidy lapsed.

As for Foxconn, the pandemic has ended, there are still shortages of components, yet there is zero talk for Foxconn ramping that facility in Wisconsin. That facility was put there as a bare minimum to appease the former POTS. Once those subs are up I'll put large money in Vegas that the facility goes dark.

 

[JamesJones44]

After spending $15B+ to build a fabrication facility it doesn't make much sense to just leave it abandoned in the middle of a world-wide semiconductor shortage. But hey, you know what they say - love of conspiracy theories is a sign of extreme gullibility.

https://jalopnik.com/a-peek-inside-the-soon-to-be-dead-tesla-motors-detroit-5065982

 

[Endymio]

How about the Tesla engineering center in Rochester Hills, MI... Where did that go? Oh yeah, they moved all of those employees to Palo Alto or they got pink slips after their subsidy lapsed.

Oops! That was supposed to be an R&D center; it never got anywhere near the 300-employees it originally planned, and most importantly, it never got one penny of government subsidies. It might have never been closed in the first place, except the state of Michigan refused to allow Tesla to sell, repair, or even to service its own vehicles in the state until the year 2020, as a result of Tesla suing Michigan.

As for Foxconn, the pandemic has ended, there are still shortages of components, yet there is zero talk for Foxconn ramping that facility in Wisconsin.

So what's your problem? 1400 employees is better than zero. The only actual cost to the state was the infrastructure it built around the site, and Foxconn agreed to pay $36 million/year to cover those costs, which, so far, it's been doing regularly. Your talk of them "taking money and then running" is a false narrative.

Allow me to explain some simple mathematics. I promise to build a factory in Montana, say, and the state offers me a whopping $10 billion tax break for doing so. Actually-- let's make it $10 trillion. Now-- if I don't build the factory, how much money is Montana out? Zero. Not one penny. When you understand that, you'll understand the fallacy in your reasoning.

 

[ex_bubblehead]

Time to close this before it goes any further down the hole.