3 ms·

Presumably the government values US-based factories for reasons beyond just domestic employment (even if that's the biggest factor). Being able to produce chips

Presumably the government values US-based factories for reasons beyond just domestic employment (even if that's the biggest factor). Being able to produce chips in the US is good for national security.

reddog 6y ago
Yes is is good for the US, but not so much for the Manor Independent School District that is being ask to not collect property (school) taxes on the plant despite the massive increase in attendance that it will generate.
- adriancr 6y ago
  wouldn't income tax on employees or sales tax fix that?
  - bluedino 6y ago
    School districts get some federal funding, but it's mostly from property taxes.
    - pelliphant 6y ago
      I have no idea how american school funding works, but property taxes? Is that really true? That would mean that schools in richer areas with higher property values got more funding?
totalZero 6y ago
I think you're right. Semiconductor manufacturing is not a particularly employee-dense business, and the US must sustain power projection in the South China Sea and on the Korean Peninsula in the status quo, all the time, rain or shine. Even if you don't think about the product and supply chain, but only look at externalities, the US is less trapped in a battle of brinkmanship over Taiwan and South Korea if it has an alternative source of semiconductors in case of emergency. Keeping critical tech manufacturing in the Americas actually makes it easier for us to protect our allies in the Asia-Pacific region, by giving us less reason to make aggressive-looking moves that can be misinterpreted as offensive by China. Still, there is a clear economic benefit from such a move closer to home, even in times of peace and predictability. The US economy is all about outsourcing the basement and keeping the penthouse. But the hosts of our outsourced industry can "tech up," so to speak. If we let Asia-Pacific totally dominate the semiconductor fabrication industry, it's only a matter of time before they dominate the semiconductor design industry as well.
httpz 6y ago
While true that's more of a federal government interest while the tax breaks are coming from the local government. Maybe the local government will ask for some funding from the federal government.

reddog 6y ago

Yes is is good for the US, but not so much for the Manor Independent School District that is being ask to not collect property (school) taxes on the plant despite the massive increase in attendance that it will generate.

adriancr 6y ago
wouldn't income tax on employees or sales tax fix that?
- bluedino 6y ago
  School districts get some federal funding, but it's mostly from property taxes.
  - pelliphant 6y ago
    I have no idea how american school funding works, but property taxes? Is that really true? That would mean that schools in richer areas with higher property values got more funding?

totalZero 6y ago

I think you're right. Semiconductor manufacturing is not a particularly employee-dense business, and the US must sustain power projection in the South China Sea and on the Korean Peninsula in the status quo, all the time, rain or shine. Even if you don't think about the product and supply chain, but only look at externalities, the US is less trapped in a battle of brinkmanship over Taiwan and South Korea if it has an alternative source of semiconductors in case of emergency. Keeping critical tech manufacturing in the Americas actually makes it easier for us to protect our allies in the Asia-Pacific region, by giving us less reason to make aggressive-looking moves that can be misinterpreted as offensive by China. Still, there is a clear economic benefit from such a move closer to home, even in times of peace and predictability. The US economy is all about outsourcing the basement and keeping the penthouse. But the hosts of our outsourced industry can "tech up," so to speak. If we let Asia-Pacific totally dominate the semiconductor fabrication industry, it's only a matter of time before they dominate the semiconductor design industry as well.

httpz 6y ago

While true that's more of a federal government interest while the tax breaks are coming from the local government. Maybe the local government will ask for some funding from the federal government.