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it makes perfect sense to have a factory right on your most critical client, even leaving the typically american grandiose fantasies of apocalyptic destruction

it makes perfect sense to have a factory right on your most critical client, even leaving the typically american grandiose fantasies of apocalyptic destruction aside. It even nets them a cool 3 billion dollars to do so, which I'm fairly sure is very welcome given Samsung's history of reinvesting this kinds of money for political gain. I do wonder why this isn't more common though, pretty much every gigantic company already has an administrative arm in the US, it sounds like it'd make sense to move at least some of their production side there too.

bell-cot 5y ago
When it is an incredibly expensive factory, requiring an incredible level of technical expertise to operate, and air freight from anywhere on earth to your biggest client is scarcely a rounding error in the price of the finished products - then NO, it makes no sense to put the factory next to the client.
- otrahuevada 5y ago
  On one hand, I misspoke. The US is not their biggest market, just a strategically _very_ important foothold in the continent, making and breaking financial decisions that impact every other country. On the other, do you happen to have sources for all that? Specifically, - That the cost of this plant is going to be in any way excessive/odd compared to, say, TSMC's plant basically next door - That the level of technical expertise required is inordinately hard to train in the US - That the air freight from (also, why air freight specifically?) prices to and from there are a constant, easily disregardable thing and will continue to be so Would help a lot to ground the conversation in reality a little bit more.
eigen 5y ago
Are they doing package and test at this fab or do they need to ship parts out to somewhere else, likely another country, before the client can use them?
- otrahuevada 5y ago
  Article doesn't say? I sure hope they do, if not in place, at least relatively locally, as that would point towards a bigger, more interesting commitment.

bell-cot 5y ago

When it is an incredibly expensive factory, requiring an incredible level of technical expertise to operate, and air freight from anywhere on earth to your biggest client is scarcely a rounding error in the price of the finished products - then NO, it makes no sense to put the factory next to the client.

otrahuevada 5y ago
On one hand, I misspoke. The US is not their biggest market, just a strategically _very_ important foothold in the continent, making and breaking financial decisions that impact every other country. On the other, do you happen to have sources for all that? Specifically, - That the cost of this plant is going to be in any way excessive/odd compared to, say, TSMC's plant basically next door - That the level of technical expertise required is inordinately hard to train in the US - That the air freight from (also, why air freight specifically?) prices to and from there are a constant, easily disregardable thing and will continue to be so Would help a lot to ground the conversation in reality a little bit more.

eigen 5y ago

Are they doing package and test at this fab or do they need to ship parts out to somewhere else, likely another country, before the client can use them?

otrahuevada 5y ago
Article doesn't say? I sure hope they do, if not in place, at least relatively locally, as that would point towards a bigger, more interesting commitment.