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I'd say the pay is on the low side even when comparing outside the FAANG. Globally tech wages went up but Intel didn't budge due to long standing poor financial
by AnotherGoodName 2y ago
I'd say the pay is on the low side even when comparing outside the FAANG. Globally tech wages went up but Intel didn't budge due to long standing poor financial performance (see stock price since 2000) leading to a slow rot of their core strength.
In a direct dollar to dollar conversion Intel in the Bay Area (the highest paying location) pays pretty much exactly 2x in raw salary for equivalent levels to TSMC roles based in Taiwan. That might sound like a pro-Intel comment but the simple fact is that it's a lot cheaper to live in Taiwan. 2x Taiwanese wages are not going to entice anyone to move to the highest cost of living region in the world. TSMC clearly has amazing talent and Intel are not only failing to compete against the other US tech giants, they can't even entice from lower wage regions of the world right now.
It's pretty obvious that there's talent Intel needs and if we want to onshore the production from Taiwan we need that talent but Intel isn't coming close.
- 2OEH8eoCRo0 2y agoVery interesting. What are the contributors for high cost of living in the Bay Area?
- ethbr1 2y agoHomeowners in the Bay Area.
- nradov 2y agoThe main contributor is high real estate prices. Much of the value generated by tech companies is eventually captured by property owners. Geography and open space preserves prevent building out anywhere within easy commuting distance. Politics prevents building higher density housing in most neighborhoods. The secondary contributor is high taxes. The Bay Area, and California in general, isn't the worst for taxes but in terms of total tax burden (income tax, sales tax, excise taxes, mandatory fees) it's near the top. Especially because state income taxes are no longer deductible on federal income tax returns.
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- 2OEH8eoCRo0 2y agoAre the real estate prices high because of high salaries? This is what I'm getting at- the infinite money glitch tech salaries skews a lot of things downstream.
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