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Someone correct me here, but Texas Instruments was one of the companies that mortgaged their future in the name of financialization (https://www.linkedin.com/pu

by jppope 1y ago

Someone correct me here, but Texas Instruments was one of the companies that mortgaged their future in the name of financialization (https://www.linkedin.com/pulse/yeah-its-still-water-ben-hunt/ https://www.linkedin.com/pulse/yeah-its-still-water-ben-hunt...) and their market cap right now is ~170B... How are they going to afford an investment thats ~1/3rd the value of the company? Seems like one of those announcements that no one follows up on to keep them honest?

deleted 1y ago
[deleted]
spiderfarmer 1y ago
Can’t blame them for trying to pry a few dollars from an administration that seems desperate to show some wins.
- Moto7451 1y ago
  Especially when the reality of building and permitting will mean someone else, even if it’s from the current administration, will be in power long after the check is cashed and ground broken if it even happens. Because of the time scale there’s plenty of time for the “aw shucks it didn’t work out” if that’s the better path. Hitting a few milestones but not enough to actually break ground can be exceptionally profitable.
MichaelZuo 1y ago
Mortgaged what future? The linked article doesn’t even try to complete the argument… there’s not a single reason offered why TI could plausibly have increased total revenues more… instead of just spinning their wheels from a higher cost base. Or to put it another way, why wouldn’t that revenue growth have gone to their competitors?, which did in fact happen.
cchance 1y ago
They wont its another marketing scam by the admin lol, promise shit now, don't deliver reap benefits till the public/admin forgets, you dont actually have to do shit you just have to say you will same as the last time
- chaosbolt 1y ago
  [flagged]
  - ourmandave 1y ago
    But if we don't defend the 51st State of Israel, we'll never get Canada and Greenland to join.
    - lostlogin 1y ago
      Was the parent post referring to Israel or Russia?
      - freedomben 1y ago
        I would guess they are referring to Iran
        NoMoreNicksLeft 1y ago
        Gaza, if I'm not completely lost.
      - mensetmanusman 1y ago
        Probably Iran, but they also probably want to support Ukraine.
        LPisGood 1y ago
        I think drawing a parallel between those situations is odd. One is a war of aggression, one is of defense. One where American military action is being considered, one is not.
        yadaeno 1y ago
        Iran has been attacking Israel for 50 years through proxies. I don’t think it’s a clear “attack vs defense”. Also now is the time to deal with Iran and restore a sane government before they have a chance to add nukes to the equation.
bamboozled 1y ago
It's just pretend to keep the current admin happy, they know he won't be around for long.
hackernewds 1y ago
The downfall of so many large companies back then, including general Capital, basically turning into a finance arm glorified general electric
- ProllyInfamous 1y ago
  >back then And still. General Electric was (just a few decades ago) the largest non-gold asset, and isn't even Top 50 anymore. Saudi Aramco was (just a few years ago) the largest non-gold asset, and isn't even Top 10 anymore. If you want to read about similarities in Xerox's own hubris/downfall, Dealers of Lightning is one of my favorite non-fiction reads of the past few years (about their SFbay PARC Labs of the 70s/80s... and its failures to adapt).
  - FinnLobsien 1y ago
    Just because you brought up this topic: Which of the top tech companies today do you think are most like Xerox/GE in the sense that they're maximizing financial gain out of what they've built without building for the future?
    - gregw2 1y ago
      I'll bite. The "Computer Associates" of today is... Salesforce. Have they really improved Tableau, Heroku, Mulesoft, Sendgrid, Slack, now Informatica?
      - wil421 1y ago
        ServiceNow wants to become the new Oracle/IBM, same went Salesforce I think.
    - Uvix 1y ago
      Intel, Broadcom, and Nvidia.
      - deleted 1y ago
        [deleted]
chneu 1y ago
CEO doing it to get quick cash from Trump. Any company large/influential enough to get in front of trump right now is gonna be in the news saying this stuff. The entire admin runs on "the last person to convince trump". Trump pardoned a bunch of criminals, drug dealers, and other trash people because the right person talked to him at the right time. This is exactly what people said would happen. It's open season for bribery
- euroderf 1y ago
  It's not bribery. It's lubricating the machinery of government...
  - speed_spread 1y ago
    To slide downhill.
- pjmlp 1y ago
  Watching from this side of the Atlantic, and being from a country that was under dictorship, I think anyone hoping they only need to hold on to some future elections, haven't paid that much attention during history classes.
  - dummydummy1234 1y ago
    The hopeful side is that he is old, and most people voted him in because they did not like inflation and he promised he would bring prices down on day 1.
    - pjmlp 1y ago
      He might be old, but isn't alone, if authoritarianism isn't fought, others will carry on the work.
    - engineer_22 1y ago
      There's a lot of reasons. From my perspective VP being a terrible candidate seems to be #1
helsinkiandrew 1y ago
They also currently have one of the largest debt burdens of their group ($13B - 75% of shareholder equity)
bjakes 1y ago
[dead]
marbro 1y ago
[dead]
londons_explore 1y ago
I assume they're about to get a bunch of taxpayers funds for such a thing...
- uncletaco 1y ago
  Nope. This is Foxconn all over again.
detourdog 1y ago
One way is $6 billion over 10 years is $60 billion.
- knicholes 1y ago
  You mean $6 billion EVERY year for ten years. $6 billion over ten years would be amortization and be a total of $6 billion.
  - detourdog 1y ago
    Yes, sorry for the confusion.
chrsw 1y ago
It's simply not cost effective to manufacture advanced semiconductors at scale in the USA. No company, not Intel, not TI, not GlobalFoundries not even TSMC is clever enough to overcome this. Now, if there are other reasons to do this like for defense or supply chain security, that's a different story. But it will cost you. Knowing these facts changes your perspective on these semis-in-the-USA news headlines.
- ImJamal 1y ago
  You know some are already made in the US, right? Intel makes something like 50% - 75% of theirs in the US.
  - chrsw 1y ago
    And look what is happening to Intel
    - ImJamal 1y ago
      Do you have any evidence that it is the location of their fabs rather than all of the other issues they have?
deleted 1y ago
[deleted]
_heimdall 1y ago
As many here have said it seems most likely this is hollow PR. It is also possible, though, that the government has decided building chips in the US is actually a national security concern and TI is one of the companies that could make that happen with enough printed money.

by jppope 1y ago

deleted 1y ago

[deleted]

spiderfarmer 1y ago

Can’t blame them for trying to pry a few dollars from an administration that seems desperate to show some wins.

Moto7451 1y ago
Especially when the reality of building and permitting will mean someone else, even if it’s from the current administration, will be in power long after the check is cashed and ground broken if it even happens. Because of the time scale there’s plenty of time for the “aw shucks it didn’t work out” if that’s the better path. Hitting a few milestones but not enough to actually break ground can be exceptionally profitable.

MichaelZuo 1y ago

Mortgaged what future? The linked article doesn’t even try to complete the argument… there’s not a single reason offered why TI could plausibly have increased total revenues more… instead of just spinning their wheels from a higher cost base. Or to put it another way, why wouldn’t that revenue growth have gone to their competitors?, which did in fact happen.

cchance 1y ago

They wont its another marketing scam by the admin lol, promise shit now, don't deliver reap benefits till the public/admin forgets, you dont actually have to do shit you just have to say you will same as the last time

chaosbolt 1y ago
[flagged]
- ourmandave 1y ago
  But if we don't defend the 51st State of Israel, we'll never get Canada and Greenland to join.
  - lostlogin 1y ago
    Was the parent post referring to Israel or Russia?
    - freedomben 1y ago
      I would guess they are referring to Iran
      - NoMoreNicksLeft 1y ago
        Gaza, if I'm not completely lost.
    - mensetmanusman 1y ago
      Probably Iran, but they also probably want to support Ukraine.
      - LPisGood 1y ago
        I think drawing a parallel between those situations is odd. One is a war of aggression, one is of defense. One where American military action is being considered, one is not.
        yadaeno 1y ago
        Iran has been attacking Israel for 50 years through proxies. I don’t think it’s a clear “attack vs defense”. Also now is the time to deal with Iran and restore a sane government before they have a chance to add nukes to the equation.

bamboozled 1y ago

It's just pretend to keep the current admin happy, they know he won't be around for long.

hackernewds 1y ago

The downfall of so many large companies back then, including general Capital, basically turning into a finance arm glorified general electric

ProllyInfamous 1y ago
>back then And still. General Electric was (just a few decades ago) the largest non-gold asset, and isn't even Top 50 anymore. Saudi Aramco was (just a few years ago) the largest non-gold asset, and isn't even Top 10 anymore. If you want to read about similarities in Xerox's own hubris/downfall, Dealers of Lightning is one of my favorite non-fiction reads of the past few years (about their SFbay PARC Labs of the 70s/80s... and its failures to adapt).
- FinnLobsien 1y ago
  Just because you brought up this topic: Which of the top tech companies today do you think are most like Xerox/GE in the sense that they're maximizing financial gain out of what they've built without building for the future?
  - gregw2 1y ago
    I'll bite. The "Computer Associates" of today is... Salesforce. Have they really improved Tableau, Heroku, Mulesoft, Sendgrid, Slack, now Informatica?
    - wil421 1y ago
      ServiceNow wants to become the new Oracle/IBM, same went Salesforce I think.
  - Uvix 1y ago
    Intel, Broadcom, and Nvidia.
    - deleted 1y ago
      [deleted]

chneu 1y ago

CEO doing it to get quick cash from Trump. Any company large/influential enough to get in front of trump right now is gonna be in the news saying this stuff. The entire admin runs on "the last person to convince trump". Trump pardoned a bunch of criminals, drug dealers, and other trash people because the right person talked to him at the right time. This is exactly what people said would happen. It's open season for bribery

euroderf 1y ago
It's not bribery. It's lubricating the machinery of government...
- speed_spread 1y ago
  To slide downhill.
pjmlp 1y ago
Watching from this side of the Atlantic, and being from a country that was under dictorship, I think anyone hoping they only need to hold on to some future elections, haven't paid that much attention during history classes.
- dummydummy1234 1y ago
  The hopeful side is that he is old, and most people voted him in because they did not like inflation and he promised he would bring prices down on day 1.
  - pjmlp 1y ago
    He might be old, but isn't alone, if authoritarianism isn't fought, others will carry on the work.
  - engineer_22 1y ago
    There's a lot of reasons. From my perspective VP being a terrible candidate seems to be #1

helsinkiandrew 1y ago

They also currently have one of the largest debt burdens of their group ($13B - 75% of shareholder equity)

bjakes 1y ago

[dead]

marbro 1y ago

[dead]

londons_explore 1y ago

I assume they're about to get a bunch of taxpayers funds for such a thing...

uncletaco 1y ago
Nope. This is Foxconn all over again.

detourdog 1y ago

One way is $6 billion over 10 years is $60 billion.

knicholes 1y ago
You mean $6 billion EVERY year for ten years. $6 billion over ten years would be amortization and be a total of $6 billion.
- detourdog 1y ago
  Yes, sorry for the confusion.

chrsw 1y ago

It's simply not cost effective to manufacture advanced semiconductors at scale in the USA. No company, not Intel, not TI, not GlobalFoundries not even TSMC is clever enough to overcome this. Now, if there are other reasons to do this like for defense or supply chain security, that's a different story. But it will cost you. Knowing these facts changes your perspective on these semis-in-the-USA news headlines.

ImJamal 1y ago
You know some are already made in the US, right? Intel makes something like 50% - 75% of theirs in the US.
- chrsw 1y ago
  And look what is happening to Intel
  - ImJamal 1y ago
    Do you have any evidence that it is the location of their fabs rather than all of the other issues they have?

deleted 1y ago

[deleted]

_heimdall 1y ago

As many here have said it seems most likely this is hollow PR. It is also possible, though, that the government has decided building chips in the US is actually a national security concern and TI is one of the companies that could make that happen with enough printed money.