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Texas Instruments’ new plants where Apple will make iPhone chips
- bix6 1y ago“As for federal support, TI got $1.6 billion of CHIPS Act funding, and a whopping 35% investment tax credit from Trump’s big bill passed in July.” So how much ownership is the US gov gonna get in this one?
- readthenotes1 1y agoTI is a going concern, no bailout necessary
- lokar 1y agoIntel is not getting any money that legislation (law) had not already allocated to them. The transfer of shares to the Gov is just a shakedown.
- givemeethekeys 1y agoJust? You mean they should have received the stupidly large sum of money without anything for the tax payer?
- Spivak 1y agoYes? That's what grants are. The government is buying a domestic chip industry with that money.
- givemeethekeys 1y agoWhy shouldn’t they get some equity in return for giving money to a for profit company?
- dmix 1y agoThey should be doing neither. America is the last place that is short of capital for industry investments where it requires gov taxes going to it, they have a huge domestic financial market and tons of foreign investment (but those require legitimate plans, not national security woo woo). This is just propping up weak megacorp industry like they did with Boeing, instead of fostering real progress.
- Spivak 1y agoI'm a bit biased because my home state is Ohio and they have it in their constitution that the state can't have a stake in any private company and can't even lend credit to any private company. And this amendment was written in blood, in the early 19th century the state nearly bankrupted itself investing in and taking stake in private companies. * The state can't risk taxpayer money on ventures that might not pay off or lose them money. How the state "gets around this" is by issuing zero recourse loans. The advantage is that when economic development money is handed out there's not an asset on the balance sheet. It's treated like it was spent. The value the state gets from spending the money has to be independently worth it for taxpayer without considering financial returns. * It eliminates a whole category of conflicts of interests where the government will get squeamish regulating or punishing bad behavior because it would hurt the taxpayers' investment. * It also eliminates vectors for corruption as well as the negative effects of the government having direct influence over specific businesses. No backdoor regulations from the state's ownership stake that don't go through the legislature. So I'm very heavily in the camp that government shouldn't ever be allowed to have stake in any private company. The line between government and private enterprise should be the wall this admin likes to talk about. I certainly didn't expect it would be republicans I would be trying to convince that state ownership of business is a bad thing.
- andrekandre 1y ago> So I'm very heavily in the camp that government shouldn't ever be allowed to have stake in any private company. The line between government and private enterprise should be the wall this admin likes to talk about. completely agree, private sector should be private and public be public, and the two should never co-mingle (and that includes politicians owning stocks and bonds etc)... right now there is so much corruption (sorry, "investment") it boggles the mind > I certainly didn't expect it would be republicans I would be trying to convince that state ownership of business is a bad thing. because they are competing with china and they are wiping the floor with the competition, so they feel they need to do the same i assume
- OhMeadhbh 1y agoSure.. calculators and MSP430s for remote power meters are keeping TI from closing up shop, but TI doesn't have the capitalization structure to bring up a fab for the types of chips people say they want. I mean sure... If you want to make 28nm chips, they're fine, and you can do a lot with 1 and 2 GHz parts, but... We keep saying we want to make the chips in the states that they're making in Shenzhen and Taipei... And honestly, a $1.6B grant from daddy warbucks may not be enough to prevent TI from taking the money and dropping out of the program in a few years. And this comes from a place of love... My family's been invested in GSI for almost 100 years
- dkdcio 1y ago> calculators and MSP430s for remote power meters are keeping TI from closing up shop calculators have consistently been a minor percentage of TI’s business (~5% of profits per source below). I doubt MSP430s in particular amount to a huge percentage either one random source: https://www.meta-calculator.com/blog/ti-graphing-calculator-profit-margins/ https://www.meta-calculator.com/blog/ti-graphing-calculator-... (this is pretty easy info to find)
- OhMeadhbh 1y agoI can assure you that TI's margins on calculators and MSP430s are much higher than their margins on DAC*s.
- Kirby64 1y agoDepends on which line of DACs. And calculators are an almost irrelevant amount of TIs revenue. They don’t report it individually, but it’s categorized under the miscellaneous “other” bucket which is only 6% of their business and includes DLP and “other charges” related to M&A. $947 million with all those other things means you’re talking about probably 100-300 million in revenue. There’s other businesses within TI that do more revenue than that by themselves.
- OhMeadhbh 1y ago
- piltdownman 1y ago[flagged]
- declan_roberts 1y agoWhat exactly are you talking about?
- pstuart 1y agoThe movie Trading Places. It's a comedy and worth a watch.
- OhMeadhbh 1y agoI'm guessing the commenter above was asking what trading places and commodities futures have to do with the referenced article. I'm trying to figure out if you view Trump + cronies as the good guys in Trading Places (Dan Aykroyd + Eddie Murphy) or the bad guys (Ralph Bellamy + Don Ameche). Or if you think the old institutional guys conspiring to ruin young Dan Aykroyd's life over a bet were the bad guys or the good guys? I'm not trying to be snarky, it's just that there are a lot of opinions offered on this site and we don't all view the world the same way.
- pstuart 1y agoIt should be self-evident which side he's on if one were to look at his hustles.
- piltdownman 1y agoThe use of "cronies" is generally pejorative!
- OhMeadhbh 1y agoThere are a great number of opinions expressed on this site. I generally think "cronies" is pejorative and you generally think "cronies" is pejorative, but I take it on faith that there is at least one person out there thinking "hunh... cronies? yeah. That sounds good. I don't know why people get so upset when I say that." And I do not know whether the person using it in a sentence is using it pejoratively. And heck, there are PLENTY of heresies I subscribe to: testing software is more often useful than it isn't, the web was done by amateurs, adding comments to code documenting the programmers' intent is useful, the rust borrow checker should have just been an add-on tool for C++, etc. So it may be ME who is against the grain on this one. Which is to say... just be careful out there when you assume things about a large audience.
- niemandhier 1y agoChips are like agriculture: It does not matter that the home grown product can only compete with government support, you never want to be in a position where you cannot provide for your country’s minimal needs purely from local sources.
- mgraczyk 1y agoHow? What if we just decide we will never go to war with Mexico or Canada and get comfortable with the idea of importing from our allies? There is no serious future risk from doing that
- fidotron 1y agoThis kind of answers your own question: the reality is you are only a reliable US ally [1] if you can hold them by the balls TSMC style. Given that countries go to great lengths to develop and maintain such dependencies. Canada's current weakness is at least in part because it has failed to do so. [1] Edit to add: This was/is poorly worded - I mean that the US will only guarantee that you remain an ally while they are in some sense dependent on you, and while doing so they may work to break that dependence, which you may interpret as them trying to abandon you.
- mgraczyk 1y agoYou are claiming that Canada will stop exporting to the US in the future? Populism does the opposite, they would likely stop importing. There's almost no risk to us that they would not export chips
- fidotron 1y agoMy claim is Canada has no unique product that it offers that the US is sufficiently conspicuously dependent on for it to guarantee any real sense of true independence, and so it finds itself subject to the whims of a foreign state. Right now there is a very large Canadian boycott of US products, services and tourism. I also had to explain to a client this week that because of the import tariffs on Chinese goods to the US the US assembled products are now no longer competitive with alternatives. The fact you were seemingly unaware of this kind of demonstrates the level of effect of it.
- foobarbecue 1y agoIs fabric here a mistranslation of "fabrica"? Correct translation would be "factory."
- pavlov 1y agoProbably it should be “fabrication plant”. Chip manufacturing factories are traditionally called fabs, short for that.
- NooneAtAll3 1y agowill this fix xkcd 768 problem, tho?
- lotsofpulp 1y agoDo teenagers even use those calculators anymore?
- NooneAtAll3 1y agoas I understand it (from outside), such calculators are part of american curriculum and is pretty much demanded on SAT and similar school-independent testing
- beeflet 1y agoThe new calculators are an abomination of reverse-compatibility and have a separate python coprocessor tacked on. But now it has a color screen
- ThinkBeat 1y agoThe transfer of wealth from tax payers to tech giants has never been better. Enormous state subsidies. For doing something the free market would do if it made economic sense. How many bailouts is Intel on now? The idea of forcing a merger between Intel and TMSC at what could be called be barrel of the gun, would at least make it (indirectly) Taiwan that would have to take over paying for Intel.
- ksec 1y ago>For doing something the free market would do if it made economic sense. It didn't make sense. Bailout? Merging Intel and TSMC? Sorry I am not following.
- _trampeltier 1y agoDesperate measures to save Intel: US reportedly forcing TSMC to buy 49% stake in Intel to secure tariff relief for Taiwan https://news.ycombinator.com/item?id=44801486 https://news.ycombinator.com/item?id=44801486
- isodev 1y agoI would never have expected the US as the “capital of capitalism” to start managing their economy like a soviet country in 1975.
- platevoltage 1y agoThe American people have been lied to for so long about what Socialism actually is to even be able to recognize it when it's happening right before their eyes.
- throwaway173738 1y agoNo this is what happens in authoritarian states all the time. Dear leader has a conversation with a “friend” and suddenly that friend’s enemies have some new limitation from the government. Socialism takes the form of generally higher taxes on profits from personal or corporate income which pay for things for the whole society.
- DoctorOetker 1y agoTitle reads very weird in American English, I'd expect "factory" instead of "fabric" (even though in Dutch, I'm bilingual, "fabriek" means factory). The actual title of the article used the word "project" not "fabric" Any reason to use "fabric" here?
- Ericson2314 1y agoEveryone talks about how the CHIPS, IRA, etc. purposely invested more in red states, but they don't talk about the mechanisms that made that happen. I would be curious
- favflam 1y agoVoters in Red states destroyed any motivation by foreign companies to build factories there (tariffs) and Democrats to focus infrastructure spending there (CHIPS, IRA being worthless in getting votes). And now Republicans are ok with impounding Congressionally assigned funds. So I guess outside of facebook brain rot and doom-scrolling, there is no way to convince voters to vote with policy (requires attention span of more than 30 seconds and high school level reading skills).
- mikeyouse 1y agoIn Michigan, there were several IRA-catalyzed investments worth many billions for battery facilities or various components — and the announcements were met with vehement protests because some of the companies involved were Korean or Chinese. It didnt matter that they were going to create many thousand good jobs and use tons of local construction, the weird conspiratorial bigotry was just too strong (fanned by the now-President and VP). Just no idea where to go from here. Feels really dire to be honest. https://www.politico.com/newsletters/power-switch/2024/09/13/chinese-battery-project-stirs-up-trouble-in-michigan-00179115 https://www.politico.com/newsletters/power-switch/2024/09/13...
- selectodude 1y agoAt some point we need to cut these people loose, understand they’re beyond saving, and move on with things.
- deleted 1y ago[deleted]
- dh2022 1y ago
- wileydragonfly 1y agoThey still haven’t fully torn down a Texas Instruments plant in Stafford, TX that closed a decade ago. But now we’ve got an In and Out and Costco on the former campus.
- hliyan 1y agoThis doesn't seem like the giant step I thought it was: > Unlike the costly bleeding edge 2 and 3 nanometer chips made by giants like TSMC, TI’s chips are made on cheaper, legacy nodes: 45 to 130 nanometers. What's worse: > Making chips takes an immense amount of water, and about a quarter of Texas is in drought. Luckily, Sherman has water rights to nearby Lake Texoma. Indeed lucky for TI, but probably not so for area residents.
- Gud 1y agoWhat the fuck. This is terrible news.
- oldpersonintx2 1y ago[dead]
- zozbot234 1y ago> Making chips takes an immense amount of water This is misleading, modern chip fabs recycle their water basically 100%. It's not being evaporated for cooling like in some data center deployments, it's just part of the process.
- uoaei 1y agoThat is of course the ideal, however local economic conditions (low/subsidized water prices, etc.) may dictate a different path by incentivizing another way of doing things (open cooling systems, etc.).
- hliyan 1y agoThat is not entirely accurate, as per the article: > TI will use about 1,700 gallons of water per minute when the new Sherman fab is complete, with plans to recycle at least 50% of that
- xyzzyz 1y agoJust for context, around 200 times that amount simply evaporates from the Lake Texoma’s surface every minute.
- OhMeadhbh 1y agoalso... CNBC put the video up on YouTube, if that's your platform preference: https://youtu.be/0ybDbElLnE0 https://youtu.be/0ybDbElLnE0
- whycome 1y ago> Making chips takes an immense amount of water, and about a quarter of Texas is in drought. Luckily, Sherman has water rights to nearby Lake Texoma. “It was about acquiring more rights, ramping up our production and being able to provide for the mass quantities of water it takes to run a semiconductor facility,” said Teamann, adding that the fab has almost doubled the amount of water Sherman uses. Luckily…