By on January 21, 2022

Intel has announced a $20 billion investment to transform a 1,000-acre plot in New Albany, Ohio, into the latest addition to its U.S. chip-manufacturing hub. Construction is scheduled to commence later this year with operations starting in 2025. But everyone’s wondering if it is going to be enough to rectify the pathetic state in which domestic vehicle production currently finds itself. 

With automotive output having fallen off a cliff at the start of the pandemic, the industry has been using the global semiconductor shortage as the default excuse for low volumes. However, the reality is that the issue is quite a bit more complicated than there not being enough microchips for vehicles. Varied national responses to the pandemic have resulted in freezes at ports, closed border crossings, and rolling shutdowns at facilities where outbreaks have been detected. The low production volumes have also resulted in a pricing spike during a period of sharp inflation that’s likewise alleged to have encouraged some consumers to hold off on any major purchases. But the chip shortage continues being brought up because it has remained pervasive, as suppliers have transitioned to more profitable units going into small electronic devices, and offers an easy way for the automotive sector to throw any negative attention off itself.

The Biden administration has said that one of its biggest priorities is to strengthen domestic chip capacities and has been talking with suppliers to determine how best to give aid. Intel CEO Pat Gelsinger reportedly had just left the White House before giving an exclusive interview with Time about the company plotting the largest single private-sector investment in Ohio’s history.

“Our expectation is that this becomes the largest silicon manufacturing location on the planet,” Gelsinger told the outlet. “We helped to establish the Silicon Valley,” he said. “Now we’re going to do the Silicon Heartland.”

Considering the current state of Silicon Valley, that almost sounds like a threat. But the Intel CEO obviously means establishing a booming technology sector in the Midwest. The planned $20 billion investment is going exclusively toward chip fabrication at two facilities, though the company is anticipating eight sites worth an estimated $100 billion.

From Time:

The announcement comes amidst a push to increase domestic manufacturing of semiconductors. Partly because of enormous incentives offered by other countries to jumpstart semiconductor manufacturing on their shores, the share of chips made in the U.S. has fallen to 12 [percent], from 37 [percent] in 1990, according to the Semiconductor Industry Association (SIA). As booming demand and supply chain woes led to semiconductor shortages over the past year, entire U.S. industries like auto manufacturing were crippled.

Semiconductor manufacturing has grown at a much slower rate in the U.S. than in other places around the world, particularly East Asia, in part because it costs 30 [percent] more to build and operate a fab over 10 years than it does in Taiwan, South Korea, or Singapore, according to the SIA.

To create a more reliable supply of chips, the federal government is weighing providing incentives for chip makers in the U.S. The CHIPS for America Act, passed last year, authorized federal investments in chip manufacturing, but it did not provide funding. The Senate passed $52 billion in funding in June, but the House has not passed the legislation.

Lobbying has been ongoing, however. Intel has allied itself with other semiconductor manufacturers (e.g. NVIDIA, AMD, and GlobalFoundries) to convince Washington to pour money on the industry in exchange for more domestic capacity. Gelsinger even said he met with numerous leaders on Capitol Hill, including the Problem Solvers’ Caucus and New Democrat Coalition to drive the point home.

“[In] my first meeting with the Undersecretary of Defense basically scolded her,” he recalled. “I said, Why am I explaining why this is so important to Congress, and you’re not?'”

There’s no question that the United States needs to localize more manufacturing. If the last two years have taught us anything, it’s the general fragility of global supply chains. Companies have taken notice, too. Intel is already plotting billions of investments to build in a new factory in Arizona, ditto for the Taiwan Semiconductor Manufacturing Co., and Samsung has set aside $17 billion for a facility in Texas.

But is all of this actually going to help pull the automotive sector out of its current rut?

Concerns remain that manufacturers will continue prioritizing more modern chips, rather than the older (often less lucrative) units that typically go into motor vehicles. Though companies have said, with enough government help and sufficient automation, American-based facilities can become financially competitive with their Asian counterparts. As labor costs were one of the largest contributing factors encouraging firms to shift manufacturing to the East, there’s reason to buy into the premise.

Though there is also reason to doubt it.

Whenever governments begin promising money, multinational corporations begin pacing around like starving animals. They’ll do or say whatever is necessary to procure financial aid and lobby until the cows come home — and then they’ll ask the cows for money. Assuming more chips are manufactured within the United States, it’s all but a guarantee that they’ll still end up being shipped around the world before they reach their final destination. Localizing production will help in some instances. But most of these facilities won’t be operational until 2025 and plenty of outgoing units will still be impacted by supply chain problems caused by closed border crossings and overtaxed ports. Speaking with Dan Hutcheson, vice chair at TechInsights, Time said that the vast majority of chips would still need to make their way through China right as geopolitical tensions are reaching a fever pitch.

Gelsinger suggested that everything Intel is doing could be localized if the $52 billion CHIPS for America Act ends up being funded, however.

“My objective would be sand to product to services, all on American soil,” he said.

He also talked a lot about transforming parts of Ohio into another U.S. technology hub, which state leadership seems genuinely excited about. Ohio Governor Mike DeWine has said the last few years have helped the region sell Americans on cheaper living and more laid-back suburban lifestyles. While the state failed to draw in the same number of people as Texas and Florida, it still nabbed enough people leaving coastal states to see a nearly 3 percent population growth over the last decade. DeWine believes the same has been true for tech companies.

Intel is plotting 3,000 new jobs for Ohioans and says the state will become its third regional manufacturing hub inside the United States. Another 7,000 temporary positions will be allocated for construction workers necessary for building the new facilities. But Intel is still talking almost exclusively about building more advanced chips — which are important for keeping the U.S. competitive but not as useful for the automotive sector. Still, improving domestic capacity in general probably won’t be putting North America in a worse position than it already was in.

[Image: Gorodenkoff/Shutterstock]

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134 Comments on “Will Intel’s Ohio Chip Plants Fix Automotive Supply Chains?...”


  • avatar
    bullnuke

    LOLOL! In about 4 or 5 years it might. They’re building over near Jack Baruth so you might ask him. Likely they’re going to fab 5nm chips so, nope, not for the auto industry.

    • 0 avatar
      redapple

      Hey
      What ever happened to Jack?
      He vanished from R&T a while back.

    • 0 avatar
      RHD

      By the time these plants come on line, Covid will be a thing of the past and there will be an oversupply of chips. At least we’ll have domestic production and won’t be at the whim of whatever happens on the other side of the world.

      • 0 avatar
        stuki

        “At least we’ll have domestic production and won’t be at the whim of whatever happens on the other side of the world.”

        No we won’t, and yes we will.

        Nothing here changes the cost differential. Taxpayers are just handing Intel owners and execs billions. Once that money is divvied up and handed out, it’s still 30% (At least. And rising) cheaper to have chips made in Asia. As well as more predictable. Leading to higher average quality and reliability out of there.

        Hence, chips will, once any possible immediate crisis is over, again be made in Asia. Then Intel’s lobbyists and salesguys will “explain” why it is so important to congress that they should be handed even more billions…. Etc., etc.

        The way to ensure chips are made in the US, is to ensure it is meaningfully cheaper and more reliable to make them here than anywhere else. That won’t happen, as long as for every million spent on workers and raw materials here, five times as much as elsewhere, is spent on lawyers, rent, insurance, lobbying, “investors” “community feelgood”, blah-blah. It’s no difference in other industries. They’re all leaving. Can’t compete, while at the same time being forced to keep the leeching classes in ever greater splendor, in exchange for the leeches producing nothing at all of value.

        • 0 avatar

          Stuck: I would agree except you left out one of the reasons the US can’t easily compete on cost – higher wages for employees. The minimum wage does not give the entry level worker a living wage it is argued. They need at least $15/hour. Where does the wage increase come from? Increased prices for the goods produced. It is such a simple concept that those supporting higher wages don’t consider it. If a business owner experiences a 50% increase in their cost of doing business, that increase has to come from somewhere. Yeah, a genuine caring business owner might absorb a small portion of that increase, but most likely that increased CODB will be seen in an increase in the cost of goods and services. You cannot have it both ways UNLESS you’ve found a money tree and they are like unicorns – a pigment of your imagination. (Yellow Submarine reference in case you were wondering and I’m certain you weren’t)

          • 0 avatar
            stuki

            Outside of areas like garment manufacturing, US line workers no longer takes home more real money than even Chinese ones. Taiwanese chip workers are paid plenty higher than either (although I suppose wages won’t be rock bottom in this fab, either…) And in Japan, (where everyone has 50 years of seniority…..) the difference is huge. America is, if not quite yet a third world country, then definitely one with more in common with Latin America than with the current rising industrial giants.

            The big, big, difference in cost, is due to the army of other deadweights feeding at every once-competitive trough in the US. Just as in Latin America.

    • 0 avatar
      notapreppie

      Currently projected to be completed 2025 (so figure it will actually produce chips in 2027).

      Of course, Intel isn’t going to want to make ancient design, low-margin chips like those for the automotive field. They’re going to want to make cash cows like CPUs, GPUs, etc.

      I seriously doubt they are going to want to build the tooling for these truly ancient chip designs because that tooling can’t produce the new cash cows.

      So, no, I doubt this will alleviate the current automotive chip shortage unless automotive suppliers update their designs to use the newer lithographic methods.

  • avatar
    kcflyer

    Billion’s in taxpayer handouts to billion dollar company. To make chips. Maybe pork rinds?:)

    • 0 avatar
      slavuta

      Sooner China takes Taiwan, sooner we can fix America

      • 0 avatar
        redapple

        China ‘s window is after the Olympics.
        It Closes in 2 years.
        ( you see, within one year of election, a president would be tempted to wag the dog. So after that date is a NO GO).

        And they wont wait til President Trump is re elected.

        Brandons brain would overheat and smoke and lock up and do NOTHING if Russia does Ukraine at THE SAME TIME.

        • 0 avatar
          slavuta

          redapple,

          don’t believe what you see on tv. Russia does not need Ukraine. Russian questions are to the NATO, not Ukraine. The current hype exists only in American media and Congress. Nobody preparing for any war in Ukraine. They are happily sucking gas, gasoline, coal and electricity from Russia. Although 600,000 people did not return to Ukraine in 2021 after leaving the same year.

          And China will not attack Taiwan literally. They have 40% of population there who supports the reunification. Why would they hurt people who they want to unite? Process will be the typical and tested. You make pro-unification nationalists take the power and then they will do the rest.
          USSR did it in 1940 in Baltics. And China learns these things, including what not to do.

          Trump or no Trump. Don’t matter. Trump’s push could only speedup the process. I would say, Trump hurt status quo and China might act sooner.

        • 0 avatar
          slavuta

          redapple

          sorry. I have to come back to Ukraine. I am listening this Ukrainian news channel as I do some work here.
          2 anchors standing in the studio and making fun of politicians doing different things. One of them –
          – did you know that parliament banned calling Lukashenko a “president”?
          – may be – for themselves

          then they continue
          – (guy) this is Friday and [switches to russian] Russians are on the border, standing, [switches to Ukrainian] and what do we do? – laugh about our politicians. We’ve totally forgot that we must constantly repeat that any minute Russians must attack us
          – (lady) You just did not read last Zelenskiy’s interview in Washington Post, where he said that Russia may attack Kharkiv. Now, we’re going to go into the studio down stairs and will start with Russian incursion …

          At this point they are both laughing. And they were sarcastic as you understood.

          What does this tell you?

        • 0 avatar
          SoCalMikester

          a good 3rd of ukraine might as well be russia, so who cares?

          • 0 avatar
            FreedMike

            “a good 3rd of ukraine might as well be russia, so who cares?”

            Lots of folks out there would argue that a good third of New Mexico, Arizona and Texas might as well be Mexico. No problem if they just started massing troops along the border for an invasion, right?

          • 0 avatar
            slavuta

            SoCalMikester

            Just to clarify things here. Ukraine is Russia. But not Russian Federation. You better be careful here because there are some people in Ukraine that want to rename country into Rus-Ukraine. There were also calls to call Ukraine a “Russia” and Russia should be called Moscovia

      • 0 avatar

        “Sooner China takes Taiwan, sooner we can fix America”

        If China does it it will declare war against USA, Japan, UK v2.0, EU and Israel. Developed countries may declare blokade – cut China from energy sources and food supplies. China against the rest of the world. I do not think Russia will side with China.

        • 0 avatar
          slavuta

          Inside Looking Out

          I totally disagree with you here

          US does not have the legal basis for this war. While China can shove a handful of documents which state Taiwan = China. 1 country-2 systems.

          Israel and EU? I hope that was a joke. If anything, any motion in EU against China will break EU. And what Ukraine will say? They will have to say good bye either to EU or China. China has everyone by the balls. US, EU and Japan are largest trade partners of China.

          Cut China from energy? Good luck. They already getting oil from Iran. Russia is building another gas pipeline there. And they will build oil pipeline if needed.

          Russia will not fight with China but will give them food and all.

          • 0 avatar

            Russia is not interested in strong and agressive China. Russia is so weak that China can easily take over Siberia with all its resources. It is just matter of time. They will say that it was part of China since ancient times. Same argument Russia makes about Crimea.

          • 0 avatar
            FreedMike

            @ILO:

            Why do you think China would risk nuclear war to invade Siberia? No chance whatsoever.

        • 0 avatar
          slavuta

          Russian doctrine will stop China from doing this.

    • 0 avatar
      bullnuke

      Well, Kcflyer, it worked to get American Honda to build over west of Columbus 40 years ago. And the Honda plant in Anna, Ohio. And the Honda plant in East Liberty, Ohio. And the Honda plant in Lakeview, Ohio. They might be on to something…

  • avatar
    Lou_BC

    The automotive industry grew complacent. They were accustomed to bullying suppliers. You build what we want, when we want and at the price we want.
    They cut chip contracts and expected the “same old same old” to continue.

    • 0 avatar
      redapple

      Lou
      You are correct. I ve been on the receiving end of the GM crush downs many times. They require you to pay your people 1/2 of what they make and make 5% margin.
      Then
      They are happy.

      (After the 7th near death experience, I changed company policy and NO QUOTE any new GM work. Then they demanded WHY. we didnt answer. We had plenty of high margin Mahle and Caterpillar and etc work to cover.) GM- evil company. (FCA and Ford was not near as nasty and unreasonable)

  • avatar
    Jeff S

    Do you really want China to take Taiwan? If so how about Japan, Malaysia, Thailand, South Korea, and the rest of Southeast Asia. Maybe India as well. Maybe China can take over the whole region and move onto the US next. Don’t believe the rest of us concur with your thoughts.

    • 0 avatar
      Arthur Dailey

      Based on @Slavutas’ (using the plural on purpose) historical comments/postings his idea of ‘fixing’ America is the same as when you take your male dog to get ‘fixed’. But then that conforms with how the Kremlin would like to pay back the USA for the fall of the Soviet Empire.

      • 0 avatar
        slavuta

        This is why US is failing – there no adequate thinkers here. You still think that US broke the USSR. You never think, for example, that members of the USSR communist party signed separation. Wait, what? People of the same party decided to break the country? Wait, will dims in DC split the US into separate states? May be USSR failed from inside? Eh, there no brains in the US to think about these things. The party rotted and there was no strong leader to arrest all those dudes and save the state. Gorby is an idiot. He knew that they will lose the country, he said this. But he did not act on it. Weak leader. He had a million of Afghan-tested soldiers who would defend the country from domestic traitors.

        • 0 avatar
          Arthur Dailey

          The economic basket case that was the Soviet Union was broken when the policies of Reagan and Thatcher bankrupted it. It has since become the economic pygmy which is Russia.

          • 0 avatar
            slavuta

            Arthur,

            BS. Many countries had it worse and did not fall apart. USSR needed a strong guiding hand and it would be still there.
            China did Tiananmen and became a great power. In USSR you did not need to hurt regular people, just a thousand or so rotten regional party leaders. China learned from the Soviet mistakes and openly talks about it.

        • 0 avatar
          jkross22

          “This is why US is failing – there no adequate thinkers here.”

          We have plenty of adequate thinkers. We also have many extraordinarily bright minds as well. Unfortunately, most of them are working on the continuing financialization of every part of our life and looking to squeeze $1.15 out of $1.

          Not creating new tech. Not working on amazing healthcare advances. Or they’re working on creating yet another computer fantasy life with Meta.

          We are our own worst enemy.

          • 0 avatar
            slavuta

            jkross22

            I apologize. Let me rephrase.
            “there no adequate thinkers here who runs the f%^&**g country.”

          • 0 avatar
            xtoyota

            Boy, do I agree with you………….We will fail because we are not UNITED
            Just read the $hit from most of these posters

    • 0 avatar
      slavuta

      Jeff S,

      read official documents from the 1970s. Taiwan is China. And faster we get rid of this issue, faster we realize that without domestic production we can’t rely on Chinese chips. There is no question “IF”. Only “WHEN” – soon. You want it or not. Faster it is over – better for everyone.

      Why would China go into Japan or India? In Taiwan they have Chinese peole. In India they don’t. They can’t effectively “re-educate” people in Xinxiang province, and what, they will now need to re-educate population of Japan or even India?

      • 0 avatar
        Jeff S

        China has been building islands near Japan as well as Taiwan. The Chinese have always hated the Japanese especially when Japan invaded China and executed their people (WW II and even before). China will not stop with Taiwan.

        • 0 avatar
          slavuta

          Jeff S,

          you’re too optimistic about China. I still don’t understand the motivation of them to go to Japan – a skinny chain of islands with a lot to offer but also trillions of debt. And unfriendly population.

          While Taiwan is ready-to-live-in-China people. And don’t forget that Japanese can assemble a nuclear warhead faster than Chinese can mount theirs onto the rocket.

          • 0 avatar
            Jeff S

            China is less Communist and more of an Imperialist Dictatorship. The Japanese are dependent on the US for their defense and are not allowed to assemble a nuclear arsenal. Also those skinny islands have a lot of technology that the Chinese do not have and they are within easy reach of China so close that China is building islands near Japan. China is much more of a danger to the World than Russia and we should not be as reliant upon them for our manufacturing.

        • 0 avatar
          slavuta

          Jeff S,

          that is correct. Only China uses a soft imperialism.

          What you might simply had not researched is that Japan and Brazil are near-nuclear states. They have everything they need to assemble the “bomb”. They hold themselves from doing it.
          Japan went a long way from being dependent on US military. Their “defense force” at this point is one of the most powerful militaries in existence – #5 in the world. And with Nukes….

        • 0 avatar
          slavuta

          Jeff,
          for your last comment, there will be 1 country 2 systems.

          Do you know what’s interesting? Around the world we call it Taiwan. But Taiwanese call their country “Chinese republic”. !!!

          • 0 avatar
            Jeff S

            Do you really believe that the Taiwanese people would rather live under a Communist Dictatorship than what they currently have or should it not matter what they want? I myself do not want to live under any dictatorship and if the US were to become one as some people desire then my wife and I would flee. If China has such a great system and if Communism is so great then why are many of its citizens trying to leave and why won’t China let them leave. Are you a citizen of the United States or are you a Russian posting your pro Putin remarks on this website? As imperfect as the United States of America is I would rather live under our current system of government than a Communist dictatorship or any dictatorship regardless if it is a benevolent one. I don’t approve of everything the US does but I would rather live here than in Russia or China.

        • 0 avatar
          slavuta

          Ha-ha!! Jeff.. You’re right in many senses. I also think that America is still better than Russia, although it is becoming more all the same. In US though there is one big plus – I believe, if anything goes wrong here, states can leave the union. Or at least soft-leave. Like Florida does already. For example, federals make a law and state says – not here, bye. I like this.
          Now, if you want to flee for freedom – there is nowhere to go. It is either certain US states or Russia. Switzerland is more or less. All other European countries are back to fascism. Liberal, medical fascism but… hey, just check the millions of people protesting there, and how police beats them up. Is this from a good life? Although Hungary!! Yes, Hungary is good but you will need to be a Christian and better change your name to something like Jozsef or Istvan. You want to blend-in there, that is not America.

          Specifically for Taiwan, I in my post never argue WHAT is better for Taiwanese. I only state 2 facts. 1 – ONLY around 53% of Taiwanese are hard-core pro-independence. This is all you need to know. This is the number Chinese mainland will work with. 2 – China started preparations for unification. I mentioned their official policies of prosecution etc. And I mentioned technologies that have been used to change the balance. China is working on it. And it works!! Every year there are less states that recognize Taiwan as independent nation.
          “Taiwan just lost another diplomatic ally and the 14 it has left only account for 0.2% of global gross domestic product, according to calculations based on World Bank data.”

          Chinese are not locked in China. They are all over the world! Before covid, they were the biggest traveling group.

      • 0 avatar
        dal20402

        If you ask the Taiwanese if they want to join the PRC, they will give you the loudest “NO” you’ve ever heard, and if the PRC invades they will be up against guerrilla warfare of the sort we haven’t really seen since the US was hounded out of Vietnam. The Taiwanese may be “Chinese” but that doesn’t mean they want the slightest association with the CCP. Xi’s decision to lord it over Hong Kong with thuggish repression has just solidified the resolve of the Taiwanese not to suffer the same fate.

        Whether Xi knows that, or whether his personality-cult flunkies hide it from him so that he doesn’t shoot the messenger, is the question that will determine whether the PRC tries to invade Taiwan or not.

        • 0 avatar
          slavuta

          “if the PRC invades they will be up against guerrilla warfare”

          did Hong Kong do any “guerrilla warfare”? Did anyone in Crimea do “guerrilla warfare”? Taiwanese army is in $#!t,. they are 60-80% complete. Nobody wants to fight. They will show on TV some dude from Taiwan who ran to US and who says, “we are Taiwanese, we’re not Chinese” and you love to hear these. But reality is that China prepping for peaceful takeover. What they said? – “if you publicly support independent Taiwan you will be prosecuted when unification is completed”. When China will surround Taiwan with 300,000 fishing boats loaded with Chinese soldiers, most important thing for the current government will be, not to miss the last flight.

          • 0 avatar
            dal20402

            The Taiwanese are entirely familiar with fighting with the CCP. They lost the last fight because they bit off more than they could chew. They are resolved not to lose this one. This is not Hong Kong.

            slavuta, we get that you want to promote dictatorship and repression everywhere you can, but there are some people in the world who are just not into that stuff, and the Taiwanese are at the top of that list.

          • 0 avatar
            Jeff S

            Big difference in Hong Kong and China in that the British had a 99 year lease from the Chinese for Hong Kong which ended in 1997. Those in Hong Kong that had money left before Hong Kong reverted back to Chinese rule. Most in Hong Kong had it much better under the last few decades of British rule. As for Taiwan it was occupied by the Chinese fleeing Communist rule which separated itself from the People’s Republic of China because they did not want to be Communist. Taiwan will not willing go to the People’s Republic without a fight and Taiwan is doing quite well under a democratic government and does not want or need China. Just because Taiwan has mainly people of Chinese descent does not mean they want to be part of a Communist dictatorship. There are a lot of people of Chinese descent in San Francisco and Vancouver so does that mean those cities should be taken over by the People’s Republic? Taiwan is an independent nation who does not want to be taken over by China.

          • 0 avatar
            Art Vandelay

            The relative strength of a traditional Army is not a huge factor in Guerilla Warfare…or did you miss that lesson when you did your bit in Afghanistan?

            And if we did honor our commitments to Taiwan and defend them, I doubt your cries of “that’s not legal” would carry much water. I mean we could just as easily recognize Taiwan as the one China and say mainland China is in rebellion.

            Furthermore, a blockade isn’t really an act of war nowadays…we could call it a “quarantine”. You remember how that worked, right? When Kennedy made Kruschev his b!+ch.

            In such a scenario the relative weakness of the Chinese blue water Navy would rear it’s ugly head pretty quickly and they had better have a way to feed all those folks and supply energy via overland routes.

            If this goes down we’d likely just park the Pacific Fleet out between the folirst and second Island chains. Very easy to justify since their are a bunch of US citizens on Guam, Saipan and other territories there. China wouldn’t be able to do a darned thing and if they did, well bam…your war just became “legal”

          • 0 avatar
            slavuta

            Art, Art Art

            I thought you were well trained American soldier but you sound like just another sofa…
            Afghanistan guerilla warfare is when you have Pakistan, you penetrate, hit and run. And your enemy, traditional army can’t cross. Iran and China also helped bearded guys.
            Taiwan is an island. Chinese will finish guerillas in 5 days.
            Let me take you back to 1989. Soviets withdrew with dignity and with no rush, nearly stayed longer, actually. And the government they left behind lasted 3 years. Soviets did not leave because they had no other choice but rather because Reagan told Gorbachev that US will not fill the space.

            “Kennedy made Kruschev ..” – hahaha Khrushchev forced US nukes out of Turkey and this was the goal of Cuban act. Operation Anadyr. Position missiles in Cuba and then exchange removal for removal from Turkey.

            Everything else – how US will defend Taiwan, or whatever, non of my business. But remember, some victories are pyrrhic victories.

          • 0 avatar
            Art Vandelay

            We pulled our Nukes out of Turkey only recently because of the attempted coup. We don’t tend to park them in countries with unstable governments. Besides, they are now parked in a former Warsaw Pact nation much closer to Russia’s border. Not exactly a PR win for Vlad. The Jupiter missiles I believe you are referencing were obselete and as we saw recently, we put newer ones right back so yes, Kruschev = Kennedy’s b!+ch.

            As Taiwan is an island yes, that poses significant challenges for an invading force you seem to gloss over. You have to carry that army via air or sea to the island. We have been supplying Taiwan with defensive weapons for just such a purpose. We would step that up I am sure in an invasion…no matter who is President big Defense is going to want in on that action.

          • 0 avatar
            slavuta

            Art,

            No. At that time, for Khrushchev it was important to remove the missiles. And he achieved that. What happen later did not matter for your argument.

            https://nationalinterest.org/blog/buzz/incirlik-air-base-has-become-risk-united-states-175888

            The only nukes that could be carried into Russia were plain bombs. And Russia did not care much because for each plane they had 10 missiles. Besides, US will not be able to do this without Turkey’s permission. And if you remember, Turkey blocked access to the Black Sea to the British ships that were trying to come and “save” Georgia in 2008.

            For Taiwan, China is already in process of peaceful unification through its supporters in Taiwan. Not fact that they will go all the way with military. They will put money on supporters withing Taiwan.

        • 0 avatar
          slavuta

          “The Taiwanese are entirely familiar with fighting with the CCP.”

          dal20402,

          Actually, when “Taiwanese” fought CCP, they were not Taiwanese. And they were on same side with CCP initially but later they fought over internal affairs. Chiang Kai-shek felt that CCP decimates his base and turned his army against CCP. And Kuomintang had an advantage and still lost to CCP.

          “you want to promote dictatorship and repression”

          Chiang Kai-shek was one decent dictator. And then if you think about Taiwanese passed and recent passed, may be you find that whatever is going on there is not a real democracy. Actually ALL Asian so-called “democracies” are not what you think like European liberal democracies. And in Japan, same party rules since 1955? or so. And it doesn’t bring any emotions in you. But if same party rules in Russia for 22 years, this is a problem, right?

          • 0 avatar
            JD-Shifty


            The relative strength of a traditional Army is not a huge factor in Guerilla Warfare…or did you miss that lesson when you did your bit in Afghanistan?

            And if we did honor our commitments to Taiwan and defend them, I doubt your cries of “that’s not legal” would carry much water. I mean we could just as easily recognize Taiwan as the one China and say mainland China is in rebellion.

            Furthermore, a blockade isn’t really an act of war nowadays…we could call it a “quarantine”. You remember how that worked, right? When Kennedy made Kruschev his b!+ch.

            In such a scenario the relative weakness of the Chinese blue water Navy would rear it’s ugly head pretty quickly and they had better have a way to feed all those folks and supply energy via overland routes.

            If this goes down we’d likely just park the Pacific Fleet out between the folirst and second Island chains. Very easy to justify since their are a bunch of US citizens on Guam, Saipan and other territories there. China wouldn’t be able to do a darned thing and if they did, well bam…your war just became “legal””

            and you’re OK paying for all this. but not for roads, bridges and healthcare for US citizens.

          • 0 avatar
            Art Vandelay

            I’m down with roads and bridges. As it is the law you are supposed to have healthcare I don’t see it as my problem.

            And you are already paying for the Pacific Fleet and yes, the US citizens on Guam, Saipan and the other Pacific Territories deserve that protection as much as Puerto Rico or any of the other US Territories on that side of the world deserve a bunch of aid after a hurricane.

            Infrastructure and honoring our commitments aren’t mutually exclusive.

          • 0 avatar
            Art Vandelay

            And yeah @JD, I have no issue helping the Taiwanese in a fight to not be absorbed by a Communist dictatorship. But as Taiwan is an island on the other side of the Pacific and their citizens can’t just walk to the Southern Border I am not shocked you have no interest in helping them. You are only interested in the ones that will do something for you…like pick lettuce for 2 bucks an hour. What a Disgrace.

        • 0 avatar
          slavuta

          dal,

          this is [another] example of reality vs wishful thinking

          “December 7, 2011
          Today’s Moscow News quotes Senator John McCain as warning Putin that he could meet Gaddafi’s fate. I was so shocked by such an incendiary remark from a former presidential candidate that I checked out the alleged threat on McCain’s Twitter feed. Sure enough, yesterday McCain tweeted,

          “Dear Vlad, the Arab Spring is coming to a neighborhood near you.”

          Later (presumably after this Moscow News article appeared), he tweeted again, “The Post agrees: ‘Spring is in the Russian air’” with a link to a Washington Post article reporting on demonstrations by Russians opposed to Putin.”

      • 0 avatar
        mcs

        What about indigenous people claiming parts of the US. Or even Mexico taking back Texas?

  • avatar
    redapple

    Hey
    What ever happened to Jack?
    He vanished from R&T a while back.

  • avatar
    28-Cars-Later

    “Construction is scheduled to commence later this year with operations starting in 2025.”

    So, no chips till 2025 eh? Salsa stocks will plummet.

  • avatar
    pmirp1

    Based on my own personal recent shopping experiences, if you want a in demand vehicle, from either domestic or import brands, be prepared to pay market adjustment at least through end of year 2023.

    There is still no supply. There is pent up demand. Assuming supply issues get resolved by end of 2022, all supply can do is try to keep up with pent up demand from past three years during 2023.

    There will be market adjustments on in demand vehicles, at least through beginning of the year 2024.

  • avatar
    islander800

    Too little, too late. Geopolitics is moving way too fast for this to make any difference. By the time this plant is up and running, Communist China will likely have made its move to bring Taiwan, America’s biggest supplier of chips, “back” into the fold. There’s nothing the West can do to stop this, as Xi has made it a foundational goal of his “dictator for life” regime. Just like Russia re-exerting Russian influence over Ukraine, the West can only stand by as anything amounting to physical resistance would likely lead to all-out nuclear war. All to say, at that point, chip shortages in new F150s will be the least of our concerns…

    • 0 avatar
      05lgt

      Another way to look at it is that Russia can’t take Ukraine and China can’t take Taiwan because it would likely lead to all-out nuclear war. Taking MAD out of it, Russian equipped forces have not done well on modern battlefields and if China has a solution to US submarines it’s untested at best.

    • 0 avatar
      pmirp1

      It depends on leadership in America and the west.

      Attack on Taiwan is attack on the western system. Over night, America and her allies, can stop importing and trading with China completely. That will bring China to her knees.

      China will then have to barter her goods with the likes of Iran, African countries and Russia. Good luck with that.

    • 0 avatar
      28-Cars-Later

      Taiwan remains to be scene and has a much bigger impact on the overall world so I expect things to be handled well because of all players involved. Ukraine only impacts natural gas to Europe and the CIA started the current issue by overthrowing the legitimately elected government of Yanukovych during Euromaiden in later 2013/early 2014. The line of the Soviet sphere of influence may have to be drawn somewhere, but installing a US/EU/Israeli shadow government right on the border is egregious and unnecessary to the security of all Western parties. The same goes for the proxy war in Syria and the Western backed ISIS, Americans on the ground do not care and are not impacted by events in Syria or Ukraine (and likely an attempted Western coup in Kazakhstan). We the American people do not want what poses as our government involved in these regions.

      • 0 avatar
        slavuta

        28,

        I [and not only I] don’t think that Kazakhstan was a western coup. It was an internal thing. A clan war. It is not without participation of the $$$ from the west. You can go to the US State Department website and see that US allocated nearly a $1M for education of groups in Kazakhstan on governing. But you never know where this group directs money later.
        28, decapitations, people with beards. Guns for hire and not from the best of them.
        Plus what is West’s interest to disturb energy sector there? 80% of gas and oil industry is taken by western companies. And huge % of world’s uranium supply is there. Do you think anyone in London is dreaming that someone takes some Uranium and brings it into London?

        • 0 avatar
          28-Cars-Later

          Control of future pipelines comes to mind. Could also be an extension of the boxing in strategy the Western powers have been employing for years now. Could have simply been at attempt to see how Moscow responds to a new crisis on its border as part of planning future Ukraine strategy… or none of those things. Given the reemergence of conflict in Ukraine the timing seems suspect.

          • 0 avatar
            slavuta

            @28
            you’re completely right! Timing is suspicious here. Also – 2 birds in one – China Olympics and US/Russia talks.
            And yet, follow what is going on. Nazarbaev, his clan, his children, his disappearance. KGB arrests, firings. Suddenly, Kazakh KGB knows how to arrest people.
            My scenario is this. Nazarbaev leaves Tokaev as president and becomes chair of state security. Then turns around and turns on Tokaev. Police, special police are totally incapable, they don’t know who’s side to take. Tokaev is not Yanukovich. He calls Putin, they call-in CSTO and planes with soldiers start to arrive. Suddenly Kazakh police and special police see who has the upper hand and join in. and there is no problem to kill anyone who is armed. Meanwhile Tokaev goes Erdogan on all his generals who can’t be trusted anymore. Nazarbaev disappears.
            Now Nazarbaev appears again. The deal is done. Nazarbaev will live on quietly. His relatives will drop all the positions in the government and GTFO to Dubai or London.

            And BTW, if you would listen to Alexander Peske, he tells stories how these Kazakh clans go to Switzerland and live in the same lux hotels. Meet in the lobby and don’t talk to each other.

          • 0 avatar
            FreedMike

            @28:
            “Pipelines”

            You just made an excellent argument for switching to renewables. Russia’s a bully with a LONG history of invading its’ neighbors for no good reason, and it depends on petro-money to make it all happen. Switching to renewables would f**k Putin real good, and he knows it.

          • 0 avatar
            Jeff S

            Agree a good argument is made for switching to renewables let Putin sit on oil and gas reserves with a dwindling demand. If we and Western Europe only have the fortitude and determination. Putin wants to put together the former USSR the only difference is not calling it Communists but it’s basically the same. Unlike slavuta most Americans are not that anxious to be part of a dictatorship whether it be Putin or Communist China nor our Allies as well. Even if China got Taiwan it wouldn’t be as peace a transition as Hong Kong. Maybe if Trump is re-elected he will go along with whatever Putin wants since he admires dictators not saying that the current President is so great but Trump would like to be el Presidente for life and the current Republicans would not stop him. As for chip making we as a country need to break ourselves for reliance on China and the last thing we need is to be dependent on Russia for our microchips. At least Mexico is part of North America and is not a dictatorship. Glad to see a plant being built in Ohio but it will take several years for it to alleviate our chip shortage.

          • 0 avatar
            28-Cars-Later

            @Freed

            “Renewables” do not scale very well and it would be impossible to completely switch. Its difficult for me to think ten years out, but its possible the more distant future is what’s at stake (LPG should the US need it). But I do know the US is selling LPG to Europe right now because they are trying to get away from the Soviet nat gas. So on one hand you could argue its a US national security issue but on another US citizens are not impacted by Moscow’s nat gas policies toward Europe and eventually PR China.

            @Jeff

            “Putin wants to put together the former USSR the only difference is not calling it Communists but it’s basically the same.”

            That was correctly predicted over 40 years ago along with the fact the KGB/CPSU would infiltrate and destroy the West from within. This is why I still refer to the Russian gov’t as the Soviets (not only myself, Secy Rice and former president GW Bush did the same because they knew).

            If the PR Chinese are smart, they would be infiltrating Taiwan now the way the Soviets did the West. In a short time, perhaps only a generation, Taiwan could be “reunited” through “voting” without a shot fired.

            “As for chip making we as a country need to break ourselves for reliance on China and the last thing we need is to be dependent on Russia for our microchips.”

            I agree and it was in part because of Brandon this changed, he being a signatory to NAFTA and GATT in later 1994 (GATT later becoming the WTO). I doubt the Soviets are going to become a world force for chip manufacture, but should the US want to get serious its going to be years from now until there are results. The PR Chinese gov’t will have leverage in this area for some time.

            If Brandon’s admin were in any way for American interests, they would be waiving as many requirements as would be reasonably possible in order to get more production in inventory, but they do the opposite and reapply the Obama admin’s bad fuel economy policies. This is beyond politics -especially since it was the Obama admin’s policy not his- its deliberate sabotage.

          • 0 avatar
            slavuta

            “most Americans are not that anxious to be part of a dictatorship”

            I came to America to be a self-determining person. It is naturally born Americans who turn this country into socialist hellhole with gov ruling their lives. Pelosi, Biden, AOC – they try to end the federalism and Americanism, Jeff, not I. He-e-e-e-y – wrong address. This is American companies that soldout US to China, colleges and elites who soldout to Soros groups, not I… Jeff??? Where are you?? Hello?

            “At least Mexico is part of North America and is not a dictatorship”

            This is where you are EXACTLY correct. In dictatorship such unruliness and lawlessness, gangsters, murder and drug trafficking like in Mexico would not be possible. If you note, countries with dictatorial regimes have pretty strong set of rules and less crime. And in Libya there was a dictator under which Libya was the riches country in Africa with the richest population. And Saudis also a dictatorship, can you give me analysis – Saudi King vs Putin?

      • 0 avatar
        slavuta

        “the CIA started the current issue by overthrowing the legitimately elected government of Yanukovych”

        @28

        I just hear presser with Blinken. May be you should tell him what you said here ^^. Because he said that Russia is trying to topple Ukrainian gov. As I say, we will eat dirt until people like this are in management.
        BTW. US meddling in Ukraine elections since 2000. Check how 2004 was done. Yuschenko was [sure] “poisoned” [again!]. Only 19 years of investigation did not find any evidence of that. But the news of the poisoning created rage against pro-Russian candidate and … you know the rest. Extra round, etc.

        • 0 avatar
          28-Cars-Later

          I don’t consider myself an expert on the region or the situation, but sadly I do have more expertise in foreign policy than this awful Secy of State (seriously I’ve never seen one so bad at this job, Hillary was actually more competent).

          Oddly enough no one in the US that I have seen has not pointed out the current pretend president had his fingerprints all over the 2013/14 Ukraine coup. There is legitimate journalism happening here (beyond wingnut theories) yet, I haven’t read a thing. Tell me again all US media doesn’t take its order from the State.

          • 0 avatar
            slavuta

            28,

            you are waking up bro. Media was through the years an agent of the gov. May be not to the level of today. And Hollywood has been working for the DOD and the gov, just like Soviet film studios.

            When did you hear last time that US is responsible for Ayatollah in Iran? Yes! US and UK pushed Shah to allow Khomeini to come to Iran. And he overthrew the gov. I am hysterical as I write this. This is Carter for you, another trunk slamming POTUS, he did this.

            Although on the internet you can find some truthful pieces.
            https://www.cato.org/commentary/americas-ukraine-hypocrisy#

          • 0 avatar
            slavuta

            28, forgot

            Greatest Soviet spy was Kim Philby. Read how he became important. Its the media. From a talented newspaper analyst to the British intelligence. Because intelligence always used newspapers/media for their business.

          • 0 avatar
            mcs

            “Greatest Soviet spy was Kim Philby.”

            I’ve always had a greater admiration for the analysts behind the scene. It’s one thing to acquire the information, but processing it can be more difficult. There are lots of aspects to that. Data from field agents has to be validated. Even once it’s validated, is it something meaningful? Let’s say they get plans for a weapon. Are they fake plans? Is it buildable? What’s the performance going to be like? What’s the production capacity and at what rate can they build them? How would it impact a conflict? The hard part of intelligence is the analysis of information and not so much the gathering of it.

    • 0 avatar
      slavuta

      “Just like Russia re-exerting Russian influence over Ukraine”

      @islander800

      Actually, Ukraine is facing much bigger issue – Russian disinterest in Ukraine. And I did not make this up, I only agree with this. This is straight from Ukrainian analytics.

      Russia already disconnected its industries from Ukraine. And if Russia is completely out of economical and political life in Ukraine, Ukraine loses its attractiveness to the West. Russia right now talks to the NATO and not Ukraine. If Ukraine will say today, “ok, we are going to be neutral like Finland, no NATO here”, then what Ukraine will sell to the West? The only reason why West is still in Ukraine is Ukraine’s proximity to Russia and its willingness to sell itself for $$$. I can tell you even more. If Russia comes tomorrow with Billons that it will permit to be stolen, Ukraine will change colors in a heartbeat. But Russia knows what drain Ukraine is and why not let it drain the West? Keep pumping money there, Washington and London!!!

      • 0 avatar
        Arthur Dailey

        “We want to remind the great powers that there are no minor incursions and small nations,” Ukrainian President Volodymyr Zelenskyy wrote in a tweet Thursday morning. “Just as there are no minor casualties and little grief from the loss of loved ones. I say this as the President of a great power.”

        Of course they did not report that in Russia.

        • 0 avatar
          slavuta

          Arthur

          contrary. They had this on every channel, in Ukraine and Russia. In fact, I love to listen to the analytics on these things from both sides.

          Zelenskiy has a Napoleonic syndrome, I think. I don’t know what great power he is talking about because all the power, literally, the power – gas, gasoline, coal and electricity he gets from Russia and Belarus. And military he gets from whatever US and UK can bring. He lost 600,000 citizens in 2021. Yea, in USSR Ukraine was power. Even had a separate seat in UN. 51 million people – decent population. And now what – 30-32 million?

    • 0 avatar
      RHD

      Part of the solution to the current supply chain kinks is for EVERYONE to get vaccinated and boosted. When the hospitals are at half capacity and Covid is usually nothing more than a cold, due to multiple vaccinations, then the ports and factories can open up again. The anti-vaxxers and unvaccinated halfwits are partly to blame for the current state of the economy. China completely locking down entire cities also throws a wrench in the works.

      • 0 avatar
        slavuta

        I’ve read a lot of stupid things and this just one more of them.

        • 0 avatar
          Arthur Dailey

          CDC director Dr. Rochelle Walensky said on Dec. 29 that unvaccinated people are about 10 times more likely to test positive than vaccinated people, 17 times more likely to be hospitalized and 20 times more likely to die from COVID-related complications.

          So who is posting ‘stupid’ opinions?

          • 0 avatar
            slavuta

            If you are going to quote activist Rochelle Walensky here, I am going to dump your ideas into the same “stupid” bin.
            This is a person who is been lying one lie after another and you’re still quoting her? Why don’t you go straight for Sotomayor quotes? They are even more ridiculous.

          • 0 avatar
            Lou_BC

            Canada fully vaccinated 83% of total population.
            COVID-19 deaths 32,295 or 85 per 100,000 people (total population) or 850/million.

            USA fully vaccinated 63%.
            USA COVID-19 deaths 865,000 or 262 per 100,000 or 2,620 per million.

            USA death rate triple that of Canada’s when adjusted for population.

            Serious vaccine adverse event”:
            Canada 0.376 per 100,000 (3.76/million)
            USA 0.5 per 100,000 (5/million)

            It’s basic math. Vaccines make a big difference.

          • 0 avatar
            28-Cars-Later

            You can’t really believe anything they say at this point, in fact I tend to assume to opposite until contradicted by multiple other sources/factors.

          • 0 avatar
            Arthur Dailey

            And there we have it Slavuta, demonstrating that he has no use for reliably collated statistics that have been made public and are easily verified. Instead he/they repeats the same old ‘conspiracy theories’ and belief in ‘strong man government’ that have left Russians to live under autocrats and kleptocracies.

            America’s rise to power can be attributed to Americans leaving behind the traditions, superstitions and beliefs of their ancestral homes and instead believing in science, modern medicine, progress, and the peaceful transfer of power/government.

  • avatar
    JD-Shifty

    “Sooner China takes Taiwan, sooner we can fix America”

    I don’t want Americans dying and going broke over Taiwan and Hong Kong. So somewhat agree

    • 0 avatar
      slavuta

      Americans will be dying when China will ban dollar transactions. US will not fight over Taiwan. Pentagon war games, one after another showed that US loses to China in the South Pacific theater. I just don’t understand why we keep sending jet fighters there. Probably because we feel that if we don’t sell them to Taiwan now we will never sell them to China.

      • 0 avatar
        Superdessucke

        Well, that’s eventually going to happen. China not taking dollars. But what does going to war over not taking dollars do? What would the objective be?

        • 0 avatar
          slavuta

          Right now, Biden’s office objective is to distract from the real issues – failing dollar, dead economy, internal crisis, etc.
          Biden’s objective is to tell us that he has done more than any other president in history, in the first year in the office.
          War over Taiwan will contradict basic Sun Tzu rules. Not sure if generals will buy into it. Although Biden’s general might as well..

          • 0 avatar
            Superdessucke

            Relax. Things will be fine. Here…

            https://www.cnn.com/2022/01/21/opinions/joe-biden-first-year-is-not-a-failure-powers/index.html

            It’s because of the pandemic. The President can’t be blamed, I’m sure CNN made that clear when Trump was in office too.

        • 0 avatar
          slavuta

          “Americans are understandably fatigued as we enter the third year of the pandemic”

          He said, he will end the virus and not the normal lives of Americans. When he was running, did his handlers know that they have created a monster? Its like, if you marry a woman from Vietnam and she has 5 brothers and sisters, you better know that you will be supporting all of them.

          As Chinese say, “we’re leaving in interesting times”. And in China that is a curse.

          • 0 avatar
            Superdessucke

            As of February 1st the CDC will no longer require hospitals to report covid deaths. I think they’re gonna start backing away from this, at least in the swing states.

            I submit this was always political. I think if Hillary would have been President and she was facing a Trump challenge in November 2020 after a tight ’16, you would not have seen the lock downs.. Problem is the Democrats overplayed it. So you’ll see them start to back off until November

          • 0 avatar
            Superdessucke

            It was actually well played originally. I don’t think without the Covid the Democrats would have been able to field a candidate to beat Trump. Problem is they overplayed the sell and bought into their own BS. Obviously, the vaccine and lockdowns didn’t fully work. So now, they will just say everything is fine and we can now live with it, thanks to Biden

          • 0 avatar
            Superdessucke

            Do you think that if Hillary would have been President in early 2020 and was about to face off in a rematch with Trump in November we would have had the shutdowns? No right or wrong answer. I’m just curious as to what you think.

          • 0 avatar
            slavuta

            I think, a lot would be different. sure. Presidents must stop listening to the press.

        • 0 avatar
          slavuta

          I knew from the start that this is nothing but manipulation of the mind. They changed rules of death counting, definition of vaccinations and WHO definition of pandemics.
          And now, anything they do is nothing more that pre-election double manipulation.
          Their achievement is a mass psychosis. That they have achieved.

  • avatar
    FreedMike

    All long term stuff, so it won’t help the current situation, but it’s a start.

  • avatar
    fazalmajid

    No. Nobody makes new fabs for the auto industry, just as no one is creating new plants for buggy whip manufacturing. It uses obsolete processes that were amortized years ago, along with other low-end uses. Using new equipment would be loss-making given the low margins.

    I have zero sympathy for the car makers. UMC, Taiwan’s no. 2 chip maker, offered them to build a new line in a partially built fab in exchange for a $1B purchase commitment (vs. the $20B a 5nm fab costs). They didn’t walk the talk and chose instead to lobby the Biden administration to pressure the Taiwanese government to allow them to cut the line.

    • 0 avatar
      28-Cars-Later

      “They didn’t walk the talk and chose instead to lobby the Biden administration to pressure the Taiwanese government to allow them to cut the line.”

      Could you expand on this please?

  • avatar
    ToolGuy

    I highly recommend watching this from beginning to end:

    https://youtu.be/UU21raKu94U

    (I watched most of it on ye olde kindle fire at the gym on Cardio Day. Longer press conference = more cardio. Win.)

    • 0 avatar
      28-Cars-Later

      If I wanted to watch a clown, I’d go to the circus.

    • 0 avatar
      jkross22

      LOL, if you’re trolling, well done. If you’re serious, you need to be less serious.

      • 0 avatar
        ToolGuy

        Regardless of your opinion of the current President, I think it’s helpful sometimes to get an unfiltered view (rather than some media clown’s interpretation).

        He specifically addressed automobile computer chips (and why those of you who pay taxes should subsidize their production). The comments on inflation were um… illuminating (yes I will pay more for fuel and meat, but my daycare expenses will be lower [except I don’t have any daycare expenses]). And the tone and body language (especially in response to some of the more directed questions) gave some real insights into how the man thinks – which I believe (you may disagree) is helpful for knowing where we are headed [e.g., midterm elections].

        There were some gems:
        – “Look, maybe I’m kidding myself” (that right there is a keeper)
        – The mechanism by which the Biden-Harris Administration is already saving me 15 cents a gallon on each and every gallon of gasoline
        – Exactly why the former Senator can’t get anything through the Senate
        – Some genuine insights into the current political stalemate

        It was worth the time to me. If you are busier than me [who isn’t] and prefer a searchable text version:
        https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/01/19/remarks-by-president-biden-in-press-conference-6/

        (Biden isn’t allowed to speak to me directly very often – when he does, I think it’s worth a listen.)

    • 0 avatar
      slavuta

      Especially I like the way he claims the unemployment drop. When by state data shows red states 2-3% and blue 6-7%. So, if red states followed CDC, Biden and all other clowns out there, he wouldn’t even have that to brag about.

  • avatar

    The news is about making chips in USA and not about war between China and the rest of the world.The fundamental fact about chip making is that it is to expensive to do in USA. There is no way around it other than subsidize it by tax payers money. Solution might be to make it in Mexico e.g. or Chili.

    • 0 avatar
      slavuta

      They could make it in Russia. A single container costs $3000 to ship and can contain millions of chips. And there are plenty of well educated people to work on that plant. Russia in fact is 1 of only 5 countries that produces micro processors.

      • 0 avatar
        Jeff S

        Better to make the chips in Mexico which is closer. Also most of the auto companies have plants in Mexico which would decrease shipping time.

        • 0 avatar
          slavuta

          In Mexico there is no educated population to do these jobs. That was one of the complaints/justifications from the Apple corporation – US does not have a qualified labor force to assemble iPhones, they said. In Russia this is not an issue. There are plenty of university educated people there. And they already produce chips for Huawei, parts for iPhone, etc.

          • 0 avatar
            mcs

            “In Mexico there is no educated population to do these jobs”

            That’s not true. All you need is a secondary education to be a semiconductor tech and 45% of their population meets that requirement.

          • 0 avatar
            Jeff S

            @mcs–My point exactly these are not the latest generation of chips and do not require college degrees especially PHDs. The labor cost would be a lot less compared to the US and if you factor in shipping costs especially from the Far East they are a lot less. We don’t need Russia to produce microchips and why would we want our industries to become dependent on another dictatorship especially with a the volatile situation with Russia in Ukraine. Don’t want to have the US as dependent on Russia as we currently are with China.

        • 0 avatar
          slavuta

          I was wrong. I remembered now that Mexico already produces electronics. So, here is from Mexico itself on the subject

          “Chips manufactured in Mexico are those that involve massive production and less advanced technology that are often used in electric appliances, while the country designs and validates some of the most advanced semiconductors on the planet, said Cardona. While solutions will not come in the short term, future thinking and immediate action are required.

          “All countries and their governments are clear that this is going to take time. This is one of the most complex engineering processes of humanity and it is not something simple that will be solved in the short term, but the important thing is to take decisive action now,” said Cardona.”

        • 0 avatar
          slavuta

          Jeff S

          US is already somewhat dependent on Russia. If it wasn’t, why Trump and Biden, both talk to Russia/Saudis ??

          What about titanium for US aviation? Nuclear fuel? Replace Russian oil?- then need to go to Venezuela.

          The U.S. goods trade deficit with Russia was $16.5 billion in 2019, a 16.1% increase ($2.3 billion) over 2018.

          The United States has a services trade surplus of an estimated $3.4 billion with Russia in 2019, up 6.3% from 2018.

          • 0 avatar
            Jeff S

            Yes but why should we become more dependent on Russia? A major reason we talk to Russia is to protect the Western European countries. Canada also has huge uranium reserves. Why become more dependent on Russia for anything? We need to protect ourselves as a country from those countries who are not our friends and becoming more dependent on Russia and China is not good for us in the long term. Russia is vulnerable because they are mainly dependent on natural resources. Russia might not be the USSR anymore but Putin wouldn’t mind putting back another USSR.

            Additionally why do we need Russian oil when we have large reserves of oil and gas in the US? Maybe coming from the area of the World you are more sympathetic toward Russia but most of us are not and we remain distrustful of Russia.

        • 0 avatar
          slavuta

          There are things that Americans [I guess] get with the milk of their mothers

          ” A major reason we talk to Russia is to protect the Western European countries.”

          Russia never posed any danger to the W.E. Countries. When USSR was fighting Germans and came deep into Europe, there was a proper concern that communism might spread, especially that communism was already high in all those places. In Germany Nazis ruthlessly eliminated it but France, Italy, Greece, Poland, Yugoslavia had huge following. There is much more to this, so cutting it short, US/UK worried to stop communist ideology and both, west and USSR needed a buffer. Hence they agreed on influence. Read Churchill “naughty paper”.
          With Russia, spread of communism is no longer a concern. US pushes this agenda for military industrial complex. In Europe nobody sweats this but since everybody is included into dollar system, they must follow. Remember when Trump was crying that Europeans are not paying NATO fees? Right. If Russia was a thereat to them they would be buying more tanks. Finland, Sweden and Austria don’t rush into NATO and Bulgaria and Hungary don’t want to host foreign troops. This should tell you how much fear of Russia is around Europe.

          Canadian Uranium… There is not problem. Only the problem that Russian 20% of market share keeps prices low. If you replace that with Canadian, companies will make a deal and increase prices. electricity will be more expensive. This is only the problem – monopoly!

          “countries who are not our friends” – this is a big issue. There are less friends. $$ is the only holding thing. You would be surprised.

          “Russia is vulnerable because they are mainly dependent on natural resources”

          This is a very old and inaccurate estimation. I heard myself just another day on Fox – Russian economy is 58% oil and gas. Funny. In reality – 11% comes from mining.

          “Russia might not be the USSR anymore but Putin wouldn’t mind putting back another USSR.”

          Putin (to Russians): “If you don’t miss USSR you have no heart. But if you think that you can recreate it, you have no brain”
          I: people from all over xUSSR go to Russia for work. Imagine if Russia would take these countries in. They would have to feed them. No way Russia needs or wants it. There will be a union, like EU with Russia and Belarus already joined. But it will not be like USSR, with 1 party, 1 ideology and central government in Moscow.

          “Additionally why do we need Russian oil” – because all oils are different. And are used for different purposes. We don’t have in US same oil as Venezuela/Russia. When Trump cut down Venezuela imports to 0, we started increasingly import Russian ‘Urals’ oil. And today we’re at all time high importing Russian petroleum products. Including natural gas. To get rid of it, you need billions in investments. And tell NY state to let pipe from PA to MA. This information is public and available on the site of “US department of Energy”

          • 0 avatar
            Jeff S

            @slavata–You really don’t know that much about oil. There are different grades of oil and Venezuela oil is high sulfur which means it cannot be refined in most refineries and when it is refined it produces less refined product. Your highest quality low sulfur crude is Brent North Sea and Texas Sweet. All oil is not the same.

          • 0 avatar
            Jeff S

            In 2011 the United States mined 9% of the uranium consumed by its nuclear power plants. The remainder was imported, principally from Russia and Kazakhstan (38%), Canada, and Australia. Although uranium production has declined to low levels, the United States has the fourth-largest uranium resource in the world, behind Australia, Canada, and
            Kazakhstan.

            https://en.wikipedia.org/wiki/Uranium_mining_in_the_United_States

            Seems like we should be mining more of our own uranium since the US has the 4th largest uranium reserves instead of importing 16% from Russia. Why should we be supporting Putin.
            https://www.eia.gov/energyexplained/nuclear/where-our-uranium-comes-from.php

        • 0 avatar
          slavuta

          Jeff,

          I know only enough to imagine what is going on. But let me throw this at you from oilprice.com

          Q: Why Is The U.S. Importing So Much Russian Fuel Oil?

          A: U.S. refiners had to replace lost barrels of Venezuelan heavy oil following U.S. sanctions on Caracas. Many refiners have had to resort to using fuel oil instead of heavy crude because of these sanctions as the by-product of oil refining can replace heavy crude in refineries that cannot operate without it.

        • 0 avatar
          slavuta

          “why should we support Putin?”

          Why do you feel that you support Putin? We’re free country that operates in a free market and private company makes a deal with another private company. Who do you think operates / has contracts over resources in Kazakhstan? – US corporations! 80% of oil and gas in Kazakhstan developed by western companies.
          If you don’t buy things from Russia, Russia will not buy Boeing planes of Intel chips. Lets leave World trade organization and then we have no obligations for free markets. Is this what you offer?

  • avatar
    Skippity

    The chip plant will operate for a year or so, unionize, go on strike. The toilet paper isn’t Charmin, someone has a closer parking spot, something, anything.

  • avatar
    28-Cars-Later

    The Brandon Administration is considering deploying troops to Eastern Europe and I just read the State Dept. is pulling its non-essential personnel out of Ukraine.

    https://www.nytimes.com/2022/01/23/us/politics/biden-troops-nato-ukraine.html

    May be shaping up for at the least a proxy conflict. Did Brandon’s brain cells containing the world history of 1941-1945 recently die? Oh and let’s not forget most or all of those US troops were injected with heaven knows what with unknown long term side effects.

    Discuss.

    • 0 avatar
      slavuta

      And on Ukrainian TV nothing is happening. Life goes on as usual. Nobody does anything. The only thing that upsets them is that US and Russia kick this “Ukrainian football” and the football has no say in it

      Telling you. somebody plays a dirty game in US media. You know, CNN is now the department of state, attorney general, CDC and Climate czar – all in one.

      Meanwhile Russia said, US will have answers but Blinken already asked not to publicize them.

    • 0 avatar
      ToolGuy

      “Discuss”
      • The at-home covid tests being mailed to my household in February 2022 will make the December 2021 holidays safer
      • The new integrated circuit factory beginning production in 2025 will alleviate any chip shortages in 2022
      • By this logic (U.S.A. has mastered time travel), any conflict in Eastern Europe can be cleaned up [or even prevented?] a few years from now – no need to rush

  • avatar
    dukeisduke

    Intel primarily makes microprocessors and Wi-Fi chips, so I don’t see this having any impact on the auto industry.

  • avatar
    Daniel J

    It doesn’t matter if we make chips if most PCB manufacturing and card assembly is done overseas. While some of that is done here, most is done overseas.

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