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by jgeada
1047 days ago
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The building is the easy part, almost trivial part. Getting the enough ASML machines to supply a fab for an advanced process (and they have a backlog that is almost a decade long), starting up the whole complex logistical process to feed the fab (with lots of single source suppliers that are already committed to the existing fab capacity), getting all the necessary personal and skillsets started and getting the fab working, creating all the little feeder companies that are necessary around the fab, all that is hard work. It is is something that the US has largely lost most knowledge of how to do with all the outsourcing of industrial capacity. And all this has to be done agains the upwind pressures of our service economy. Our politicians are largely lawyers, our financial sector focuses on short term returns, and our companies are rife with lawyers and MBA layers taking their cut out of the necessary investments in manufacturing and engineering. None of this is encouraging for the necessary long term slog to bring back industrial capacity, particularly something with as complex and deep logistical tail as semiconductor manufacturing. |
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Such as slashing the corporate tax rate (and the offset is to raise the individual tax rate on higher incomes). Which is the Ireland model, and it works extraordinarily well (even more so if you already have a desirable foundation). Cut it far enough and it'll lure more companies and jobs than you can absorb. And meanwhile the corporate income tax is an increasingly trivial component of the US Government's funding, it's no longer very important. If anything we should cut it further (~15%) and very aggressively pull companies, investment, R&D, manufacturing out of foreign nations and into the US. The corporate tax rate is a magnet, the lower you go the stronger it is (and there is no doubt a significant diminishing of returns as you go below a certain % figure).
Increase the standing incentives (not only one-off programs like the CHIPS Act).