More Ice Cream Makers than Cows
This is the Obama Battery Factory, the Trump Foxconn real estate game all over again. Think about this for just a goldfish brain moment. At present, two fab factories are handling all global chip fab, TSMC and Samsung. The "CHIPS ACT Battery Plant II" program is calling for roughly 10 fab chips in the United States. So exactly how are these Fab plants going to all make money?
Worse the cost estimates already place any chips fabbed in the United States at a 50% increased cost. And who is going to bring their Chips to Intel for Fab. Aside from the fact that Intel failed at 10nm Chips they compete with fabless companies. Why would NVIDIA or Qualcomm bring their proprietary chips to Intel? It won't happen. Further, look at the placement of the INTEL Fab factories alone.... Columbus Ohio to take advantage of unemployed Auto Workers and their Unions and Arizona which has a water shortage.
Then you have the largest buyer and maker of chips in the world, CHINA. So what's the plan, Stan? To convert Vietnam into a consumer products manufacturing hub?
Think about TSMC... they are going along with this when it will only destroy their markets. This is because TSMC doesn't believe the US can be successful in FAB plants. This is the Foxconn story. TSMC and Samsung are along for the real estate deal. Meanwhile, Japan gets nothing from any of this.
Oh but but but it is different this time... The Gov really means it. OK fine. Name one successful Gov picking winners foray that has been successful in the last 60 years. There is none. Did you see the much-hyped new lunar landers? One blows up on launch losing all its fuel and the other falls over on its side on the moon. Yup, Gov picking more winners. This is just another Super Collider in the making.
Oh BTW... the entire US Semiconductor business is just 2.3% of the GDP and shrinking 3% annually. The business model of chip-making is wretched. Shelf life is short and if you can't find a buyer then you go broke. So what is the plan? Is the US military going to buy all the US-made chips? Or are we back to Foxconn claiming LED and big-screen TVs will be made in Wisconsin, or Texas, or the Rust Belt in Ohio? the UAW will show them how to make chips!