[HN Gopher] Samsung asks for planning permission for 11 fabs in ...
       ___________________________________________________________________
        
       Samsung asks for planning permission for 11 fabs in Texas
        
       Author : WaitWaitWha
       Score  : 152 points
       Date   : 2022-07-24 18:43 UTC (4 hours ago)
        
 (HTM) web link (www.electronicsweekly.com)
 (TXT) w3m dump (www.electronicsweekly.com)
        
       | CoastalCoder wrote:
       | Here's something that confuses me about building fabs in Texas.
       | IIUC:
       | 
       | 1) Power disruptions in fabs are very expensive.
       | 
       | 2) Texas's power grid has gained a reputation lately for being
       | unreliable.
       | 
       | If those things are true, how do they plan to deal with that?
       | Heavy investment in onsite power generation?
        
         | wnevets wrote:
         | As long as it doesn't get chilly, a little too warm or too many
         | people set their AC to below 78 the texas power grid works
         | great!
        
           | newaccount2021 wrote:
        
         | gwern wrote:
         | Apparently they just... shut down:
         | https://www.kvue.com/article/money/economy/boomtown-2040/sam...
         | 
         | I've read about chip fabs colocating with power plants, but
         | apparently they just plan to sign agreements with the local
         | utility for guarantees:
         | https://www.bizjournals.com/austin/news/2021/09/24/samsung-u...
        
           | extheat wrote:
           | > just shut down
           | 
           | Yes, a year ago.
        
         | mshumi wrote:
         | Buffer of batteries and generator backup
        
         | KennyBlanken wrote:
         | Fabs have all sorts of power systems because even the slightest
         | blip or glitch in power could mean millions in losses
         | 
         | I know a decade or two ago IBM was using superconducting
         | magnets for power smoothing to handle sub-millisecond events.
         | Then you have battery and flywheel systems for bigger drops
         | that are designed to carry load until generators can start and
         | accept load (usually a very short period of time if the
         | generator's oil and coolant are on heaters.)
        
         | rossdavidh wrote:
         | Austin resident here, who used to work in fabs.
         | 
         | Basically, there was a time (1980's) when fabs in Austin had
         | their own power generation. AMD, which used to have its own
         | fabs, had its own power for them. Then, they (not just AMD but
         | everybody with fabs in Texas) eventually decided it wasn't
         | worth the cost, and started using the regular power grid,
         | because Austin's power had become more reliable. Obviously, as
         | the percentage of solar, wind, and natgas has increased, and
         | the percentage of coal has decreased, this reliability has been
         | thrown into question. Also, the rapid population increase has
         | also just meant a general problem of building new capacity fast
         | enough.
         | 
         | My guess is that they have an eye on it, and it is also
         | possible they will build their own power generation, but more
         | likely they are just getting guarantees of some sort that
         | enough power capacity will be built.
        
           | mortenlarsen wrote:
           | The recent issues did not have renewable energy as the main
           | cause. Fox News is entertainment, not news (by their own
           | claim).
        
             | makomk wrote:
             | Renweable energy was not the "main cause" because it
             | reliably fails to generate adequate amounts of power at
             | that time of year and so the grid was entirely reliant on
             | other generation (mostly natural gas) to fill in the gap.
             | Basically, it wasn't the fault of renewable energy because
             | everyone knew it was useless anyway.
        
             | pclmulqdq wrote:
             | I would like to point out that the New York Times has made
             | the same claim very recently too (in the same context, a
             | defamation trial).
             | 
             | Events like the Texas blackouts rarely have one sole cause.
             | Reliance on renewables was clearly one factor out of many.
        
               | michaelmrose wrote:
               | It's actually not a meaningful factor AT ALL. Where
               | renewables failed it wasn't because the nature of the
               | technology but because of failure to winterize.
        
               | hadleybelter wrote:
               | It was, and is, a hugely meaningful factor. Sticking your
               | head in the sand and pretending that it's a republican
               | smear campaign doesn't help.
               | 
               | Texas has more wind power generation than any other state
               | in the US _by far_. Texas is all aboard the wind train.
               | It 's a huge part of the economy. Texas wants wind to
               | win. But that doesn't change reality.
               | 
               | In the last month, Texas has gotten close to electricity
               | demand exceeding supply. A significant factor behind this
               | is that Texas gets nearly 20% of its electricity from
               | wind generation. On your average summer day, wind
               | generates between 15 and 25 GW. However, during the
               | recent heat wave, wind speeds dropped in west Texas
               | (where the bulk of the wind farms are) and wind was only
               | generating less than 2 GW during the hottest part of the
               | day.
               | 
               | Similarly, Texas usually gets about 10 GW of power from
               | solar. However, solar drops off to 0 GW very rapidly
               | around 7 or 8 PM. However, in the summer in Texas, the
               | temperature is still at its peak around 7 PM, so there is
               | still significant demand while solar generation is
               | dropping.
               | 
               | Wind and solar are unlike thermal generation in that we
               | (humans) can _choose_ to burn more oil and create thermal
               | generation when needed. But with solar and wind, we
               | cannot choose to suddenly create more wind or sun. We are
               | at the whims of nature, and until we figure out better
               | solutions for these problems (battery storage, maybe),
               | wind and solar have their disadvantages compared to
               | thermal. Pretending otherwise is not helpful.
        
               | michaelmrose wrote:
               | There is nothing but incompetence and greed keeping Texas
               | from having as good a grid as the rest of the US.
        
               | hadleybelter wrote:
               | You mean the rest of the US that has been facing
               | widespread threats of blackouts this summer?
               | 
               | https://www.vice.com/en/article/dypnja/majority-of-us-
               | power-...
               | 
               | https://www.cnn.com/2022/05/31/us/power-outages-electric-
               | gri...
               | 
               | https://www.reuters.com/investigates/special-report/usa-
               | rene...
               | 
               | https://www.eenews.net/articles/grid-monitor-warns-of-u-
               | s-bl...
               | 
               | https://www.washingtonpost.com/business/2022/06/02/blacko
               | ut-...
               | 
               | I'll agree with you that there's greed and incompetence
               | all over Texas's politicians and state management. But it
               | isn't unique to Texas. We have a widespread societal
               | problem with our electrical grid that transcends state
               | lines.
        
             | rayiner wrote:
             | It goes without saying that, just because Fox News is
             | saying it doesn't mean it's right. Partisan bickering in
             | either direction isn't a good way to educate yourself on
             | the issues.
             | 
             | Renewable power throws a wrench in how Texas does grid
             | planning. In every other ISO, there is both a capacity
             | market, which pays providers to commit to making certain
             | generating capacity available, and a generation market,
             | which pays for actual electrical production:
             | https://cpowerenergymanagement.com/why-doesnt-texas-have-
             | a-c.... In Texas, there is just a generation market.
             | 
             | Ordinarily that isn't a big deal. Generators build adequate
             | capacity so they can be in a position to receive payments
             | for generation at times of peak demand.
             | 
             | Renewables break this down. They undercut traditional
             | generation sources in the summer, but can't be counted on
             | to be there at times of peak winter demand. So last winter
             | renewables didn't fail in the sense that _nobody was
             | expecting them to generate much power begin with._ But the
             | natural gas plants that are irreplaceable for dealing with
             | winter demand are dealing with reduced revenue because
             | renewable sources are underbidding them in peak summer
             | months.
        
               | [deleted]
        
               | konschubert wrote:
               | Looks like the free market for power has decided that a
               | few days of outages is not worth running extra power
               | capacity.
               | 
               | Which might be right! But are the externalities all
               | correctly priced in here?
        
               | JamesBarney wrote:
               | I don't think they can charge whatever they like. There
               | are some regulations on the max price a generator charge
               | for electricity, which we hit during the last freeze.
        
               | kurthr wrote:
               | I heard about people paying over $10/kWH and having $15k
               | bills for about 5 days of power. I know people who paid
               | well over $1000 for the month and their power was out for
               | much of the cold spell (~50%). I hear they're going to
               | try and lower billing to less than $9000/MWh, but that's
               | not going to encourage building proper infrastructure,
               | and making gouging profitable doesn't encourage any of
               | them to improve reliability. Why bother weatherproofing?
               | 
               | I'm reminded of Enron's "grandma Millie" comments.
               | 
               | https://www.nbcnews.com/business/business-news/deep-
               | freeze-s...
               | 
               | https://www.nytimes.com/2004/06/13/weekinreview/word-for-
               | wor...
        
               | rayiner wrote:
               | There's no "free market" for electricity anywhere in the
               | developed world, including Texas. In the US, the grid is
               | centrally planned by several regional transmission
               | organizations. In Texas that's ERCOT. An artificial
               | market, a bid-auction system, is used to decide the
               | actual price of electricity at any given moment. But in
               | the case of ERCOT they concluded that, because outages
               | prevent generators from making money during periods of
               | peak demand, generators had adequate incentives to invest
               | in reliability without a separate capacity market. And
               | that worked fine for decades!
               | 
               | It's not a choice of "free market versus regulation."
               | It's a heavily regulated market. The question is only
               | about the design of the regulatory scheme.
        
               | vel0city wrote:
               | On top of that, when attempting to do rolling blackouts
               | critical gas infrastructure froze and so gas supply
               | plummeted. The gas plants weren't able to generate their
               | capacity because there wasn't enough gas to burn.
        
               | michaelmrose wrote:
               | The things is there really isn't partisan bickering on
               | both sides of this issue in the first place. There is
               | non-partisan reality where poor planning by non-partisan
               | entity predictable led to service disruption. Even the
               | failure of legislators is itself a non-partisan failure.
               | Ordinary incompetence.
               | 
               | The only partisan bickering is the attempt to incorrectly
               | blame renewables for the lack of capacity when in fact
               | planned downtime, ordinary logistical failures, and
               | failure to winterize are in fact to blame.
               | 
               | Everybody ought to have expected them to need that much
               | power. Not every day and not every winter but everyone
               | ought to have expected another bad winter to come round
               | because they had bad winters in 1957 1960 1973 1985 2015
               | 2017 2021. This includes 3 years out of the last 6.
               | 
               | They weren't prepared because they were short sighted,
               | greedy, and stupid not because solar took so much of the
               | profits and not because insufficient capacity had been
               | built out for lack of such profits. Capacity existed and
               | it sat unused or broke when it was most needed.
        
               | mortenlarsen wrote:
               | It sounds like a free market working as expected. Maybe
               | something important like this needs regulation to prevent
               | optimization based on only one parameter ($).
        
             | rossdavidh wrote:
             | So, I wouldn't know, because I haven't watched Fox News in
             | many years. The best low-emotion, technically informed
             | analysis of "Snowpocalypse" is probably this one from
             | "Practical Engineering", made by a San Antonio-based
             | engineer:
             | 
             | https://www.youtube.com/watch?v=08mwXICY4JM
             | 
             | The outages were not from any one "main cause", except
             | perhaps "Texas doesn't get cold that often and wasn't
             | ready". But, wind icing up was certainly one of several
             | major causes, along with natural gas pressure dropping so
             | that natgas-powered electrical plants could not keep
             | operating.
        
             | hadleybelter wrote:
             | The most recent issues for which the Texas electrical grid
             | was in the news for, the near-blackouts earlier this month,
             | were specifically because of unpredictably low wind speeds
             | in west Texas which reduced Texas's expected wind
             | generation from ~20 GW to under 2 GW during the periods of
             | peak demand. For context, peak demand in Texas is around 80
             | GW. Taking 18+ GW off the table is a _huge_ blow. 18 GW is
             | more than the entire electrical demand of most US states.
             | 
             | Fox news has nothing to do with it. Generation capacity
             | being reduced by nearly 25% due to unpredictably low wind
             | speeds is physics. It's a huge problem being faced, and
             | sticking your head in the sand and crying "fake news" isn't
             | helpful.
        
         | Fargoan wrote:
         | Probably. I would think that would be common in that industry
         | no matter the location
        
           | CoastalCoder wrote:
           | > Probably. I would think that would be common in that
           | industry no matter the location
           | 
           | In particular, I was thinking about the power disruptions in
           | Taiwan earlier this year [0].
           | 
           | IIRC, there was concern that a power drop could ruin some/all
           | chips currently in the fab pipeline, and might also require
           | several days to re-initialize the pipeline's equipment.
           | 
           | [0] https://9to5mac.com/2022/03/03/power-outage-in-taiwan-
           | affect...
        
         | Victerius wrote:
         | 3) Foundries are water guzzlers and Texas is mostly arid.
         | 
         | The Northeast or the Great Lakes would make more sense.
        
           | silisili wrote:
           | That area of TX gets about 40 inches of rain a year, about as
           | much as Seattle.
           | 
           | It's not as 'wet' as some areas, but far from the dusty
           | tumbleweeds people often associate with central and west TX.
        
           | vel0city wrote:
           | Parts of Texas are literally considered rain forests.
        
           | randrews wrote:
           | Parts are, but other parts, like the gulf coast, have plenty
           | of water. Texas is not the giant desert you see in cowboy
           | movies.
        
           | bushbaba wrote:
           | Didn't intel's fab recycle the bulk of their water?
           | 
           | https://www.intel.com/content/www/us/en/newsroom/news/water-.
           | ..
        
           | newaccount2021 wrote:
        
         | thaumasiotes wrote:
         | > Here's something that confuses me about building fabs in
         | Texas.
         | 
         | > Texas's power grid has gained a reputation lately for being
         | unreliable.
         | 
         | As stated, there's nothing to be confused about. You'd want to
         | build new fabs in Texas for the same reason you want to buy
         | stocks while they're down rather than while they're up.
         | 
         | The reputation only matters if you're trying to sell your new
         | fab to someone else. If you want to use it yourself, what
         | matters is the reality.
        
           | CoastalCoder wrote:
           | > The reputation only matters if you're trying to sell your
           | new fab to someone else. If you want to use it yourself, what
           | matters is the reality.
           | 
           | Certainly. My point was that (perhaps) the grid _in
           | actuality_ has reliability issues, and the reason I thought
           | that might be true is because of its current reputation.
        
         | TaylorAlexander wrote:
         | Also odd since their state government leaders are highly
         | politically motivated and want to make political waves even if
         | their actions are irrational (like on power production, blaming
         | wind turbines instead of recognizing their failure to winterize
         | wind and coal power systems).
        
           | jrockway wrote:
           | I think it's a favorable tax environment. Just remember that
           | these companies claim to be progressive, but if they can save
           | $20 on their taxes, that all goes out the window.
        
             | edmundsauto wrote:
             | I think the tax environment for companies is favorable,
             | also fewer environmental regulations (and making chips uses
             | some nasty chemicals)
             | 
             | Just wanted to say that taxes in Texas are less favorable
             | than eg California when it comes to middle class citizens -
             | no income tax, but very high property taxes.
        
               | bbarnett wrote:
               | I've driven through Texas, and there is this 300 mile+
               | stretch, in the North, that is hell on earth. Pure putrid
               | smog, the skies darkened, the air thick, dank, cloying
               | from refineries or something.
               | 
               | So yeah, great place to build something, and save cash on
               | tech to cleanup your waste. Yay Texas!
               | 
               | I swear people must die 10 years sooner in that stretch.
        
               | jefftk wrote:
               | _> people must die 10 years sooner in that stretch_
               | 
               | No Texas county breaks the top 10 for counties with the
               | shortest life expectancy: https://en.wikipedia.org/wiki/L
               | ist_of_U.S._counties_with_sho...
               | 
               | 10 years less than the national average would get you to
               | 69, and be #5 on the list. For comparison, #50 is only 6y
               | below the national average.
        
               | stevenwoo wrote:
               | There are worse places just in Texas - there's a chemical
               | refinery locus to the east side of Houston near the port
               | and bigger one near the border with Louisiana with so
               | many flares at night it reminds one of Mad Max a bit,
               | though there are various plants scattered along the gulf
               | coast as well, were a half dozen that I knew of in the
               | mostly rural county I grew up in to the south of Houston.
        
               | ceeplusplus wrote:
               | > very high property taxes
               | 
               | CA property taxes are highly regressive. Old boomers get
               | to pay sub 0.1% tax rates because of Prop 13 while new,
               | young, and poorer buyers get to pay tax on inflated
               | property valuations.
               | 
               | When it comes to increasing class mobility high property
               | tax >>> high income tax.
        
               | anfilt wrote:
               | I don't live in CA, but forcing low or fixed income
               | people out their homes just because their property
               | increased in value which is often outside their control
               | is not good.
               | 
               | From my understanding part of the problem also is the
               | even landlords benefit from prop 13 and same with people
               | that own multiple properties. Honestly, I think something
               | like Idaho's Homeowners Exemption is better. The owner
               | has to live in it to qualify.
               | https://tax.idaho.gov/i-1051.cfm
        
             | notatoad wrote:
             | that's a fair criticism a lot of the time, but I don't
             | think Samsung ever makes any real claims of being
             | progressive. not too many woke companiese have a division
             | that builds tanks.
        
               | JaimeThompson wrote:
               | How are you defining woke as you use it here?
        
               | jackmott wrote:
        
           | rossdavidh wrote:
           | There is plenty of politics in Texas, for sure, but it wasn't
           | coal power systems that failed in the winter, it was wind,
           | natgas, and one nuclear power plant.
        
             | vel0city wrote:
             | Actually some coal plants did fail in the freeze as well.
        
             | TaylorAlexander wrote:
             | My understanding is that this is incorrect, and it was coal
             | power plants that weren't properly winterized that failed.
             | Of course you had a lot of people claiming the opposite,
             | without evidence.
             | 
             | EDIT: Okay there was some loss in capacity in wind power,
             | but the greatest loss in capacity was natural gas plants,
             | which lost 15GW of capacity. I confused natural gas with
             | coal as I don't consider either to be climate friendly.
             | Wind lost about 3GW of capacity.
             | 
             | See at 7:50 here: https://youtu.be/08mwXICY4JM
        
               | Aloha wrote:
               | Natural Gas may not be climate friendly, but there is
               | lots of it in Texas, and it's more environmentally
               | friendly than coal.
               | 
               | The Natural Gas distribution system just fell apart two
               | years ago.
        
               | rossdavidh wrote:
               | Excellent video channel, I follow it as well.
               | 
               | By the way, natgas is actually much friendlier (well,
               | less hostile) to the environment than coal, if you're
               | looking at carbon/kWh or all of the other things released
               | into the atmosphere when you burn coal.
               | 
               | However, you can much more easily make a giant mound of
               | coal next to your power plant, than store up enough
               | natgas (LNG is much more expensive to store). So, the
               | power plants required natgas to show up in the pipeline,
               | and when the temperature dropped and everybody cranked up
               | the heat, not only in Texas, the natgas pressure in the
               | pipelines dropped. Oil (liquid) and coal (solid) are just
               | fundamentally easier to stockpile than natgas or wind
               | (gas) or solar (light).
               | 
               | A big freakin' battery would help with this, but that
               | isn't a cost-effective option (yet?).
        
             | abathur wrote:
             | Iirc wind performed more or less as forecast (admittedly
             | not great, but as expected) during Feb 2021 and nearly all
             | of the shortfall came down to natural gas plants and infra
             | failing.
        
               | rossdavidh wrote:
               | I'm all in favor of wind power in Texas, and want more of
               | it, but it did do worse than expected in Feb 2021. It's
               | just a problem to be fixed, not a reason to drop wind
               | power (west Texas has a lot of wind), but it did actually
               | happen.
        
         | seydor wrote:
         | Mexican labor
        
           | [deleted]
        
         | bob1029 wrote:
         | There is no way in hell you can run a modern fab using on-site
         | power anymore. Maybe in the 80s/90s, but now you got things
         | like EUV light sources that require megawatt-class power
         | delivery all on their own. Just stepping back 1 generation to
         | DUV and you are "only" talking ~100kW per machine, which is
         | still insane.
         | 
         | What would probably happen is a special grid arrangement. If
         | you are going to build _eleven_ of these things, entire power
         | plants, switchyards and transmission lines will need to be
         | constructed ahead of time. They will likely need to run
         | isolated from the broader grid in some manner. I cannot imagine
         | Samsung executive management agreeing to this many factories
         | (even with subsidies) unless some guarantee could be made WRT
         | power delivery.
        
         | lkbm wrote:
         | Proposed starts of operations are 2034-2042. I'd expect a fair
         | bit of on-site generation/storage, but I also would hope ERCOT
         | gets its act together by then (or is replaced with a multi-
         | state system).
        
         | tekno45 wrote:
         | Private solar farm makes sense in certain parts of texas.
         | 
         | But then water is probably the harder issue.
        
           | galangalalgol wrote:
           | Texas is very good at water planning. Solar does make sense
           | if you have lots of land. How much skilled labor actually
           | works _at_ a fab? Attracting skilled labor to work far enough
           | out, that that amount of land is affordable could be a
           | problem. If the weather, and power situation remain. It might
           | be hard in any case.
        
           | thehappypm wrote:
           | Depends where in Texas. Houston area is more similar to the
           | Deep South in weather, no shortages of water, in fact dealing
           | with floods is a huge part of their urban planning challenge.
        
         | ars wrote:
         | > 2) Texas's power grid has gained a reputation lately for
         | being unreliable.
         | 
         | Having the appearance of something is not the same as actually
         | being that thing. They had one outage during a cold snap, and
         | then warned about high usage, but there has not actually been
         | another outage.
         | 
         | California is also warning about an outage.
         | 
         | https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20...
         | the graph on page 6 (labeled as page 5) should be more
         | instructive.
        
           | [deleted]
        
           | Aloha wrote:
           | As a Texan, I can concur.
           | 
           | That said, the failure and piss-poor government response to
           | it makes me almost viscerally angry. Texas has promoted
           | itself as an energy leader, from traditional oil and gas
           | production, to large (and growing) production of renewables,
           | we shouldn't be having these failures.
           | 
           | The issue for me isn't the failure of the power grid,
           | extraordinary events happen - its that:
           | 
           | One - it's happened before (twice before).
           | 
           | Two - we should have had a governmental response to
           | adequately winterize the grid.
           | 
           | Three - the deregulated power system in Texas creates
           | perverse incentives to building more capacity in - and power
           | usage in Texas is growing faster than either base load or
           | peaking capacity is.
           | 
           | These are all governmental and regulatory failures, and ones
           | that were both foreseeable and preventable.
        
           | galangalalgol wrote:
           | They are in fact doing rolling "brownouts" as of a few days
           | ago. I put it in quotes because the friend who told us about
           | it had been without for a couple hours at that point.
        
             | trashcan wrote:
             | This is not being done by ERCOT that manages power
             | distribution in Texas. Your friend had a local power
             | failure, probably caused by a downed power line.
             | 
             | Rolling blackouts would be documented here if they were
             | happening:
             | https://www.ercot.com/services/comm/mkt_notices/opsmessages
             | 
             | More info: https://www.kxan.com/news/texas/do-you-know-the-
             | difference-b...
        
         | marcinzm wrote:
         | Given this is just an initial permission with no concrete plan
         | to build they may also be trying to induce a bidding war with
         | another location that is more favorable (but more expensive).
        
       | trentnix wrote:
       | Samsung asks permission (but makes no actual commitments) right
       | before Washington votes on whether to subsidize chip
       | manufacturing. Maybe I'm just old and jaded and maybe asking
       | permission has nothing to do with posturing for DC money, but
       | experience tells me this might not be as genuine as the headline
       | suggests.
        
         | mike_n wrote:
         | Wouldn't it be prudent for them to ask for 11 fabs in 11
         | states, and get 11x more politicians lobbying for them?
        
           | anfilt wrote:
           | Maybe they like the laws in Texas more, alot companies have
           | been moving to Texas for that reason. Although that is
           | conjecture. Also having them geographically close has perks
           | for logistics.
        
             | brewdad wrote:
             | I hope they are bringing their own power grid along with
             | those fab plans. Power bumps and brownouts are terrible for
             | fabs.
        
         | PragmaticPulp wrote:
         | I don't see the problem. If the US government shows a potential
         | interest in subsidizing fabs, the expected outcome is that chip
         | makers would explore their options for building fans here.
         | 
         | That's the entire purpose of the subsidies.
        
           | bbarnett wrote:
           | Wouldn't the goal be to _not_ apply, before the law passes?
           | 
           | The touted concept is, no one will build without subsidies.
           | Yet without them, Samsung is planning to build! The proof?
           | Well, they spent cash to plan, pay for application prep, and
           | apply.
           | 
           | So yes it seems weird. If anything, it could kill the bill.
        
             | foota wrote:
             | It could be to incentivize local politicians to vote for
             | it.
        
             | DannyBee wrote:
             | Samsung might want the bill dead because it is in
             | relatively better shape.
             | 
             | In this case, however, samsung has specifically said they
             | don't have plans to build at this time, and only one fab
             | they applied for has a _start build_ date prior to 2029
             | (and online dates are in the 203x timeframe).
        
             | syrrim wrote:
             | Planning is not doing. Subsidies are only useful if fabs
             | are on the verge of being built, but are being held back.
             | If no one would ever build a fab in the US, then any
             | subsidies handed out will be wasted. If fabs are being
             | built anyways, then there isn't much benefit. Samsung is
             | saying they might build a fab, and thus could be enticed by
             | subsidies.
        
               | bbarnett wrote:
               | Their actions say otherwise, because to plan means you
               | think it worthwhile.
        
               | PretzelPirate wrote:
               | Unless their plan is "let's get permissions so that if
               | the subsidy is put in place, we're ready to build."
               | 
               | That doesn't suggest that they'd build without the
               | subsidy, but that they want to be able to take advantage
               | of the subsidy right away, if it gets put in place.
        
               | bbarnett wrote:
               | Right. So spend time designing plants specific to local
               | build codes, environment and terrain, paying architechs,
               | examining land conditions, paying legal and lawyers, all
               | to get permits to build, when you can wait until after,
               | and do the same?!
               | 
               | Sure, companies love to spend hundreds of thousands on
               | unknowns, for no real reason.
        
         | dgfitz wrote:
         | As a sibling comment points out, I don't think it's
         | disingenuous at all, and I agree with your point in all but
         | that remark. Almost seems like the brass at Samsung are on top
         | of things, and it doesn't seem like they're trying to "pull a
         | fast one" at all. Disclaimer: I buy Samsung things but have no
         | affiliation.
        
         | stjohnswarts wrote:
         | Well I personally know several Samsung people in the area.
         | Samsung is very serious about expanding into Texas in a big
         | way. I'm not sure if recent attempts by Texas government to
         | promote Christian Nationalist/Qanon ideas has dissuaded them,
         | although I consider that the biggest detriment for businesses
         | going forward in Texas (attracting young people to a state
         | where half the population and their rights is considered less
         | valuable than the other half)
        
         | terrorOf wrote:
        
       | bilsbie wrote:
       | Better to ask forgiveness than permission.
        
         | terrorOf wrote:
        
       | neilv wrote:
       | Would they have hiring difficulty, considering recent Texas
       | politician positions and maneuvers on some societal issues that
       | are important to a lot of educated people (e.g., abortion rights,
       | birth control rights, gun regulation, civil rights).
       | 
       | (To avoid "politics" discussion on HN, I'm _not_ asking about
       | what values and rights individuals should have. I 'm asking
       | whether, given the values many skilled workers seem to have, and
       | that it's suddenly looking a lot harder to coexist in Texas
       | (regardless of pockets like Austin), how will that affect hiring
       | of high-tech workers who'd need to reside in Texas.)
        
         | smegger001 wrote:
         | there are plenty of people for whom this is either not a deal
         | breaker, is a non issue, or support it. secondly i think this
         | may be a point that breakes the red hold on the state it has
         | been purple for a long time already and this will probably
         | result in quiet the backlash against the right.
        
         | vel0city wrote:
         | I personally know a lot of right leaning, church going, gun
         | toting, EE/material science/physics/fab-related-field people in
         | Texas. There's plenty of people working highly skilled jobs who
         | don't have that much of a problem with the recent reversal of
         | Roe.
         | 
         | You can technically be highly educated and still be pro gun,
         | anti gay marriage, and pro-life. It's not like learning how
         | silicon crystals form or how electrons move suddenly makes you
         | pro choice.
        
         | ceeplusplus wrote:
         | I don't foresee a large exodus from Texas. There's been a large
         | inflow during COVID and I don't see people leaving their big
         | houses and cheap CoL. The Twitter crowd screams a lot about
         | these things but if you look at sites like 538 for example,
         | there's been only a minor shift towards Democrats in the polls
         | due to Roe v Wade being overturned. The economy matters a lot
         | more to people than social issues.
        
       | 88840-8855 wrote:
       | WHY cannot we have such stuff here in Germany? WHY is everything
       | here so much Kleinklein? I am very mad!
       | 
       | Good for Texas! It is the place to be.
        
         | throwaway4good wrote:
         | EU has chips act (actually passed) and is already paying Intel
         | billions to create a new fab in Germany.
        
         | Y-bar wrote:
         | What?
         | 
         | > Intel picks Magdeburg in Germany for new European chip
         | factory
         | 
         | https://www.reuters.com/technology/intel-picks-magdeburg-ger...
        
         | rossdavidh wrote:
         | Hi! I used to work in fabs in Texas, and then our company's new
         | fab got made in Germany (way back in 2000 or so). I actually
         | worked in Dresden for six months, as one of a few Americans
         | helping to get things going. These things have a way of going
         | in cycles. I expect Germany will get some more fab building
         | going soon.
        
         | pjc50 wrote:
         | https://www.techzine.eu/news/infrastructure/83384/bosch-buil...
         | 
         | (it's just a massive US news availability bias)
        
       ___________________________________________________________________
       (page generated 2022-07-24 23:00 UTC)