Companies decided to sink billions of dollars of new investment into manufacturing plants in the U.S. after the CHIPS and Inflation Reduction Act boosted incentives for U.S. production,
Check out that spike in manufacturing plant construction. It dwarfs all prior increases.
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Why is the Biden administration talking tough on Wall Street, buybacks, dividends, etc and while puking subsidies on chip companies doing exactly that?
They are offering incentives for companies to invest in U.S. manufacturing & it's working.
You try to make it sound bad by calling it "puking" but a lot of Americans share this goal & will welcome these new developments.
Can't get back to the 1950s with data I'm familiar with, but Census Construction Spending extends to 1964.
Here's 1964Q1-2024Q1 in 2023 dollars. Quarterly values are the sum of NSA monthly values.
Data -
Table 3: www.census.gov/construction...
Monthly, NSA Total: www.census.gov/construction...
Okay, 1901-2022, Private Fixed Investment in Manufacturing Structures.
BEA Fixed Assets Accounts, Table 2.7, line 48. Deflated with a splice of the CPI and Index of the General Price Level.
Great stuff. I wish I could know how much of this money is being invested into semiconductor chips, and whether the move to chip independence is accelerating (or it will still take 10-20 years like Huang said).
I work in the semiconductor industry: hundreds of billions are being spent on chip production, specifically on US manufacturing plants. Iβm not sure how you define chip independence, but Intel is hoping to catch up with TSMC in something like 5 years.
SK Hynix was government funded by South Korea, Japan has always invested heavily in chip plants from government money. Only part of the reason for offshoring has been for cheaper labor. A good portion is because offshore semiconductor factories got better subsidies from the host country.