Chip makers plan huge layoffs after Biden hands them billions

[Saltwater60]

The U.S. Said It’d Give Billions to Chipmakers. Now Come the Layoffs

The reported job cuts come at an awkward time for Intel—the company lobbied heavily for the subsidies in the CHIPS Act.

time.com

 

[SomeSoldier]

Called it!

 

[2WheelGnnr]

Plus can't the companies be playing with a numbers game. Like the gov't says this money is dependant on you creating 10,000 jobs so in the beginning of it all they fire 8000 and then money comes they hire back the 8000 and get 2000 more to make the 10k of NEW jobs it created......they created 10000 JOBs..Look how great this money did for them...WOW ..thats alot of american jobs. The prez too can sing the programs praises too..and say how hes creating Jobs....and whoa we are a booming.....all the while they really only truly expanded the job market by what 2000.???


Ive seen some instances involving COMIDA and consstruction where the company buildg and applied to COMIDA get rid a couple jobs before they apply then they have to report the new jobs they created then hire them back and count them as NEW jobs created.... WALA..everyone wins....- yeah right? its a numbers game or they will figure out a way to swindle its way into getting money.....like so many that applied for COVID releif.........some of them what didnt even hae payrolls or companies but got COVID monies?!

 

[99cummins]

Large scale money laundering by the us gov. At least the mafia and cartels attempt to keep their money laundering quiet.

 

[tgenec86]

Here's what they're not saying. Chip fabs have to be extremely well constructed - heavy foundations, clean-rooms, highly climate controlled. Take your average building build schedule X2. Or X3 if it's in, say... Clay NY which gets lots of lake effect snow. Three years for the building and physical plant. Next - the equipment that makes the silicon wafers that make the chips? Minimum of 3 year delivery, likely more that 4 due to the state of the global semiconductor market - and the company that makes those machines had a fire last year that crippled capacity for 3 months building wide, and still is impacting about 15% of their capacity. They have backorders out the backside, so they're not going to start building the wafer fabs for Clay until the completion date of the build, and the install is firmly known. That has every chance of being 5 years out at this point. Then - install. 6-9 months. Calibration and test - a full year or more. Low Rate Initial Production (LRIP), another year. Full rate production won't start until three full years after install. So now you have silicon - add another year for the fabs that product the IC's themselves.

Lots of construction at first, then a big, shiny building with 1/4 staff for several more years before those vaunted employment numbers finally get even close to the projections. And THEN? Will it really happen when China is laughing up their sleeves knowing their draconian Covid lockdowns and cut-backs in production have their many chip manufacturers operating at far less then capacity? They bring the fabs back to total capacity and flood the market with chips, costs plummet back to pre-Scamdemic averages, and the Clay facility with the highest taxed workforce in the nation goes to shit faster than a dinner party after eating the spoiled smoked salmon dip.

 

[GOYABEAN]

Take the money and run