Posted on 06/24/2006 5:33:13 AM PDT by Renkluaf
SAN FRANCISCO -- Advanced Micro Devices Inc. confirmed that it has selected a site in upstate New York as the likely location for a $3.2 billion chip factory, though plans to build the plant are not definite.
AMD, of Sunnyvale, Calif., now makes all its microprocessors in Dresden, Germany, and hasn't built a new U.S. factory since the late 1990s. Under a non-binding deal with New York officials, the company expects to receive about $900 million in cash incentives from the state, out of total subsidies estimated at $1.2 billion, said Preston Snuggs, AMD's vice president of logic operations.
Depending on demand for chips and other factors, construction could start between mid-2007 and mid-2009, with the first output from the plant expected about 2010, Mr. Snuggs said. The plant, near Saratoga Springs, N.Y., is expected to create 1,200 new jobs, AMD said.
(Excerpt) Read more at online.wsj.com ...
She always claims credit...but I think we would find that her interest is in giving them the incentives. Most of these "incentive" projects never produce the jobs noted.
I dunno. Sounds like tax breaks for one of those evil big corporations to me...
She had nothing to do with it. At all.
But only Algore and John Effing Kerry can claim credit for inventing the chips they are going to make.
AMD's only problem the past 5-7 years has been capacity - technologically they've been way ahead of the competition. More Fabs can only help, and I'm thrilled that their newest one will be in the US. More capacity will mean cheaper chips, enhanced ability to go after the corporate market, which will solidify their financial position and provide more $$$ for R&D, further benefitting us even more down the road.
Regardless of who gets the credit, this is a win all the way around.
.... is expected to create 1,200 new jobs, AMD said.....
1.2 billion divided by 1,200 jobs is 1 million per job. ,Yes, thanks so much Hillary. What a deal.
The plant is in RINO Joe Bruno's NYS Senate District. Why didn't they build it in Endicott where we have all of these skilled IBM workers who have been thrown out of a job because IT MAKES NO SENSE to do business in this godforsaken political wreck of a state!
Remember (or be aware) that Saratoga county is "reddest" county in NY by population, also the best managed fiscally, with regular reductions in property and local taxation.
Sounds like the WSJ is giving Hillary credit for a definite maybe.
Why not have an accross the board tax cut to attract business? These deals never work as advertised. They are merely kickbacks.
Hopefully there may be some benefit for Washington county,one of the worst fiscally managed,as well.
Even so the cost per job is then $300,000. Invest $300,000 at 7% long-term and you can provide 24,000 per year to each potential worker for their life-time.
Another way to look at it. If the money were invested at 7% and paid out annualy to 3,600 workers over the next 10 years, each worker would get about $41,000 per year.
There is no way to spin this as making financial sense.
So.. the net 7 billion return in taxes over 10 years isn't worth 1.2BN in up front incentives, eh? - that's why the other 40 upstate counties will never grow financially, or amount to anything much, for that matter.
Washing county will benefit from the housing, and support businesses, and improvements in infrastructure, and also the recreational businesses.
That $300.000/job you are talking about is being taken from us now,isn`t it better to have it go towards productivity rather than a handout as you seem to suggest.
If I am misunderstanding your basic point,please forgive.
BWAHAHAHAHA!!!
Most here want to retain our rural heritage and landscapes but than want to spend like we have an unending revenue stream.
Hard to have it both ways.
If the numbers were true, then they argue that the tax base is too large which is the real problem.
Creating a tax rate that is so high that it makes companies leave then turn around and cut special deals based on projections prepared politicians who cut deals is what we used to call corruption. In fact my Italian ancestors made some tidy profits using this formula.
But to answer your precise question, investing 1.2 billion long-term for a projected 7 billion return over 10 years is a 17% return. Because of all the risks involved, the long-term nature of the investment, the rapdily changing industry they are in, NO. I would advise a client that the minimum projected return should be 25% and therefore the investment in this is too large for its expected return.
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