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At the time, our largest plants were Intel’s in Flagstaff and Samsung’s in Austin. Both were undergoing multi-billion dollar expansions.

So? What does that prove about the strength of the semiconductor business in the US? Two new plants built in the US does not mean didlly squat. We are actually losing markey share to other countries and China leads us in production.

China became the world's biggest chip market in 2005, after passing the Americas region. Sales of chips to the country will rise to US$111 billion in 2011, from US$39 billion in 2005, according to Scottsdale, Arizona-based IC Insights Inc. Intel ``will be bringing in fairly advanced technology to China, more than any manufacturer there has,'' said Len Jelinek, an analyst for El Segundo, California-based iSuppli. ``Once you put one manufacturer there with those capabilities, others will look at it, especially being that it's Intel.'

'Samsung’s quest for a new plant location tested Austin’s ability to compete with other high-tech cities and even other countries, as most new semiconductor plants are now being built in Asia. In April, Samsung made its final decision and chose Austin. Its new $3.5 billion plant will employ about 700 people directly and another 200 indirectly from supplier companies