It will 'regretfully no longer be able' to create those jobs and opportunities in Texas due to the outcome of Apple's pernicious litigation against the company.
or even more simply...
Sammy knows it'll get an appeal in Texas.
Samsung has said it will invest around $4bn to renovate its US chip factory so it can increase production of the semiconductors used in smartphones and tablets. The Korean firm will plough the money into the plant in Austin, Texas, the only factory it has outside of Korea. Samsung said the cash will be used to renovate …
A win by Samsung in the court would mean 1) it didn't have to pay damages to Apple 2) would be able to sell its kit in the US AND 3) it would still be making stuff for Apple (because Apple isn't going to be knocked out of business through losing a registered design legal fight).
Trebles all round!
Bankers that invest in a industry that actually produce physical goods or provide services are very necessary and good for the economy. Those that simply move money around from stock to stock as the market fluctuates generate money for their banks, but nothing for the rest of society.
Apple produce very little themselves so couldn't do anything like this so its obvious that because Samsung decide that its a good idea to spread its ability to produce chips to various parts of the world as a method of not being caught out due to weather or political problems ie the floods that knocked HD production are of course only doing it due to Apples patent spat.
Intel have plants all over the world but no one thinks its due to any other reason than being in the best place possible economically and for distribution and safety of diverse locations.
If this was because of the court case don't you think they would have made the announcement a week before the jury was selected ?
Most computer giants produce very little themselves. There's simply no need to buy your own fab facilities unless you feel you can save loads via vertical integration (see MOS and Commodore in the 80s).
It's much easier to shop around and pay someone else to build stuff for you. You can bring capacity online quickly by getting parts made by other people as well as your main supplier. Even Samsung do this by sourcing LCDs from other people when they are running short.
You also don't have to worry about hiring and firing.
Sounds like great news for US companies like Intel!
"How do you send $4bn dollars renovating a plant?"
Umm, by buying the equipment. You're obviously not familiar with the cost of the equipment in a modern fab ... $4bn is probably in the right ballpark for a modern 28nm and below production facility. Individual pieces of equiment can be priced in the millions of dollars so it soon adds up.
No, Samsung does not build the kit. There are companies like ASM Lithography that build the kit. Samsung just builds the processors that is built by the kit. You probably have heard about ASML before. Intel has spent more than $4 billion on a 15% stake in the company, TSMC spent over $1 billion on a 5% stake with a promise of another $95 million in five years. Samsung is also expected to invest in the company as well.
Why would Samsung build this technology when it it is cheaper to buy it. It is getting harder and harder to get the process size smaller and smaller. There is more than one-way to do it, some are better than others. If you build the kit, you might get stuck with a process that is not as good as what is offered elsewhere but you have no choice but to use what you built though. If 15% is worth around $4 billion, the company is worth over $25 billion. Intel doesn't even have enough cash to buy the company nor would they want to.
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