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back to article Bending the knee: US semiconductor juggernauts ask the government for help

The US Semiconductor Industry Association (SIA) has asked the government for “bold federal policies” that would enable it to maintain its grip on the world’s chip supply. The American chip-makers are complaining that foreign governments are using taxes to pay for semiconductor development and are asking for increased R&D …

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  1. Anonymous Coward
    Mushroom

    [ ... ] enact policies that will keep us at the forefront of ...

    ... importing H1-B's so we can pay them 1/3 of the market rates and treat them like slaves.

    Oh, and as an added benefit we can suppress the wages of everyone else, while we're at it. Because visionary, disruptive CEO needs ${BONUS}.

    How about NO?

    15 1 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Re: [ ... ] enact policies that will keep us at the forefront of ...

      Who would have thunk after laying off their parents and grandparents (often to meet some arbitrary quarterly goal) it would be hard to get grads today to go into manufacturing? A shame really because that is not how my company has operated and still getting new good blood in the industry is not easy. Screw the Intels and IBMs of the world (oh and the automakers, and etc).

      9 0 Reply
  2. Duncan Macdonald
    Stop

    How much state aid ?

    The US semiconductor industry has received a huge amount of subsidy over the years - both overt (subsidies for building FABs etc) and covert (buying at way over a reasonable price for military parts etc). Their response was to move much of the production out of the US as they could employ people for less in other countries. They (and other US companies) have abused the H1-B system to reduce the rates paid to US STEM graduates - now they complain that fewer US students are willing to enter STEM courses having seen that they will not get much money.

    The correct way to deal with H1-B abuse - set a minimum salary requirement of $100k per year so that firms have an incentive to employ local labor.

    9 0 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Re: How much state aid ?

      The minimum salary should be based on the cost of living for the area. Otherwise all the H1B jobs will end up in Silicon Valley and NYC where $100K is worth less than in Omaha or Austin.

      8 0 Reply
      1. asdf
        Reply Icon

        Re: How much state aid ?

        Omaha yes but Austin is nearly SV expensive these days. Make it Dallas.

        2 0 Reply
        1. Anonymous Coward
          Reply Icon
          Anonymous Coward

          Re: How much state aid ?

          Not really. Average price per square foot for a home in Austin/Round Rock is $155, versus around $900 in Silicon Valley.

          0 0 Reply
          1. asdf
            Reply Icon

            Re: How much state aid ?

            To be fair went more on perception of what I hear from people instead of data so I will take your word for it. Willing to bet though Dallas is still significantly cheaper.

            2 0 Reply
            1. Anonymous Coward
              Reply Icon
              Anonymous Coward

              Re: How much state aid ?

              DFW metro area $137 per square foot, so about 10% cheaper.

              1 0 Reply
  3. Anonymous Coward
    Anonymous Coward

    Netherlands rule

    The worlds semiconductor plants all rely on kit from ASML in Holland.

    I thought that when Trump put his tarrifs on Euro steel and aluminum the metal companies should have just bought them and decided that they were no longer interested in having Intel as a customer.

    7 0 Reply
    1. Anonymous Coward
      Reply Icon
      Anonymous Coward

      Re: Netherlands rule

      Intel doesn't need Trump to stop ASML kit from working as designed, they can do it themselves. GF/IBM has already paused plans for newer processes.

      And it doesn't really hurt Samsung/TSMC.

      It may delay Apples plans I guess?

      0 0 Reply
  4. baud
    Facepalm

    They want free market (to export without tariff), but not free competition, since they want government subsidies.

    8 0 Reply
    1. ecofeco Silver badge
      Reply Icon

      American business as usual.

      Privatize the profits socialize the losses.

      4 0 Reply
  5. Anonymous Coward
    Holmes

    "SIA recommends that the government removes “counterproductive” caps on green cards"

    Yes, we will encourage twice as many American students to take STEM courses, by asking the government to let us bring in an oversized allotment of foreign workers to drive down wages in the American STEM job market!!!

    And if (read: when) that doesn't work, we can fall back on the warehouse full of monkeys with EDA workstations to design the next generation of semiconductors, and they work for a few bananas!

    (Just a thought, SIA. If American students are shying away from STEM classes to major in glorious professions like, say, marketing, maybe you should look at the reasons WHY they are shying away from those technical skills? Could it be something with the STEM job market, or the feeling that if you study STEM you will get pushed out the door once you become middle-aged?)

    6 0 Reply
    1. ecofeco Silver badge
      Reply Icon

      Re: "SIA recommends that the government removes “counterproductive” caps on green cards"

      STEM is no longer a garuantee of steady employment at any age these days.

      It's all projects on contract.

      0 0 Reply

  6. This post has been deleted by its author

  7. Anonymous Coward
    Anonymous Coward

    IP and R&D as an expense is the problem

    If companies were allowed to log expenditures on R&D and internally developed IP and process improvements the apparent cost of such activities would be greatly reduced and thereby they can undertake development of new technologies without being punished by quarterly reports to wallstreet. Congress could create a way to allow companies to register expenditures on R&D as an actual depreciable asset and improve the financial perception of a company that actually invests in their own future.

    Companies are not allowed to account for money poured into IP and R&D as an asset on the books. This drives need for cheap foreign labor, making a change like this could radically decline this demand. Presently any investments in software, processes, trade secrets or other intellectual property must be counted as a loss and makes quarterly financials look very bad. In effect R&D is punished by wall street even though it is a necessary function in any healthy company. If IP is indeed property, congress should allow companies a way to register it as any other depreciable asset such as purchased software or office equipment.

    1 0 Reply

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