GloFo may receive financial support from the European Commission

[Phynaz]

http://www.eetimes.com/document.asp?doc_id=1327215

Globalfoundries' Dresden wafer fab could become the European More-than-Moore foundry that the local chip companies lacked the courage to commission. As such Globalfoundries could yet receive financial support from the European Commission to expand its presence in Europe.

 

[ShintaiDK]

Isnt it just the standard "we give you money if you build here" thing like all foundries get.

I dont get how it will ever pay itself back. New York for example payed 1.2B$ for what..3000 jobs? That will be gone in 10-15 years.

 

[NTMBK]

I will be very pissed off if they waste my tax money to prop up an Abu Dhabi venture.

 

[Dresdenboy]

Isnt it just the standard "we give you money if you build here" thing like all foundries get.

I dont get how it will ever pay itself back. New York for example payed 1.2B$ for what..3000 jobs? That will be gone in 10-15 years.

The same discussion as during the last decades. First there is the effect of the invest itself, which is not solely paid by the state. So some first parts of the financial support come back by increased business at the construction companies' employees. Later there are taxes for the ground being built on, personal taxes (the high paid employees there have some avg. 30% income tax). They live there -> 19% VAT for their shopping. Such a fab attracts many smaller companies with some multiple amount of additional workers. And it doesn't look like Dresden is as poor and indepted as Berlin, where industry is missing somehow (with some exceptions).

Edit:
Around 2007 there were 69 nanotech firms in Dresden according to a Bundestag report.

One book at Google Books even mentions DM 2.25B as estimated income by including any social security money flows. An employer in Germany adds 20% for social security to any salary, while the employee also pays 20%. Of course this only helps the people, not the state itself. But the state being a organization of the people this should be fine.

Instead compare that with costs the state would have without getting the industry there:
- less interest by other industries in this region (infrastructure, workforce)
- higher unemployment
- costs involved with long term unemployment (>1a): ~8000€/person
- lower revenues and more individual failures in the local tertiary sector

 

[ShintaiDK]

Its still corporate welfare for temporary jobs. Plus all the downsides that is associated.

From a technological standpoint its a good thing for the consumers. But outside that there is much better ways of getting jobs and revenue to a city/state/country etc. The value per $/€ etc is poor.

 

[Dresdenboy]

Its still corporate welfare for temporary jobs. Plus all the downsides that is associated.

From a technological standpoint its a good thing for the consumers. But outside that there is much better ways of getting jobs and revenue to a city/state/country etc. The value per $/€ etc is poor.

The companies will benefit anyways. They play the competition game with multiple states at once, as a company plays that game with job applicants. One side will always win.

And see my edit. I think the state is no investment company, but should care about the situation of its citizens.

 

[Yuriman]

Practically all high tech jobs are "temporary" anyway, if you're going to call 10-15 years temporary.

 

[Abwx]

The value per $/€ etc is poor.

You look only at the manufacturing side of things, how about the infrastructure needed to make such a plant running, from extremely purified water to lithography..?..

This imply an eco system much bigger than the facility itself wich is only the tip of the iceberg of an industry requiring highly qualified workforce..

 

[ShintaiDK]

You look only at the manufacturing side of things, how about the infrastructure needed to make such a plant running, from extremely purified water to lithography..?..

This imply an eco system much bigger than the facility itself wich is only the tip of the iceberg of an industry requiring highly qualified workforce..

The fab shell is cheap. Infrastruture doesnt cost much. And all the expensive items like tools and installation doesnt come locally.

Oh, and the water part is a disaster of its own:
http://poststar.com/news/opinion/co...cle_cc74b172-e57d-11e0-be43-001cc4c03286.html

 

[Dresdenboy]

Oh, and the water part is a disaster of its own:
http://poststar.com/news/opinion/co...cle_cc74b172-e57d-11e0-be43-001cc4c03286.html

Since the GlobalFoundries deal reeks it makes sense the water in the line built to supply it stinks.

BTW, those deals remind me of the many new customer deals out there. A new customer get's the benefit while the existing ones have to watch it from the sidelines.

 

[gorion]

Greeks will be delighted in seeing EU money supporting a German fab

 

[mrmt]

Greeks will be delighted in seeing EU money supporting a German fab

Is Greece still sending any money to EU?

 

[Shehriazad]

Can we like...not get political about something that doesn't have to do anything with the OP?

Otherwise this thread is gonna turn into a salty mess very soon.

 

[cytg111]

Greeks will be delighted in seeing EU money supporting a German fab

Feel bad for the greek layman, while you have to adapt to the market around you, it really is a play on a fiscal level that is way beyond common folks control.. which is kind of sad and counterintuitive given the origins of the democratic idea.

 

[Black Octagon]

Greeks will be delighted in seeing EU money supporting a German fab

EU money comes from Member States to begin with, and Germany contributes more than Greece.

 

[gorion]

EU money comes from Member States to begin with, and Germany contributes more than Greece.

Which is quite normal when you consider GDP difference.

Germany also has a discount on VAT share to pay to EU (together with Netherlands, Sweden and Austria).

But then again, no politics we've been told,I'll stop now.