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AMD Receives $683M for Dresden Plant
Cocooner writes "Infoworld has an article explaining how AMD received $683 million in grants from Germany and the state of Saxony for its next-generation microprocessor wafer facility. The new plant will be located in Dresden, adjacent to Fab 30 and will be called Fab 36. It will be the first AMD 300mm manufacturing facility."
That may seem initially true, but there are bound to me massive general economic effects from employing 1000 highly skilled workers and their families, and all the increased support business that would come up around them.
If your theory is different from practice, then your theory is wrong.
Why would the government give a $683M break to AMD to get 1000 jobs? That's two thirds of a million bucks per job.
Well, first of all it's in grants and allowances, so the governemnt probably doesn't look at it as "real money" - and I'm guessing it's probably spread out over a long period of time, ie tax breaks for the next x years.
Secondly, they are probably figuring that the plant will make suppliers and customers of AMD move nearby, thus providing more jobs and taxes. It's debateable if this actually works, but that's probably their thought process.
I have blog like everyone else
"...AMD received $683 million in grants from Germany and the state of Saxony for its next-generation microprocessor wafer facility."
:)
it's not like AMD is gonna change the money into
euro coins and stack them to make a nice looking
factory made from coins, no sir.
the question really is:
who owned the land before AMD bought it (tax?).
who is building the factory(tax?).
who is supplying power(tax?).
who is building the generators that produce
the needed electricity(tax?).
who gets to have a peek at the technology (know-how) once complet(no tax!)
who gets know-how for building a chip
producing factory? (def. more to come!)
etc.
this is a micro investment and the reward is def.
going to pay off as long as people have to use
computers (e.g. no telepathy available).
no, but the other 2billion Euro's that AMD is spending will stay in the german ecconomy..
So the govermnet spends 600millon,
to put a total of 2.5 billion in the ecconomy.
you are right, its not 1 becomes 2,
its 1 becomes 4.
You have 5 Moderator Points!
Which Helpless Linux zealot/MS basher do you want to mod down today?
Eastern Germany suffers from extreme unemployment (up to 20% in some areas) and has been in an economical crisis since the wall came down. The unemployment is the reason for the collapsing German welfare state.
Creating jobs and building an industry should be the #1 East German priority. The government did the right thing.
when a US company builds a US factory.
In the same way it would not be remarkable when a German company built a German factory, nor when an Indian company built an Indian factory.
It is a bit more remarkable when the US business drones without brains build another facility outside the US, then complain that US consumers arent buying it's products. Everyone is worried about the "jobless recovery", but they fail to point the fingers at themselves for shipping the jobs ( and salaries ) overseas. Mind you, I am not nessesarily of the "protectionist" mindset, but it does seem that some moderation is called for.
emt 377 emt 4