Apple Plans 'High-Tech Manufacturing' of Data-Center Gear in Arizona (businessinsider.com)

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Apple Plans 'High-Tech Manufacturing' of Data-Center Gear in Arizona (businessinsider.com)

Posted by msmash on Monday January 9, 2017 @08:45AM from the rare-instance dept.

An anonymous reader shares a Business Insider report: Apple is seeking permission to conduct "high-tech manufacturing" and to build data-center server gear in a Mesa, Arizona, facility, according to a notice published Monday by the US federal government. A notification published in the Federal Register on Monday said Apple was looking for approval from the Foreign-Trade Zones Board to produce "finished products" in a special zone that exempts it from customs duty payments. "Apple Inc has repurposed the site as a global data command center that will conduct high-tech manufacturing of finished data center cabinets for other data centers," according to a document filed by Mesa on behalf of Apple in June and made public Monday. [...] The Arizona effort would mark a rare instance of a US tech company manufacturing and assembling a finished product domestically, where labor costs are higher. Apple's effort appears limited to equipment for its internal operations, however, rather than for a mass-market consumer product.

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Ha HA! by Anonymous Coward · 2017-01-09 08:46 · Score: 2, Interesting

Trump Wins Again!
1. Re:Ha HA! by Anonymous Coward · 2017-01-09 09:31 · Score: 1
  
  Trump wins big jobs for robots; Apple legally dodges stiff import duty.
  Who's winning here?
  Looks to me like it isn't the American People.
2. Re:Ha HA! by ColdWetDog · 2017-01-09 09:50 · Score: 1
  
  You will be. You will be. /Yoda
  
  --
  Faster! Faster! Faster would be better!
3. Re:Ha HA! by Swave+An+deBwoner · 2017-01-09 09:52 · Score: 1, Interesting
  
  Coming in 3..2..1.. Robots are people too.
  https://en.wikipedia.org/wiki/Corporate_personhood
4. Re: Ha HA! by Anonymous Coward · 2017-01-09 10:43 · Score: 1
  
  You will be when you get drafted to fight the Chinese.
5. Re:Ha HA! by ShanghaiBill · 2017-01-09 11:05 · Score: 5, Informative
  
  Apple legally dodges stiff import duty.
  1. The import duties are not "stiff". They are only a few percent.
  2. Apple is not "dodging" them. The import duties would still apply for any imported components if the final product is consumed domestically. But no duties would be paid if the final product is exported ... but without the waiver, Apple would be entitled to a refund on those duties anyway, so the net result is just simplifying the paperwork.
  
  Who's winning here? Looks to me like it isn't the American People.
  A modest number of jobs will be created. Unnecessary bureaucratic overhead will be eliminated. How is that not a win?
6. Re:Ha HA! by Applehu+Akbar · 2017-01-09 12:06 · Score: 1
  
  Actually, Apple will be using that industrial facility in Mesa (Phoenix suburbs) that it inherited from its failed sapphire glassmaking affiliate a few years ago. When Apple took over the facility, we all know they had plans for it down the road. This is right in the middle of a valley full of Intel fabs and software developers. As the Peoples' Republic of California steadily becomes a less attractive place to make silicon, it is Arizona that will benefit.
  We also just nabbed the Uber autonomous car testing operation. These are all jobs way, way beyond the taco.
7. Re:Ha HA! by hackwrench · 2017-01-09 15:42 · Score: 1
  
  I don't know why you are mentioning Virginia. Trump Tower is in New York City, New York, isn't it?
8. Re:Ha HA! by AmiMoJo · 2017-01-09 20:41 · Score: 1
  
  While it's nice, it's not really "manufacturing"... Assembly perhaps.
  Tesla ships nearly complete cars to Europe for final assembly to avoid import duties. The cars aren't really made in Europe, the vast majority of the work is done in the US. Similarly, it sounds like Apple is just assembling some parts most likely manufactured in China, and knowing Apple it's probably some kind of tax dodge.
  This is probably the best you can hope for from Trump's efforts. Not real manufacturing in the US - the supply chains are long gone, and a 4 year term isn't nearly long enough to build them up again - but some final assembly and a dubious "Made in America (TM)" sticker slapped on. And in 4 years time, a lot of that will be robots.
  
  --
  const int one = 65536; (Silvermoon, Texture.cs)
  SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
Server Racks by Major+Blud · 2017-01-09 08:49 · Score: 3, Funny

"conduct high-tech manufacturing of finished data center cabinets for other data centers"
Stores forty-two 1u servers in a stylish brushed aluminum housing. Introducing the New Apple iRack Pro.

--
If you post as Anonymous Coward, don't expect a reply.
1. Re:Server Racks by sbrown7792 · 2017-01-09 08:52 · Score: 2
  
  Except that the entire thing is unibody and if a cable goes bad between "servers", it's cheaper to replace the entire rack.
2. Re:Server Racks by pushing-robot · 2017-01-09 09:23 · Score: 2
  
  The iRack looks unstable!
  
  --
  How can I believe you when you tell me what I don't want to hear?
3. Re:Server Racks by networkBoy · 2017-01-09 09:25 · Score: 2
  
  Heavy, less space than a petabox, lame.
  
  --
  whois gawk date unzip strip find touch finger mount join nice man top fsck grep eject more yes exit umount sleep dump
4. Re:Server Racks by geekmux · 2017-01-09 09:26 · Score: 3, Insightful
  
  "conduct high-tech manufacturing of finished data center cabinets for other data centers"
  Stores forty-two 1u servers in a stylish brushed aluminum housing. Introducing the New Apple iRack Pro.
  Apple wanting to put their artistic flair inside a data center is akin to an artist painting the inside of a toilet bowl.
  The only time anyone is going to see it is when things get really shitty.
5. Re:Server Racks by unixisc · 2017-01-09 09:29 · Score: 1
  
  So essentially, this is metal furniture that is somehow passed off as 'High-Tech' due to some connector that may be there b/w the racks?
6. Re:Server Racks by TheFakeTimCook · 2017-01-09 09:31 · Score: 1
  
  "conduct high-tech manufacturing of finished data center cabinets for other data centers"
  Stores forty-two 1u servers in a stylish brushed aluminum housing. Introducing the New Apple iRack Pro.
  The XRack!!!
7. Re:Server Racks by amicusNYCL · 2017-01-09 09:38 · Score: 1
  
  When they say finished data center cabinets for their other data centers, I assume that means with all of the hardware already installed, ready to be shipped to one of their data centers, installed, and powered on. I doubt it means an empty cabinet. The empty cabinet is one of the parts, along with all of the various hardware and networking components.
  
  --
  "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
8. Re:Server Racks by Swave+An+deBwoner · 2017-01-09 09:56 · Score: 1
  
  Yes. It sounds to me also like "Computer manufacturer (Apple) will build servers for their own (Apple) computer installations. Like, wow man, that's awesome!"
9. Re:Server Racks by David_Hart · 2017-01-09 10:04 · Score: 2
  
  Except that the entire thing is unibody and if a cable goes bad between "servers", it's cheaper to replace the entire rack.
  And next year's rack will be so awesome that it will only support official Apple PDU accessories and require new magnetic power cords...
10. Re:Server Racks by jazzis · 2017-01-09 12:37 · Score: 1
  
  When they say finished data center cabinets for their other data centers, I assume that means with all of the hardware already installed, ready to be shipped to one of their data centers, installed, and powered on. I doubt it means an empty cabinet. The empty cabinet is one of the parts, along with all of the various hardware and networking components.
  Damn man; you must be new here.... You are making too much sense. Stop Making Sense
11. Re:Server Racks by AmiMoJo · 2017-01-09 21:03 · Score: 1
  
  Rumour has it they will be removing the network ports and going wifi only next year.
  
  --
  const int one = 65536; (Silvermoon, Texture.cs)
  SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
12. Re:Server Racks by amicusNYCL · 2017-01-10 06:41 · Score: 1
  
  I like how they individually list "transistors" and "capacitors", but then also list "servers". They also list "smart cables", "data server cables", "copper and power cables", "optical fiber cables", and then just "cables". Someone got paid by the word.
  
  --
  "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
Ad block blocker by houstonbofh · 2017-01-09 08:50 · Score: 3, Interesting

If the site does not allow my Ad Block to run, I ain't looking. A warning would be nice. An alternative would be nicer.
1. Re:Ad block blocker by oh_my_080980980 · 2017-01-09 09:16 · Score: 1
  
  try uBlock Origin - it's better.
2. Re:Ad block blocker by subk · 2017-01-09 09:19 · Score: 2
  
  If the site does not allow my Ad Block to run, I ain't looking. A warning would be nice. An alternative would be nicer.
  If the site displays a message that you must turn Ad Block off, just refresh and press escape a few times as soon as the article's text appears. This will generally work to stop the script that pulls up the ad blocking message.
  
  --
  Now, if you'll excuse me, I have backups to corrupt.
Re:Watch Trump's Twitter feed by chispito · 2017-01-09 09:03 · Score: 2

Wait for der Drumpfenfuhrer to take credit for this.
The sixth comment in and you managed to Godwin the thread. Keep up the good work.

--
The Daddy casts sleep on the Baby. The Baby resists!
Are they just avoiding import tariffs? by stabiesoft · 2017-01-09 09:06 · Score: 5, Insightful

I quickly scanned the article. My impression was they will screw them together in mesa, and all the pieces will be imported. By "finishing" the product in mesa they avoid customs on all the pieces. Before, they actually screwed them together in NC, Oregon, etc, the places they were used, and probably had to pay import taxes on the components. So net, no new US jobs, probably fewer since centralizing the finishing will optimize the process.
1. Re:Are they just avoiding import tariffs? by Anonymous Coward · 2017-01-09 09:08 · Score: 2, Insightful
  
  This. I'm not sure why this is being published as a puff piece on Apple when they're really pulling a scheme that auto manufacturers perfected decades ago.
2. Re: Are they just avoiding import tariffs? by fermion · 2017-01-09 09:16 · Score: 2
  
  Yes. It is to avoid taxes. Very few jobs as the robots will do the actual manufacturing. Arizona is not known for its labour force.
  
  --
  "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
3. Re: Are they just avoiding import tariffs? by fluffernutter · 2017-01-09 09:22 · Score: 1
  
  I have it upon good authority that there are people in Arizona who are capable of screwing.
  
  --
  Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
High-tech manufacturing = Robots by Camel+Pilot · 2017-01-09 09:10 · Score: 4, Insightful

"The Arizona effort would mark a rare instance of a US tech company manufacturing and assembling a finished product domestically, where labor costs are higher"
Well that is because of this key phrase...
"high-tech manufacturing"
Meaning there will be very little labor and lot of robots.
1. Re:High-tech manufacturing = Robots by NatasRevol · 2017-01-09 09:34 · Score: 1
  
  Welcome to the future. This will be the case everywhere going forward. No blue collar jobs, save robot repair, will be coming back.
  
  --
  There are two types of people in the world: Those who crave closure
2. Re:High-tech manufacturing = Robots by gosand · 2017-01-09 10:43 · Score: 1
  
  Well that is because of this key phrase...
  "high-tech manufacturing"
  Meaning there will be very little labor and lot of robots.
  Only if Trump gets his wall.
  
  --
  
  My beliefs do not require that you agree with them.
3. Re:High-tech manufacturing = Robots by Joe_Dragon · 2017-01-09 11:51 · Score: 1
  
  and then the robot work tax (lower then the import tax) will pay for basic income.
As an apple fan by dhaen · 2017-01-09 09:14 · Score: 2

I regard this as bolloxing of the law.
Heat? by Tablizer · 2017-01-09 09:26 · Score: 1

Isn't AZ too hot? Do you really want a data center where the temperature quite often approaches 110 degrees? You'll need "turbo" A/C. Doesn't seem economical.
Why not Idaho? Cooler weather, low taxes, and cheap real-estate.

--
Table-ized A.I.
1. Re:Heat? by Tablizer · 2017-01-09 09:28 · Score: 1
  
  Correction, it's not a data-center itself, but electronic manufacturing is still an energy-intensive industry.
  
  --
  Table-ized A.I.
2. Re:Heat? by ncc74656 · 2017-01-09 09:45 · Score: 2
  
  Isn't AZ too hot? Do you really want a data center where the temperature quite often approaches 110 degrees?
  
  Las Vegas isn't much cooler than Phoenix (maybe 10 degrees most of the time), yet Switch is doing booming business here with datacenters popping up all over town. The temperature outside hasn't been much of an impediment for them.
  
  --
  20 January 2017: the End of an Error.
3. Re:Heat? by jedidiah · 2017-01-09 09:54 · Score: 1
  
  Serious server gear can function in 100+ temperature so long as that's a stable temp. I had a rack of Sun gear in Vegas we kept in a closet. Our cooling "solution" was always failing.
  Sun support said the gear could handle it.
  
  --
  A Pirate and a Puritan look the same on a balance sheet.
4. Re:Heat? by amicusNYCL · 2017-01-09 09:55 · Score: 2
  
  Do you really want a data center where the temperature quite often approaches 110 degrees?
  Sure. Here's one. Take a tour. They have a facility in Scottsdale, too. Other companies host here, also. Digital Realty has nearly 1 million square feet of data center space in the county.
  
  Why not Idaho? Cooler weather, low taxes, and cheap real-estate.
  Idaho has a single tier-3 data center. Compared to Phoenix, I'm sure the major difference is the concentration of top-tier networks already here in Phoenix. I doubt there are as many top-tier networks running through Idaho. We also have cheap power and land, but I'm sure the prices in Idaho aren't very high either. Then again, there aren't many people in Idaho and it pays to locate your equipment near to the population centers. The population of all of Idaho is about 1.6 million, while about 4.5 million live in metro Phoenix. Intel, Motorola, and Honeywell also have a lot of major facilities here, I'm sure for many of the same reasons as the data centers.
  
  --
  "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
5. Re:Heat? by rickb928 · 2017-01-09 10:11 · Score: 1
  
  There is a lot of dark fiber around. Idaho could be a data center hub in 90 days, and centers constructed in 180.
  Cheap power, cold air for free half the year, just the winter snow as a threat.
  
  --
  deleting the extra space after periods so i can stay relevant, yeah.
6. Re:Heat? by mea_culpa · 2017-01-09 10:14 · Score: 2
  
  Mesa sees an average of 301 sunny days each year. Solar power is now at or near parity for grid power and continues to get cheaper. The heat isn't going to cost anything extra in long run.
7. Re:Heat? by mea_culpa · 2017-01-09 10:16 · Score: 1
  
  There's this small company that I love to hate called GoDaddy here also.
8. Re:Heat? by Applehu+Akbar · 2017-01-09 12:13 · Score: 1
  
  "Isn't AZ too hot? Do you really want a data center where the temperature quite often approaches 110 degrees? "
  A stable energy supply (hydro plus nuclear in this case) trumps low temperature as a manufacturing parameter.
9. Re:Heat? by scatbomb · 2017-01-09 12:17 · Score: 1
  
  Big deal, slap some solar panels on the roof to power the A/C. Problem solved.
Works for me and I have Ad-Blocker turned on by Nova+Express · 2017-01-09 09:30 · Score: 1

I have the following blocked:
http://ads.rubiconproject.com/...
http://adserver-us.adtech.adve...;
http://ak.sail-horizon.com/hor...
http://ak.sail-horizon.com/sco...
http://cdn.krxd.net/controltag...
http://cdn.taboola.com/libtrc/...
http://cdn.tinypass.com/xbuild...
http://player.ooyala.com/ooyal...
http://player.ooyala.com/stati...
http://staticxx.facebook.com/c...
http://www.googletagmanager.co...
http://www.googletagservices.c...
https://bam.nr-data.net/1/4b41...
https://static.chartbeat.com/j...
https://staticxx.facebook.com/...
Maybe the tinypass is the thing to block?
I also have RefControl and GreaseMonkey installed. Those might help.

--
Lawrence Person (lawrencepersonh@gmailh.com (remove all "h"s to mail)
http://www.lawrenceperson.com/
Re:Watch Trump's Twitter feed by NatasRevol · 2017-01-09 09:30 · Score: 4, Insightful

If mentioning Trump is now 'godwinning' a thread, comments worldwide may as well be shut down now.

--
There are two types of people in the world: Those who crave closure
Re:Not so fast by oh_my_080980980 · 2017-01-09 09:32 · Score: 3, Informative

They already got it:

"Foreign-trade zones are essentially outside US customs territory, which means companies can avoid duties when exporting or importing merchandise. The US government supports the zones to help create jobs through "the encouragement of operations in the United States which, for customs reasons, might otherwise have been carried on abroad."

"On its domestic sales, Apple would be able to choose the duty rate during customs entry procedures that applies to finished server assembly cabinets (duty-free) for the foreign-status materials/components noted below and in the existing scope of authority," the notice continues.
"data-center server gear" by rickb928 · 2017-01-09 10:09 · Score: 1

Given Apple's vast knowledge and past history, this seems like either a waste of time or a significant effort to break new ground.
Ha. Get out the popcorn and prepare to shovel the blood.

--
deleting the extra space after periods so i can stay relevant, yeah.
1. Re:"data-center server gear" by Cmdln+Daco · 2017-01-09 10:51 · Score: 1
  
  Hey now, the SE/30 was a great little server.
Obviously... by EmeraldBot · 2017-01-09 10:13 · Score: 1

Watch out, people of Mesa! They're coming for your houses! They're coming for your low price commodities! They're coming for your open source OpenGL graphics stack! These are grave times for Arizona, indeed....

--
"Set a man a fire, he'll be warm for the rest of the night. Set a man afire, he'll be warm for the rest of his life."
What haveing the xserve come back or run in vm by Joe_Dragon · 2017-01-09 10:38 · Score: 1

What having the xserve come back or let people run mac ox server in a vm on any Base Hardware?
Get rid of the Ensure your physical system is an Apple-labeled computer Rule.
If there is an xserver it needs at least dual gig-e or dual 10-gig-e + IPMI.
Re:Sounds like another Trump job to me by Cmdln+Daco · 2017-01-09 10:44 · Score: 1

Just cabinets for server hardware.
Re:Putin maybe? NSA? by Swave+An+deBwoner · 2017-01-09 12:47 · Score: 1

Apple was reportedly having serious problems with hardware coming into their data centres being tampered with.

You'd think that would have provided enough economic / reputational incentive for them to build their stuff here without requiring corporate welfare schemes.
Maybe Apple should sell this stuff... by mlts · 2017-01-09 12:54 · Score: 2

In my personal experience, Apple stuff is still widely regarded as high end in a lot of workplaces. Should Apple be able to step into the enterprise, it would definitely be a large market. It isn't like Apple hasn't been there, because with the XSan, Apple was the #2 selling storage vendor for a while (long time ago, but still notable.)
Ideally, Apple should spin the enterprise division off, similar to Filemaker/Claris. That way, the toymaking arm can focus on new shinies while a dedicated company can work on what enterprises need. Heck, take the XServe... it may not have been a hit, but it was a very solid piece of equipment for its time. Done right, Apple could keep a premium price point and compete with things like UCS, but it would take some design (perhaps a hypervisor in the BIOS so machines can be racked/stacked/wired, turned on, and immediately be ready for taking VM or distributed storage loads), but with all the cash in Apple's war chest, they could buy Nutanix or StarWind Software and be in the enterprise game in no time.
Yes, and what's the problem? by scatbomb · 2017-01-09 14:27 · Score: 1

If the creation of 500 or 1000 robot jobs leads to a factory being built which employs 100 people, how is that a bad thing?
Networking Team Quit by pgn674 · 2017-01-09 14:50 · Score: 1

I wonder if this is related: 'Cultlike' Devotion: Apple Once Refused To Join Open Compute Project, So Their Entire Networking Team Quit - Slashdot
Re:Watch Trump's Twitter feed by kuzb · 2017-01-09 16:00 · Score: 1

Mentioning trump isn't, but slurs like "Drumpfenfuhrer" is attempting to nazi up trump, which IS godwinning up a thread.

--
BeauHD. Worst editor since kdawson.
Apple assembling domestically for a while by Wild_dog! · 2017-01-09 16:11 · Score: 1

I think my 2012 iMac was assembled at least partially here.
Apple has been bringing what they can to the US where it makes sense from a business perspective I think.
Feel free to correct me if you think I am wrong or have other information.
Re:Watch Trump's Twitter feed by NatasRevol · 2017-01-10 04:00 · Score: 1

Well, you are who your friends are.

--
There are two types of people in the world: Those who crave closure
Re:Watch Trump's Twitter feed by chispito · 2017-01-10 08:01 · Score: 1

If mentioning Trump is now 'godwinning' a thread, comments worldwide may as well be shut down now.
How did you manage to defend the comment without even reading it? I quoted it for you. It is not hard.

--
The Daddy casts sleep on the Baby. The Baby resists!
Re:Putin maybe? NSA? by Coren22 · 2017-01-11 09:35 · Score: 1

I'm trying to figure out what tampering Putin or the NSA would do to a server rack.
This won't solve the problem of tampering with servers, as they presumably will still be built overseas.

--
APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?