Foxconn gets green light for $270M factory in Vietnam
appleinsider.com
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https://www.theguardian.com/us-news/2020/dec/08/wisconsin-fo...
> The village notified her subdivision’s residents that it would use eminent domain to seize their homes if they didn’t accept a relocation offer.
Projects started using eminent domain and destroying lives rarely succeed
Is there data on this? I’ve heard the opposite from admirers of more authoritarian governments, which “get things done” in part by moving quickly because they don’t have to deal with eminent domain proceedings.
https://en.wikipedia.org/wiki/Kelo_v._City_of_New_London
Pfizer wanted the land and said they would create jobs and give the state more tax revenue, the state said "well that sounds like 'public use' to us," seized the land, bulldozed the houses, wasted tens of millions of taxpayer dollars, and then Pfizer picked up and moved out of town.
https://www.nytimes.com/2009/11/13/nyregion/13pfizer.html
Nothing was built and the property where the homes were demolished still sits vacant:
[1] https://podcasts.apple.com/us/podcast/kelo-v-new-london/id14...
Compare this to NYC/NY State's now-cancelled but well structured deal for Amazon, where they stood to make a 9:1 return on investment, with only $505m in capital outlays for the public, and that itself was tied to a minimum $3b investment from Amazon, with projected new revenue of $28 billion for the city and state over 25 years (https://ny.curbed.com/2018/11/16/18098589/amazon-hq2-nyc-que...). NY gets a lot of flak for mismanagement on other fronts (for example transit infrastructure) but they were able to select the right incentives, terms, and conditions to create a highly favorable subsidy deal that wouldn't have left them high and dry if the company changed direction.
My conclusion from all this being - it doesn't make sense to demonize either subsidies or eminent domain or whatever else, as much as it does to just demand competence.
It's easy for politicians and companies to make nice PR statements about theoretical jobs that will be created but reality frequently doesn't live up to it
These sort of subsidizes should be banned. Cities should complete on infrastructure and we'll educated work force not giveaways
Personally, I don't think subsidies should be banned, because public agencies must be allowed the freedom to make smart business decisions when the opportunities arise. The one danger I see is that big corporations that can navigate the legal and political landscape may have better access to these deals than a smaller player, which stifles competition. To fix that, my suggestion is that any subsidy deal should also be made available in some smaller scaled-down form to smaller competitors.
They have the possibility of doing things quickly, but also by its nature they aren't subject to much transparency, review, criticism, or accurately reporting results.... thus they really don't even have to be very good or fair about it ...
Mussolini didn't actually make the trains run on time; he only convinced people he did.
Others, such as Mussolini's, just use the authority to give fat contracts to corporations they have friends in and aestheticize the solution.
It's a real risk.
In 2013, Foxconn promised to spend $30 million over two years building a robotics manufacturing facility in Harrisburg, Pennsylvania that would have employed five hundred people. They also planned to invest $10 million into R&D at Carnegie Mellon University (CMU) as part of the arrangement. In return, the state, county, and city offered Foxconn tax incentives and property improvements. Seven years after the ribbon cutting ceremony, the property is still an empty lot and CMU never received the investment.
On the plus side, nobody's home was seized as they were in Wisconsin.
It also eats away at the earning potential of the middle and lower classes in more advanced nations. If your nation's cost of living is high, finding a way to outsource your economic productivity is the goal of a titanic mountain of cash.
Because of this economic uncertainty, it ALSO makes some middle and a lot of lower class people in advanced nations latch onto the first nationalist they see.
I love the Intel museum at their campus, but have never been inside a Fab or even a computer assembly factory (or automotive factory, etc). Closest I've come is the place where they make all the Cape Cod Potato chips.
If you were to put together a world "most advanced factories" sightseeing tour, what would be on the list?
I myself only saw Chinese manufacturing, and to lesser extend Vietnamese (which is mostly run by Chinese, and Japanese anyways.)
The PCB stages were fully automated for decades, and even very small shops may have zero manual population. PCB shops look more or less the same anywhere in the world.
Most interesting things come after that.
"Robots" are very easily beaten on cost by manual labour unless there is crazy commitment to volumes, long production runs, and having robotisation done very thoroughly.
Automation has economic advantage in very narrow sets of circumstances.
Though the variance in non-automated assembly lines can be giant. You can easily spend 10 times to assemble a widget with same amount of people, and equipment by getting the process management wrong.
Go find me a reasonably profitable machine shop that doesn't have mostly CNC machines. You won't find many. Even in places with low cost labor like China CNC machines are pretty ubiquitous outside of fairly specialty shops.
You can look on YouTube and see tons of examples of factories that have a mixture of robotic automation and human labor. The production world has changed a ton in the last ten to fifteen years!
CNC machines add capabilities that are not possible by hand. In these shops, you might see deburring done as an extension of the machine cycle where labor cost is high, but by hand where it is low.
GP is right that automation is a huge commitment in design and manufacture. If there are any finicky parts, it's likely that humans will have to do or correct the robot's job, and now you have an idle robot and an engaged human.
Batteries are too a very easy to understand case for automation. You have to make a single widget without alterations by billions for year on end — exactly the case for maximum automation.
Thank you!
https://www.theguardian.com/environment/2016/jul/01/vietnam-...
Vietnamese in the South generally have beef with Chinese though, not Taiwanese