Thursday, August 26, 2010

U.S. Government Unfriendly Towards Businesses

I know, I know, not exactly a news flash.

Regardless, here is some interesting insight from the CEO of Intel.

"I can tell you definitively that it costs $1 billion more per factory for me to build, equip, and operate a semiconductor manufacturing facility in the United States," Otellini said.
The rub: Ninety percent of that additional cost of a $4 billion factory is not labor but the cost to comply with taxes and regulations that other nations don't impose. (Cypress Semiconductor CEO T.J. Rodgers elaborated on this in an interview with CNET, saying the problem is not higher U.S. wages but antibusiness laws: "The killer factor in California for a manufacturer to create, say, a thousand blue-collar jobs is a hostile government that doesn't want you there and demonstrates it in thousands of ways.") 

http://news.cnet.com/8301-13578_3-20014563-38.html?tag=mncol;1n

The interview linked from the story above, offering more detail into why it's so much more expensive to create a semiconductor fabrication plant in the U.S. than elsewhere in the world.
http://news.cnet.com/2008-1006_3-5215272.html

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