Recently The Wall Street Journal has reported about the changes in the Trump government and administration where a decision has been passed for industrialists to build few major manufacturer factories in the US. While the report is still not confirmed, it is said that major negotiations and talks are being administered between the government and manufacturers. Sources have also reported that Intel has a more detailed proposal to operate a plant that “safely” manufactures chips playing on the government’s fears of depending on overseas-based processor plants.
Since it’s a well-known fact that Trump’s record hasn’t yet failed on the abysmal scale of US Manufacturing, so it’s a risky gamble to expect a crop of new American processor factories to spring up, at the same time, he’s boasted many times about tech sector accomplishments. Still, many of these have been nothing but absolute whoppers. Among them is the persistent lie that he has repeatedly been heard telling the media about a “new’ Texas Apple Factory. According to the article through the Journal has indicated that things may be more serious than just a photo-op of the president.
TSMC, which manufactures the A-series chips from Apple, has reportedly spoken to Apple and all the important government agencies about building a factory unit in the US. And it has been seen that the Intel is eagerly willing to participate as told by Intel VP Greg Slater to the Wall Street Journal, “We’re very serious about this,”
It is fair enough to believe that the chipmakers are simply reacting to the potentially lucrative market of defense contracts without further information about these talks and plans. The Journal also pointed out an interesting fact about a letter sent by Intel CEO Bob Swan to the Department of Defense on April 28th, where it was carefully written that “it is in the best interest of the United States and of Intel” for exploring in the US the process of a commercial chip foundry.
Thanks to the COVID-19 pandemic, US skepticism has risen high about the advantages of globalization. It may be strong, but bringing out a tech manufacturing unit to the US is not as easy as doing a heart change. It should be noted that the current supply chain efficiencies that have taken place from over a decade of investment in overseas manufacturing cannot be so easily reversed. Even though these talks turn into something specific, we shouldn’t keep high hopes and expect to be seeing the manufacturing of Apple’s chips in the US anytime soon.
However, Trump rallied against American companies in the early days of his campaign that he alleged has left many American unemployed due to outsourced jobs overseas. The, then president when elected, threatened to place a tariff of 45 percent on Chinese imports in an attempt to punish companies developing products overseas.
The president after being elected took to Twitter and boasted about Ford saying “Just got a call from my friend Bill Ford, Chairman of Ford, who advised me that he will be keeping the Lincoln plant in Kentucky – no Mexico,” he also added, “I worked hard with Bill Ford to keep the Lincoln plant in Kentucky. I owed it to the great State of Kentucky for their confidence in me!” But in all this, there was cliché, since Ford has never planned to move its unit of Louisville, Kentucky to Mexico.
Ford rather opted to keep its manufacturing line at the Louisville facility. The company, after or before, never announced any shutting down of their plants or moving it across the border as what Trump has asserted in his Twitter account. Ford stated the rumors, stating that, “We are encouraged that President-elect Donald Trump and the new Congress will pursue policies that will improve US competitiveness and make it possible to keep production of this vehicle here in the United States. Later Ford announced his moving his production unit to Mexico from Michigan, explaining how they need to make more room at the production factory for their latest two new products.
Image source: The Verge