Samsung Is Thinking about Building a $10 Billion Chipmaking Plant in Texas

[Strelok]

Becoming? LOL. Austin has been stupidly expensive for as long as I can remember. Basically my same house in Plano would cost at least double anywhere near Austin proper. That's why the 'burbs are so popular down there now... Round Rock etc.

I'm a little shocked Samsung isn't looking at North Dallas / Plano / McKinney. They already have presence / buildings around here and it has to be cheaper than Austin. And DFW has similar talent pool as Austin.

Probably not, hence they are sticking with Austin. They already have a site there IIRC. Apple, AMD, IBM and a bunch of other companies have campuses there, so it makes sense.

 

[Dan_D]

Becoming? LOL. Austin has been stupidly expensive for as long as I can remember. Basically my same house in Plano would cost at least double anywhere near Austin proper. That's why the 'burbs are so popular down there now... Round Rock etc.

I'm a little shocked Samsung isn't looking at North Dallas / Plano / McKinney. They already have presence / buildings around here and it has to be cheaper than Austin. And DFW has similar talent pool as Austin.

I'd argue it has a better talent pool. The DFW area has a much bigger population and more workers that would be useful.

Property value in Dallas isn't doing bad either. Has doubled and and continuing to grow since 2010.

The reason they are putting the Plant in Austin is AMD is there, Apple is there, and Dell is there. So there is a good pool of talent to pull from. It's like IT service companies being in DFW (Plano), or Telco companies being in the telcom corridor in Dallas as well. Some Oil and Gas but the majority of that is in the Houston metroplex area.

Austin is the place in Texas with the focus on that area of industry. And yes their housing prices are becoming bonkers.

As someone who's been looking at the housing market (in DFW) since prior to 2010 and someone who's owned a house since 2012, I can tell you it hasn't quite doubled. It certainly has in the last 20 years, but not ten. Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.

 

[Grimlakin]

I'd argue it has a better talent pool. The DFW area has a much bigger population and more workers that would be useful.



As someone who's been looking at the housing market (in DFW) since prior to 2010 and someone who's owned a house since 2012, I can tell you it hasn't quite doubled. It certainly has in the last 20 years, but not ten. Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.

I was only speaking to the home I own. Purchase for 122 valued at 260.

 

[Brian_B]

IMAGINE the cost savings... lets say samsung builds a big *** plant here in Austin Texas or really just outside of it. AMD contracts with them to build CPU's and GPU's.. THEN passes the savings on to manufacturers (AIB's) to assemble in the US... and we get to buy cards 10% cheaper than the imported ones. (why not 25% Because part of that is increased cost of labor in the US.).

Wishful thinking. US labor is more than 15% more costly, and that’s before you get to the logistics problem. When Apple thought to make the Mac Pro in Texas, yeah, they could get labor, but the thing that sunk it was in China, if you needed a part, it was made around the corner. In Texas, they had to come up with new supply lines for every little part to the factory, and it was ultimately screws that held up US production for a good bit.

A custom screw was the bottleneck in US Mac Pro production | AppleInsider

A custom screw easily sourced in China held up the Mac Pro build process in Texas, with the tale highlighting one of the problems Apple faces if it moves iPhone and Mac assembly back to America.

www.google.com

 

[Grimlakin]

Wishful thinking. US labor is more than 15% more costly, and that’s before you get to the logistics problem. When Apple thought to make the Mac Pro in Texas, yeah, they could get labor, but the thing that sunk it was in China, if you needed a part, it was made around the corner. In Texas, they had to come up with new supply lines for every little part to the factory, and it was ultimately screws that held up US production for a good bit.

http://[URL]https://www.google.com/...-the-bottleneck-in-us-mac-pro-production/amp/

[/URL]

Point is if you want to resolve that you start at the screw and work your way up to the system. build out a complete supply line where you control the prices through wholly owned subsidiaries. Then you can report on the profits all the way to the top and if you need to take a L somewhere you pick a subsidiary to take the hit.

 

[LazyGamer]

Love the idea of more tech coming to Texas, but this means more economic refugees fleeing collectivism from California, only to try and replicate it when they arrive...

We need to get better at deinstitutionalizing these folks on arrival, IMO.


And a big part of choosing Austin is the tech universities available. Samsung wouldn't be coming if they couldn't set up certification and degree tracks with every accredited institution within a few hundred miles in order to staff their venture!

 

[magoo]

Went to Austin last year for a business conference.
**** place has construction cranes on nearly every block....
I agree, great food, good bars, people were quite friendly. I found it interesting that
almost no one was born and raised there.
The place reminds me alot of Boulder Colorado and Burlington Vermont.
Lots of young people with left leaning attitudes.....as demonstrated in the latest election.
Good for Austin that it can attract such mega business.

 

[Auer]

Large Companies will go to wherever its best for them, Kapitalism loves the labor costs of communism.

 

[Burticus]

Austin is a good 40% higher than Dallas is. Houston is cheaper than Dallas by a good 20%. Ft. Worth is a bit cheaper than Dallas as well.

You know what the difference is between Ft Worth and Houston? I would actually live in Ft Worth. You could not pay me to live in Houston. My mother lives down there and I hate it. She likes it because it's "warmer" down there than Dallas. What she calls warm, I call oppressive heat and humidity. I can break into a sweaty mess just walking from the front door to the car. And never mind the yearly hurricane + flood scares.

I suppose my opinion will change when I am 70+ and cold all the time.

 

[Dan_D]

You know what the difference is between Ft Worth and Houston? I would actually live in Ft Worth. You could not pay me to live in Houston. My mother lives down there and I hate it. She likes it because it's "warmer" down there than Dallas. What she calls warm, I call oppressive heat and humidity. I can break into a sweaty mess just walking from the front door to the car. And never mind the yearly hurricane + flood scares.

I suppose my opinion will change when I am 70+ and cold all the time.

I'm with you. Oppressive heat and humidity is a good way to describe the climate down there. I used to live in Houston when I was a kid. I've also been back there over the years from time to time. Fortunately, never for long. I bought my 2001 Camaro SS down there about three years ago in the summer time. I sweat through my gun holster being outside for 15 minutes. It's one reason I prefer full Kydex holsters now.

I generally prefer Dallas to Ft. Worth, but I have done work in both cities. I just know Dallas really well and all my friends are on the Dallas side of the Metroplex. Given the right circumstances I'd live in Ft. Worth. Especially, since its a good deal cheaper than Dallas and less liberal.