The Biden administration is providing $162 million to Microchip Technology to support the domestic production of computer chips — the second funding announcement tied to a 2022 law designed to revive U.S. semiconductor manufacturing.

The incentives include $90 million to improve a plant in Colorado Springs, Colorado, and $72 million to expand a factory in Gresham, Oregon, the Commerce Department said. The investments would enable Microchip Technology to triple its domestic production and reduce its dependence on foreign factories.

Much of the money would fund the making of microcontrollers, which are used by the military as well as in autos, household appliances and medical devices. Government officials said they expected the investments to create 700 construction and manufacturing jobs over the next decade.

  • CandleTiger@programming.dev
    link
    fedilink
    arrow-up
    2
    ·
    11 months ago

    Russian Lada was a “people’s car” that (like other Soviet products) was built for internal use and protected from competition. When the Soviet Union fell and Russian car manufacturers were exposed to competition, they eventually went out of business.

    The story is not that simple though. The Lada was a really popular and robust car. It lived on for a long time and exported versions to Canada and other places using Western fuel-injected engines. I have no idea what happened to the company in the end but it seems clear at least to me that it was the sudden huge change in competitive landscape that did it in, not the industrial planning.

    Škoda is a similar car brand from (at the time) Yugoslavia that managed to survive the fall of the Soviet Union and is still active as a brand today.

    • Joncash2
      link
      fedilink
      arrow-up
      2
      ·
      11 months ago

      This part:

      the sudden huge change in competitive landscape that did it in

      IS caused by industrial policy. That’s the whole point. They can’t keep up with competitive landscapes because the policy made it good enough then they just stopped and since it’s protected there’s no reason to improve.

      Yes, the initial version was popular, but industrial policy preventing it from advancing was it’s death.

      You literally explained how industrial policy killed it and then said it wasn’t industrial policy.