I always find it odd that companies always want to be build things outside of their home state
TSMC -> US
Intel -> EU
Toyota -> US
Honda -> US
Ford -> MX / Canada
GM -> MX / Canada
TSMC -> US
Intel -> EU
Toyota -> US
Honda -> US
Ford -> MX / Canada
GM -> MX / Canada
I find it more odd to presume that corporations have some nationalistic competitive interest.
For the current trend to move to the US. That has to be government funding. Luckily, fabs require large investments at the start which might break-even more expensive labor. Also, maybe some more automation in the fabs could also help in making the fabs cost competitive.
While a factor, labor costs alone are the primary reason. In reality is more about the wider regulatory burden on a company, including environmental controls
That said it does not explain why a Japan Company can make cars profitably in the US but a US Manufacturer can not.
If it was only labor why would Toyota not have a factory right next to GM's in Mexico and import cars from Mexico to the US?
I think making cars in Mexico for the US became less worthwhile when Trump pulled the US out of NAFTA.
lol, trump did not "pull the US Out of NAFTA" not only is that not with in the power of the president to do, it was never on the table, NATA was replaced with USMCA, and only made a few small changes, for Automotive that means 75% of the vehicle components must be made in MX, US, or Canada, up from 64% under NAFTA
Nothing in the law would impact making at car in the US vs MX, and was aimed at preventing increased parts from China or other non-north American nations, and all of the changes were passed by congress with wide bipartisan support
Both were proposed changes that were not adopted in the final version.
Interestingly enough the “Clean Energy for America” bill pushes for additional tax incentives on EV's built by companies using union labor:
More specifically, the proposal says that electric vehicles assembled in the United States would qualify for a $10,000 tax credit while EVs that are built at facilities whose production workers are members of, or represented by, a labor union would be eligible for the full $12,500 credit.
It doesn't even make a lot of sense as an incentive to have workers unionize, since why would workers care what price what they're selling cars for. The law would only exist to benefit existing unions.
1. By operating a local subsidiary, you avoid unfavorable regulation and sometimes protectionism (Toyota/Honda/Intel).
2. Cost savings (transportation, labor, taxes, etc).
3.Proximity to customers.
you dont pay tariffs if you produce locally. not hard to understand.
Good luck with that bet in the future.
It's incredibly provincial to think of multinational companies so simply.