Chip Manufacturers Hope Trump Will Make The U.S. More Competitive For Development
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Computer chip makers want President Donald Trump to make the U.S. more attractive for manufacturing investment.
U.S. manufacturing has been in decline for years and the sector recently posted weak results. U.S.-based companies still dominate computer chip sales, but manufacturing has increasingly moved to other countries. In 2015, the U.S. held about 13% of the world's chip manufacturing capacity, down from 30% in 1990, the New York Times reports.
Chip makers said they hope the president will cut corporate taxes and offer competitive subsidies, saying it costs about $2B more to build a modern semiconductor plant in the U.S. than abroad.
In a show of faith in the new administration, Intel CEO Brian Krzanich recently pledged to spend $7B to complete a leading-edge chip factory in Arizona. The factory will add 3,000 jobs and industry execs hope that is only the beginning.