Cities and States Vie for Emerging Manufacturing
Over the past few years, two manufacturing sectors have been dominating markets: semiconductors and electric automobiles. Cities and states are hoping to capitalize on the boom by enticing manufacturers to build and renovate factories near their communities. This time around they are focusing on factors like workforce and infrastructure rather than massive subsidies as in the Wisconsin-Foxconn arrangement.
The Midwestern United States, a long standing stronghold of automotive manufacturing, is racing to make the transition to electric vehicles.
- In Michigan, General Motors is renovating is footprint of factories to retool for electric vehicles while the State looks to build out an electric vehicle charging network by 2030.
- Illinois seeks to build from the success of Rivian in Normal by creating the “Reimagining Electric Vehicles in Illinois, or REV Act, passed the General Assembly with near-unanimous bipartisan support during the recently concluded fall session. It provides tax credits for income tax withheld for EV manufacturers and costs to train new or retained employees.”
- Ohio can’t get enough of the Lordstown plant, with Foxconn and Fisker set to takeover from Lordstown Motors for EV development.
- Tennessee continues its push into the automotive industry with a new Ford EV project and strong economic development of the industry.
The Southwestern United States is more focused on building out its semiconductor fabrication capabilities, but is also making inroads into electric vehicle development and manufacture.
- Texas welcomed Tesla to Austin, and a short drive away in Taylor they recruited Samsung to build a chip plant.
- Arizona has been enticing semiconductor companies such as TSMC and Intel to the Phoenix area. Arizona is also looking to being a player in electric vehicle manufacture with a Lucid Motors factory.
- Nearby Nevada, is looking to monetize its abundant natural resource of lithium to maintain its lead in battery manufacturing.
Beyond the United States, Japan has recently decided to subsidize advanced battery factories while luring TSMC for chips. Germany is investing billions in semiconductor production while maintaining its prowess in the transition to electric vehicles.
As the build out progresses in these two industries, I bet the winning regions are active participants in recruiting the best workforce and deploying sufficient supply chain infrastructure rather than just providing subsidies. Once the physical footprint of these newer industries are established, the supply lines may be permanently changed. The race is on.
Visual Inspection
How Japan Won Lithography (& Why America Lost)
Acoustic Monitoring
Assembly Line
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