Wall Street Journal: Even With Incentives, Asian Companies Find It’s Hard to Build in the U.S.
Panasonic, Samsung, and TSMC are among the companies in line to receive billions in local, state and federal subsidies to build out its semiconductor and electric vehicle manufacturing presence in the United States.
But the companies say it’s not enough, the Wall Street Journal reports:
Companies’ complaints may be a negotiation tactic to secure more funding, some analysts and government officials say.
“It’s true that the cost of materials has gone up. It’s also true that building costs and environmental standards are higher in the U.S. than some other popular manufacturing destinations,” said Greg LeRoy, executive director of Good Jobs First, a nonprofit research group that is often critical of subsidies.
“But are companies not getting enough money to offset all that? Sounds like crocodile tears to me,” LeRoy said.
In many cases, states have competed with each other to lure new projects, resulting in substantial incentives for big-name foreign and domestic manufacturers. Panasonic’s Kansas plant is in line to receive around $1.27 billion in state and local subsidies on top of billions of dollars in federal incentives, according to data compiled by Good Jobs First.
Read the full story at MSN (story first appeared in the Wall Street Journal).