Abinader sees DR entering the microchip world

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PJT

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The semiconductor microchip industry in the RD would bring in revenue that in time could be second to tourism. There is a great need of semiconductor manufacturing in this hemisphere. The geo location of the RD is perfect. The small size, high value, and secure transportation of semiconductors by airfreight would advantage this country by absorbing itself into semiconductor production. The great costs of setting up manufacturing facilities and staffing them would be offset by the very high return revenue from semiconductors/chips. The additional factor to weigh in is value-added manufacturing at free trade zones, chips manufactured in the RD added to imported product components to be later exported after assembly would bring more revenue to the RD. As said before, it is a win win situation. The air industry would make millions from the industry, millions that would help reduce passenger fares.

Regards,

PJT
 

Manuel01

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Apr 1, 2009
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The semiconductor microchip industry in the RD would bring in revenue that in time could be second to tourism. There is a great need of semiconductor manufacturing in this hemisphere. The geo location of the RD is perfect. The small size, high value, and secure transportation of semiconductors by airfreight would advantage this country by absorbing itself into semiconductor production. The great costs of setting up manufacturing facilities and staffing them would be offset by the very high return revenue from semiconductors/chips. The additional factor to weigh in is value-added manufacturing at free trade zones, chips manufactured in the RD added to imported product components to be later exported after assembly would bring more revenue to the RD. As said before, it is a win win situation. The air industry would make millions from the industry, millions that would help reduce passenger fares.

Regards,

PJT
There is ZERO Money to make on regular Microchips. ABSOLUTELY ZERO ! Regular chips are sold by pound today. The Big Money they always make on last generation chips and if you think that they outsource this Business to the DR you are dreaming.
 

chico bill

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Clean rooms cost about $1,000 to $1,500 per square foot to build.
Electricity must me stable and voltage strictly controlled as well as temperature and air quality.
Building high end chips or processors requires tedious precise work.
Could it be done in DR. Sure if it can be done in Mexico it can be done here.
Personally it seems like a pipe dream.
But the US is investing billions to set up American factories and I can not see any of the money, earmarked for US production to be diverted to DR.
That would mean private investors would have to be interested to build a facility, train workers and import 100% of materials.
I doubt that's happening
 

El Hijo de Manolo

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Believe it or not, the same was said about developing tourism in the DR back in the 1960’s and even 1970’s. The thought the DR was going to become a tourism powerhouse in the Caribbean would had been seen as wishful thinking back then. Things like constant blackouts, constant water shortages, the garbage thrown in the streets among other things as recent as the 1970’s were already a problem (many have become worse) were some of the reasons people said tourism will never amount to anything in the DR. These were things that other popular tourists spots in the Caribbean such as nearby Puerto Rico wasn’t much or at all affected by them. Then there were people like Frank Rainieri who was “wasting” his life on attracting tourists to a mosquito infested and devoid of all development Punta Cana. Many people actually felt bad for him thinking he was after something that would never happen. Even worse was that basically no one was educated on hospitality, which is essential to having a successful touriem industry since a major part of that are hotels, resorts and restaurants.

Tourism in the DR was a waste of time. It’s 2024 and oh wait, what happened?
IMG_0381.jpeg
 

NALs

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Clean rooms cost about $1,000 to $1,500 per square foot to build.
That’s in developed countries.

Electricity must me stable and voltage strictly controlled as well as temperature and air quality.
The Metro, Monorail, cable cars also need a stable and strictly controlled electricity.

But the US is investing billions to set up American factories and I can not see any of the money, earmarked for US production to be diverted to DR.
That would mean private investors would have to be interested to build a facility, train workers and import 100% of materials.
Except for the building a facility and not much additional training is required for most workers as they already exist, free trade zones function like that. They must important most or all the materials to be assembled in the DR and they must export most or all of what is assembled in the free trade zines, otherwise whatever is sold locally have additional taxes to pay. In fact, the chip industry that Abinader is supporting is based on a type of free trade zones.

Like with many other sectors the Dominican government want to be developed, it can offer companies that set up in the DR for a minimum of X years to cover there losses on their Dominican productions for the first few years. Basically, it would be impossible for companies to not be profitable using the DR.
 
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FF1

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Like with many other sectors the Dominican government want to be developed, it can offer companies that set up in the DR for a minimum of X years to cover there losses on their Dominican productions for the first few years. Basically, it would be impossible for companies to not be profitable using the DR.
Most developing countries offer incentives as no tax for X years, subsidies per employee, healthcare for the employees paid by the gov, tax-free export... it's not unique to DR.
 

NALs

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Most developing countries offer incentives as no tax for X years, subsidies per employee, healthcare for the employees paid by the gov, tax-free export... it's not unique to DR.
Very few countries are in fact shortening the gap with developing countries. If anything, the gap is getting bigger as over the long term developed countries grow more. In Latin America there are literally 2 or 3 countries shortening the gap with the DR being one of them. The only one in the Caribbean.
 

Manuel01

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That’s in developed countries.


The Metro, Monorail, cable cars also need a stable and strictly controlled electricity.


Except for the building a facility and not much additional training is required for most workers as they already exist, free trade zones function like that. They must important most or all the materials to be assembled in the DR and they must export most or all of what is assembled in the free trade zines, otherwise whatever is sold locally have additional taxes to pay. In fact, the chip industry that Abinader is supporting is based on a type of free trade zones.

Like with many other sectors the Dominican government want to be developed, it can offer companies that set up in the DR for a minimum of X years to cover there losses on their Dominican productions for the first few years. Basically, it would be impossible for companies to not be profitable using the DR.
You are totally right but economics aside; for such a sensitive form of production you do need a highly motivated, disciplined and responsible workforce and more than anything you need employes that totally identify with their companys and their goal. THIS YOU WILL NOT FIND IN THE DR !!! If there is a fire in any company and the employee has to choose between saving is jacket that he left on his work bench or looking for a extinguisher to put out the fire, in 100 out of 100 cases they will save their jacket.
 
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FF1

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...you do need a highly motivated, disciplined and responsible workforce and more than anything you need employees that totally identify with their companies and their goal.
Exactly. There is a reason 90% of microchips in the World are produced by Asians.
 
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Jan 9, 2004
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Believe it or not, the same was said about developing tourism in the DR back in the 1960’s and even 1970’s. The thought the DR was going to become a tourism powerhouse in the Caribbean would had been seen as wishful thinking back then. Things like constant blackouts, constant water shortages, the garbage thrown in the streets among other things as recent as the 1970’s were already a problem (many have become worse) were some of the reasons people said tourism will never amount to anything in the DR……..

Tourism in the DR was a waste of time. It’s 2024 and oh wait, what happened?

What happened?

Their names are Ted Kheel, Frank Rainieri and Rolando Gonzalez-Bunster….in that exact order, with Buster ultimately playing the most important role.

Note that not one was a politician and two are not even citizens of the DR. It took vision and foreign capital to succeed…..not government lambones….although they had their hands out…..all along the way.

Respectfully,
Playacaribe2
 

Lucifer

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What happened?

Their names are Ted Kheel, Frank Rainieri and Rolando Gonzalez-Bunster….in that exact order, with Buster ultimately playing the most important role.

Note that not one was a politician and two are not even citizens of the DR. It took vision and foreign capital to succeed…..not government lambones….although they had their hands out…..all along the way.

Respectfully,
Playacaribe2
I didn't know González-Bunster.
 

MoJoInDR

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Aug 23, 2023
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Here's an interesting side note...

I personally know someone who owned and managed a clean-room facility in Haiti during the late '70s and early '80s... Doing quite a lot of business.

So... It could be done in Haiti forty years ago, but can't be done in the DR forty years later?
 
Jan 9, 2004
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I didn't know González-Bunster.

He took one hotel off of the shoddy government power system and onto his own that he was building…..and the rest is history.

The hotel AI concept was gaining strength in the DR, but the power grid was unreliable. All hotels that wanted to stay in business invested in massive generators as a backup……which of course ended up being primary more often than they would like. The cost to run/maintain them was off the charts……enter Rolando Gonzalez-Buster.

He was first approached by the then Fiesta hotel (now Palladium I believe) to supply reliable power. In short he did so….but at a cost higher than the state run power company, but with far more efficiency and reliability. Other hotel groups so the benefit and connected to his power company. To be sure this did not sit well with many politicians, but fortunately someone had enough vision to let him continue. The rest of course is history.

He is truly the unsung hero of Punta Cana…..and when he committed his capital and know how to supplying wind power to Cabo Rojo (the main supplier is Edesur), that told me that Cabo Rojo was the real deal…..and he may eventually supply all the power there one day.

FYI, he also currently supplies power to Bayahibe.

Respectfully,
Playacaribe2
 

FF1

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Dec 17, 2022
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It's not about a clean-room, you can make a clean-room anywhere in the world, it's about the workforce.
 

FF1

Well-known member
Dec 17, 2022
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DR
Very few countries are in fact shortening the gap with developing countries. If anything, the gap is getting bigger as over the long term developed countries grow more. In Latin America there are literally 2 or 3 countries shortening the gap with the DR being one of them. The only one in the Caribbean.
I would bet if Abi offered the leading chip manufacturing corporations to move their production from Taiwan to DR and the DR gov will pay the workers salaries for the next 20 years with a requirement that 90% of the workforce have to be Dominicans the corporations would refuse the offer and none would come.
 
Jan 9, 2004
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It's not about a clean-room, you can make a clean-room anywhere in the world, it's about the workforce.

…….And apparently Haiti proved that point.

However, clean rooms are used in many manufacturing processes like pharmaceuticals, etc.

I do not think there was ever any chip production in Haiti…..except as was mentioned in a prior post above…….Plantains.

Respectfully,
Playacaribe2
 

NALs

Economist by Profession
Jan 20, 2003
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What happened?

Their names are Ted Kheel, Frank Rainieri and Rolando Gonzalez-Bunster….in that exact order, with Buster ultimately playing the most important role.

Note that not one was a politician and two are not even citizens of the DR. It took vision and foreign capital to succeed…..not government lambones….although they had their hands out…..all along the way.

Respectfully,
Playacaribe2
Without the government it would had never taken off. Case in point, they couldn’t had done that in Cuba after 1959 and the current Haiti.

Under the Cuban model the entire Punta Cana property would had been expropriated. In Haiti, well we can see what’s going on over there. One with a strong government that isn’t very pro-business and the other with hardly a government to speak of.
 

NALs

Economist by Profession
Jan 20, 2003
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Here's an interesting side note...

I personally know someone who owned and managed a clean-room facility in Haiti during the late '70s and early '80s... Doing quite a lot of business.

So... It could be done in Haiti forty years ago, but can't be done in the DR forty years later?
Shhh… Don’t ruin the DR1 moment. :sneaky:
 

NALs

Economist by Profession
Jan 20, 2003
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Exactly. There is a reason 90% of microchips in the World are produced by Asians.
What percentage of microchips are made in Costa Rica?

The DR is a small country. It doesn’t need to take not even half of the pie to be doing good in that respect (or in any respect for that matter.)
 
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