Motorola Puts `Silicon Dominion' Plant on Hold: Economy Dries Chip Demand

By Cleary, Mike | The Washington Times (Washington, DC), September 17, 1998 | Go to article overview

Motorola Puts `Silicon Dominion' Plant on Hold: Economy Dries Chip Demand


Cleary, Mike, The Washington Times (Washington, DC)


Motorola Inc. yesterday stopped construction of its $3 billion computer chip-making plant near Richmond, the victim of a market collapse that started in the Asian economic crisis.

Company officials and analysts said that the worldwide demand for chips is dropping, driving down prices, because of the economic crises in Asia and Russia.

Officials of the Schaumburg, Ill.-based electronics giant said they still plan to eventually build the 1.5-million-square-foot plant, which is expected to advance chip-making technology and cut costs.

But construction at the West Creek Business Park, about a dozen miles west of Richmond, was postponed indefinitely because global economic conditions made it too costly to go ahead now, the company said.

"As soon as the market resumes, then we have every intention of getting back to the construction and selling chips," said Motorola spokesman Scott Stevens.

"While the news of Motorola's decision to suspend construction of its Goochland plant is disappointing, we are certainly encouraged by the company's long-term commitment to build the facility," said Gov. James S. Gilmore III in a press statement. "We remain committed to working with Motorola to advance Virginia's status as a technology leader."

The plant was a key prize in former Gov. George Allen's campaign to turn Virginia's "Old Dominion" based on coal and tobacco, into a "Silicon Dominion" based on high-tech industries. However, development experts have mixed opinions on whether Virginia offered excessively generous incentives to encourage chip makers to build or relocate factories in the state.

"I thought it was too high a price to pay at the time," said Charles McMillion, chief economist for MBG Information Systems in the District. "On the other hand, Virginia needed some trophy investments to leverage other investments and it's done a tremendous job in building the PR buzz in attracting other development."

Businesses and residents in and around Goochland County have looked forward to the 5,000 jobs the plant would bring, the spending it would generate and hundreds of millions of dollars of expected tax revenues. Over 20 years, the plant would generate about $564 million in tax revenues, Virginia economic development officials estimated.

The decision follows recent announcements by three Japanese chip makers - Matsushita Electric Industrial Co. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Motorola Puts `Silicon Dominion' Plant on Hold: Economy Dries Chip Demand
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.