Semico Research Corp.'s Joanne Itow, Managing Director of Manufacturing Research wonders if manufacturing in the U.S. is still viable. What do you think? Please comment or add your own questions.

The project is located in Roseville, Calif., even though California is reputed to be one of the most expensive states to maintain manufacturing facilities.

NEC officials cited several reasons.

First, the company’s VP of manufacturing operations credits the fab success and efficiency to his employees. He has been at the Roseville fab for 23 years. Our tour guide was a 14-year veteran of the fab. Clearly there is value in experience and stability in your workforce. Second, having a U.S. fab is more convenient for European and U.S. customers to visit. I’m sure there was an automotive customer that required multiple manufacturing sites to ensure a more reliable source. And third, Roseville was attractive because that the infrastructure already existed.

This upgrade wasn’t without its challenges. NEC installed 8-inch equipment alongside the 6-inch operations while still maintaining 6-inch production. That requires a commitment from all the people involved to make it work.

But this effort also begs the question, ‘Is manufacturing in the U.S. still viable?’ It certainly appears to be. Maybe our workforce talent just needs to be utilized differently. Or maybe this industry needs to reconsider the value of property and equipment. Either way, it sure would be nice to see fewer empty fab shells in the U.S.