Banned in California — Why You Can't Build Anything in the Golden State
Hacker News
February 25, 2026
AI-Generated Deep Dive Summary
California's stringent permitting regime has made it nearly impossible to establish new industrial facilities in the state, particularly in sectors like technology, manufacturing, and automotive production. The article highlights how processes essential for modern tech products—such as semiconductor fabrication, battery manufacturing, and aluminum anodizing—are heavily regulated or outright banned due to environmental concerns and complex bureaucratic hurdles.
For instance, building a semiconductor fabrication plant (like those used by Intel, TSMC, or Samsung) in California is nearly impossible today. These facilities require ultra-clean rooms, toxic gases like arsine and phosphine, and chemical etching processes that face intense scrutiny from regulators. Similarly, aluminum anodizing, a process used to create durable frames for devices, involves hazardous waste from sulfuric acid baths, making it difficult to obtain permits.
The article also points out how companies like Tesla have been forced to expand their operations outside California. For example, the company's Gigafactory in Reno, Nevada, was chosen specifically because California’s permitting process for battery cell manufacturing is too onerous. Additionally, automotive painting processes, which emit volatile organic compounds (VOCs), are nearly impossible to permit in regions like the Bay Area due to strict air quality regulations.
The broader implication is that California's regulatory environment stifles innovation and industrial growth, pushing companies to seek opportunities in other states. This trend affects not only tech giants but also smaller startups and manufacturers looking to scale. The article underscores
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Originally published on Hacker News on 2/25/2026