U.S. government takes 10% stake in Intel
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Re: U.S. government takes 10% stake in Intel
#2I wonder if this means the US is going to come for Global Foundaires, TI and Micron to extract an equity stake too. Interesting times.
Re: U.S. government takes 10% stake in Intel
#3My first thought, how many Trump people just front ran this?
Re: U.S. government takes 10% stake in Intel
#4Good. It's very much a "Heartbreaking: The Worst Person You Know Just Made a Great Point" situation.
If Taiwan's NDF has ownership share in TSMC and UMC, China's CICIIF in SMIC, Japan's Master Trust in a majority of enterprises, and Abu Dhabi's Mubadala in GlobalFoundries, then we should as well.
The recent (50ish years) aversion to Industrial Policy in America has been pigheaded and ideological to a certain extent. If we wish to build capacity domestically, especially in high capex and low margins industry, some amount of government support is needed.
Funds that are overwhelmingly sourced via private capital cannot take the same risks to build an ecosystem that a Soverign Development Fund can. This is what the Master Trust (Japan), NDF (Taiwan), and Temasek (Singapore) did to build their own domestic industries in semiconductors and REE processing - industries with high capex, high IP barriers, and low margins.
This now sets the precedent to develop at sovereign development fund.
If we did this with GM and Solyndra a decade+ ago we would have been in a better position to protect our automotive and renewable industry, but ofc the GOP of that era along with a portion of the DNC was not ready to take such a risk.
The CHIPS and IRA acts were steps in the right direction, but couldn't really take full advantage of the stick.
Edit: Surprised that a forum that largely supports single payer healthcare opposes sovereign development funds, even though they themselves could help enforce pricing in a less complex manner than that which the CMS does today.
At some point this is just reflexive hatred.
Re: U.S. government takes 10% stake in Intel
#5> "The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars,” President Trump wrote"
This wasn't any sort of investment, it was blackmail. No corporation in the country would voluntarily give up 10% of the company to the federal government - for free - unless overtly threatened. The Trump administration is hoping that by exerting control over Intel, it can begin dictating conditions to Intel's customers, thus the tech community at large.
I also assume that one of Trump's cronies will take a spot on the board or some other oversight role, and in the near future, Intel will enrich Trump in one way or another, such as stock, investments, insider information, etc.
Nothing about this is good for the U.S. or Intel. It's not a bailout or a sign of support, but a way for Trump to have power over the tech sector.
Re: U.S. government takes 10% stake in Intel
#6I wonder if this means the US is going to come for Global Foundaires, TI and Micron to extract an equity stake too. Interesting times.
TI and Micron probably. Not sure about GloFlo - UAE's Mubadala has a very strong controlling stake in it.
Re: U.S. government takes 10% stake in Intel
#7> Intel said that the U.S. government won’t have a board seat or other governance rights.
What rights does this refer to? Normal shareholder voting rights or something else?
Re: U.S. government takes 10% stake in Intel
#8[flagged]
Re: U.S. government takes 10% stake in Intel
#9My first thought, how many Trump people just front ran this?
You mean did insider trading?
Re: U.S. government takes 10% stake in Intel
#10Seizing the means of production!