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U.S. government takes 10% stake in Intel

cnbc.com

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Re: U.S. government takes 10% stake in Intel

#13

Post by lazide »

alephnerd wrote: post #4

Good. 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.…

I don’t know, it sounds like the US gov’t just stole $11 bln from Intel shareholders - while intel is failing - while promising nothing?

Re: U.S. government takes 10% stake in Intel

#15

Post by jimbob45 »

alephnerd wrote: post #4

Good. 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.…

Would you still be saying this if Intel wasn’t floundering as badly as it is today? There’s no equivalent push to take any level of control in AMD.

Also this appears to be in exchange for CHIPS funds (per the article). HN has universally supported equity in return for bailouts over the years.

Re: U.S. government takes 10% stake in Intel

#16

Post by alephnerd »

lazide wrote: post #13
alephnerd wrote: post #4

Good. 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.…

I don’t know, it sounds like the US gov’t just stole $11 bln from Intel shareholders - while intel is failing - while promising nothing?

It's a similar amount to the stake from the CHIPS act.

Re: U.S. government takes 10% stake in Intel

#18

Post by cuttothechase »

Genuine question-

How does Govt picking winners and losers going to help?

Intel is no Too big to fail Bank. Why save Intel of all chip manufacturers? Wouldnt it be like 25 years too late, with Intel and its heydays !?

Would Govt now ensure parity by investing in "marquee" entities across different industrial domains?

Re: U.S. government takes 10% stake in Intel

#19

Post by alephnerd »

jimbob45 wrote: post #15
alephnerd wrote: post #4

Good. 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.…

Would you still be saying this if Intel wasn’t floundering as badly as it is today? There’s no equivalent push to take any level of control in AMD. Also this appears to be in exchange for CHIPS funds (per the article). HN has universally supported equity in return for bailouts over the years.

> Would you still be saying this if Intel wasn’t floundering as badly as it is today

Yes.

I've been a proponent of a Temasek style model for the US since my undergrad days. This would make it easier to commercialize grant funded IP instead of the mess that SBIR/STTR is today.

It was difficult for the Biden admin to do something similar, but at least the traditional norms have been shattered.

As I said above, it's very much a "broken clock is right twice" type of situation.

> Also this appears to be in exchange for CHIPS funds (per the article). HN has universally supported equity in return for bailouts over the years.

Exactly!

And like I have said a couple of times on HN - I view the CHIPS and IRA as the carrot, and tariffs plus ownership stakes as the stick.

There is nothing wrong with with a public-private industrial policy. We ourselves used one until the 1980s with Reaganomics, as did our allies like Japan, Taiwan, Singapore, Israel, Ireland, and others.

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