Ironic, Western politicians thought opening up to trade with China would lead to it adopting a Western model of government. Instead it's lead to the USA adopting the Chinese one.
U.S. government takes 10% stake in Intel
91–100 of 765 posts
Re: U.S. government takes 10% stake in Intel
#92Seizing the means of production!
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Re: U.S. government takes 10% stake in Intel
#93Earlier quoted context omitted.
> It's the only chip manufacturer "left" in the US Global Foundries, Micron, and Texas Instruments all come to mind
Yeah terrible position to be when your own government is investing in your competitors' company using your own tax dollars. As a software engineer, this isn't an entirely new concept.
I think all three of those other companies are also getting CHIPS-act subsidies?
Re: U.S. government takes 10% stake in Intel
#94> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company > The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?
If someone from the Mafia comes to you and asks for a 10% share of your restaurant you better say yes.
Socializing a corporate venture with peace time debt seems counter to the ideals of free market capitalism. Even the takeover of "government motors" (GM) during the Great Recession left many concerned about government overreach. Boeing killed people with a bad product, and they only faced a fine without direct equity takeover.
Re: U.S. government takes 10% stake in Intel
#95> 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?
They will vote with the board
Re: U.S. government takes 10% stake in Intel
#96Earlier quoted context omitted.
I think a better rephrasing is "government is giving $8.9B from the CHIPS act in exchange for a 10% stake in the company"
Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I think that's a fair assessment given that these grants were already supposed to be paid out to Intel, without any kind of equity stake promised. Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Samsung, TSMC, Micron and others were granted similar funds without any kind of wit…
Getting stock in exchange of grants makes more sense than "pure" grants.
This stock can later be sold, to benefit the taxpayer.
Re: U.S. government takes 10% stake in Intel
#97[dead]
Re: U.S. government takes 10% stake in Intel
#98Earlier quoted context omitted.
There is only 1 winner and 1 loser: Intel. It's the only chip manufacturer "left" in the US. The argument is national security: the US expects China to invade Taiwan and this will kill TSMC in the process. Whether this will happen or not can be debated, but this is what the government expects.
Texas Instruments and Microchip: Am I a joke to you?
I'm surprised to see on https://en.wikipedia.org/wiki/Microchip_Technology that Microchip does in fact have fabs. I thought it was fabless! Its fabs are in the US, but the assembly and test facilities are all across the Pacific.
Re: U.S. government takes 10% stake in Intel
#99> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company > The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?
If someone from the Mafia comes to you and asks for a 10% share of your restaurant you better say yes.
Yes, but in this case the restaurant was already empty of customers on most evenings.
Re: U.S. government takes 10% stake in Intel
#100Here comes the nationalization phase of fascism. Well done, freedom lovers. You voted in exactly what you fear most.
They never feared it, they always wanted it, just with someone like Trump calling the shots. Every accusation is a confession, etc.