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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

#141

Post by BeetleB »

fancyfredbot wrote: post #101

Did Lip Bu Tan initially try to say no to this? You'd kind of expect him to say no. Is that why Trump tried to oust him? Is Trump trying to oust him the reason Intel are now accepting this?

> You'd kind of expect him to say no.

There was no guarantee Intel would get the rest of the CHIPS money they were granted - even the Biden administration kept holding it back (after officially awarding it to them) - as there were doubts Intel could deliver.

I also wonder if some deal was made around 14A. Tan said he would not develop it without commitments from customers, because sales from Intel CPUs wouldn't justify the cost. This may be a way to ease that pressure and give Intel another chance even without serious customer commitment.

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

#142

Post by lawlessone »

impossiblefork wrote: post #135
softwaredoug wrote: post #49

I’m pretty sure that’s socialism

Socialism would be worker ownership. This is simply state ownership of what's seen as a strategic business. It's an abandonment of market dogmatism, but not a step towards any of the many ideologies or positions where markets have a smaller role.

I think the phrase i heard before is State Capitalism. But i could be wrong

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

#143

Post by banku_brougham »

[Ex Post Facto Clause, US Constitution](https://www.congress.gov/crs-product/IF11293). Oops, I thought it was so obviously going to be done away with in the courts, but in 1912 the Supreme Court ruled that it applies only to criminal punishments.

They always getcha with the fine print.

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

#145

Post by coliveira »

belter wrote: post #108

I give you 3 months before the US government takes 10% of Google, Microsoft, Amazon/AWS, Nvidia, AMD and Apple.

For Nvidia this is already happening. They're taking a chunk of the profits of Nvidia operations in China. The Chinese have been prescient when stopped any Intel and Nvidia chips in government and strategic areas of China.

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

#146

Post by lugu »

robocat wrote: post #132
voxadam wrote: post #12

Intel press release: https://newsroom.intel.com/corporate/intel-and-trump-adminis...

So no shareholder vote required? It is equivalent to a 10% dilution (shares issued for no extra cash).

How can this be any good for Intel? Why is the stock value bumping 6%?

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

#148

Post by [deleted] »

cvoss wrote: post #70
MyOutfitIsVague wrote: post #44

> 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?

The answer is in the paragraph in between the two you quoted from. The money for the purchase has already been appropriated by Congress and awarded to Intel. The awards didn't previously have this giant string attached where Intel gives stock in return. But now they do. And it makes sense that Intel is spinning it as a generous investment from the gov't, but the gov't is spinning it as a free gift from Intel. Neither…

[deleted]

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

#149

Post by robotnikman »

sobiolite wrote: post #91

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.

It somewhat makes sense in terms of industries which are deemed strategically important. Intel needs to start thinking long term instead of short term profits.

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

#150

Post by bigyabai »

glimshe wrote: post #126
sobiolite wrote: post #91

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.

The promiscuous relation between government and tech is as old as Silicon Valley. I'm fact, it created Silicon Valley. It started when people in China were still building backyard furnaces.

Who ordered the Chinese people to build furnaces in their backyard?
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