5 ms·

I think a better rephrasing is "government is giving $8.9B from the CHIPS act in exchange for a 10% stake in the company"

tyg13 1y ago
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 withholding or demands for equity from the federal government.
- rvba 1y ago
  Getting stock in exchange of grants makes more sense than "pure" grants. This stock can later be sold, to benefit the taxpayer.
  - behringer 1y ago
    that's not a grant. That's just buying stocks.
    - BeetleB 1y ago
      It's effectively a grant. The US government isn't buying existing shares. Intel is issuing new shares and selling them to the US government - so actual money is being transferred to Intel (and existing shares are being diluted as a result).
      - loeg 1y ago
        That's just buying stocks (at-the-market offering).
        BeetleB 1y ago
        Nope. When I buy stocks at market price, the company gets none of my money. When the company issues new stocks and sells them, the company gets the money.
        loeg 1y ago
        I think you're maybe unfamiliar with what an ATM offering is; try googling it.
        BeetleB 1y ago
        Fair point. The key issue in the thread, which I think we both agree on, is that yes, the government is giving money to Intel.
        deleted 1y ago
        [deleted]
- MrDarcy 1y ago
  Trump feels Biden gave intel billions for nothing. Trump feels he’s balanced the scales by getting 10% of Intel. Trump gets to spin it as getting 10% of Intel for nothing. Win win for Trump.
- simoncion 1y ago
  > Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Sure, but Intel's new CEO is making a lot of noise that indicates that Intel is maybe not going to be able/willing to build some-to-many of the things the CHIPS money paid for. Giving FedGov a 10% stake in the company [0] is better than taking the money back for nonperformance, wouldn't you say? [0] Which -as I understand it- was the sort of thing that was done for those finance companies that were Too Big To Fail when all that fraud^W novel financial engineering eventually caught up to them.
- dotancohen 1y ago
  > Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I don't think anything is ever free, and I think that Donald Trump the businessman knows that better than I do.
- 01100011 1y ago
  > Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. So far...

tyg13 1y ago

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 withholding or demands for equity from the federal government.

rvba 1y ago
Getting stock in exchange of grants makes more sense than "pure" grants. This stock can later be sold, to benefit the taxpayer.
- behringer 1y ago
  that's not a grant. That's just buying stocks.
  - BeetleB 1y ago
    It's effectively a grant. The US government isn't buying existing shares. Intel is issuing new shares and selling them to the US government - so actual money is being transferred to Intel (and existing shares are being diluted as a result).
    - loeg 1y ago
      That's just buying stocks (at-the-market offering).
      - BeetleB 1y ago
        Nope. When I buy stocks at market price, the company gets none of my money. When the company issues new stocks and sells them, the company gets the money.
        loeg 1y ago
        I think you're maybe unfamiliar with what an ATM offering is; try googling it.
        BeetleB 1y ago
        Fair point. The key issue in the thread, which I think we both agree on, is that yes, the government is giving money to Intel.
        deleted 1y ago
        [deleted]
MrDarcy 1y ago
Trump feels Biden gave intel billions for nothing. Trump feels he’s balanced the scales by getting 10% of Intel. Trump gets to spin it as getting 10% of Intel for nothing. Win win for Trump.
simoncion 1y ago
> Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Sure, but Intel's new CEO is making a lot of noise that indicates that Intel is maybe not going to be able/willing to build some-to-many of the things the CHIPS money paid for. Giving FedGov a 10% stake in the company [0] is better than taking the money back for nonperformance, wouldn't you say? [0] Which -as I understand it- was the sort of thing that was done for those finance companies that were Too Big To Fail when all that fraud^W novel financial engineering eventually caught up to them.
dotancohen 1y ago
> Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I don't think anything is ever free, and I think that Donald Trump the businessman knows that better than I do.
01100011 1y ago
> Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. So far...