Comment by anon291
The government is not 'bailing' Intel out. Intel's CPU business is profitable. Their manufacturing is not. America gave intel grants to build better manufacturing to secure America's national security interests. Congress did not authorize any acquisition of Intel shares.
All the talk about this from a business / investment side leaves out the simple fact that this is not actually authorized by anyone with the power to actually do such a thing.
Essentially, the government, elected by the public, voted to offer grants to intel, and then intel shareholders woke up today to find their equity had been diluted.
Are you sure congress didn’t authorize this ? i.e. actually specified that the money could only be used for grants and could not be used for equity purchases?
> The Department of Commerce is authorized to provide funding in various forms, including grants, cooperative agreements, loans, and loan guarantees, in exercising its Section 9902 authorities
https://www.congress.gov/crs-product/R47523
AFAICT the relevant section of law says it is up to the Secretary of Commerce to determine the funding type to be used for the semiconductor financial assistance
https://www.congress.gov/116/plaws/publ283/PLAW-116publ283.p...
See my other comment : https://news.ycombinator.com/item?id=44995799