BurningFrog 21 hours ago

As I understand it, the government didn't pay anything for these shares.

  • frollogaston 19 hours ago

    "purchasing 433.3 million shares at a price of $20.47 per share" in the article. That was the price a day or so ago

  • BeetleB 21 hours ago

    Why does this keep coming up?

    They're paying the rest of the CHIPS Act money. Overall, they're putting in over $10B into Intel.

    • cududa 20 hours ago

      Where in the bill passed by Congress does it say taking funds entitles the government to 10% of the company 3 years after the fact?

      • BeetleB 18 hours ago

        > company 3 years after the fact?

        Intel hasn't gotten most of the money they were awarded. Even the Biden administration were hesitant in doling it out, because of concerns that Intel could deliver. That's why out of frustration, the previous CEO became vocal in saying "We still haven't gotten any money yet!" and was openly frustrated about it.

        Lip-Bu Tan, in the last quarterly earnings signaled a decent likelihood of not developing 14A (and thus halting much of the semiconductor infrastructure they implied they would need the CHIPS money for). So it's perfectly fair for the government to say "We're not giving you the rest of the money."

        What this deal does is release the rest of the money, but with strings attached.

        There were always strings attached - even with the prior administration. The strings have merely changed, and Intel benefits by actually getting the money now vs a long drawn out process.

    • re-thc 20 hours ago

      > They're paying the rest of the CHIPS Act money. Overall, they're putting in over $10B into Intel.

      So taking a scholarship means you're giving a % of yourself to the school?

      Was this ever mentioned when Intel signed up? Did you know about it?

      • BeetleB 18 hours ago

        > So taking a scholarship means you're giving a % of yourself to the school?

        > Was this ever mentioned when Intel signed up? Did you know about it?

        See my other comment:

        https://news.ycombinator.com/item?id=44993388

        The main point is that even with the prior administration, it wasn't a given Intel would receive all the money. This way, they get the full amount, and fast.