Comment by BurningFrog
Comment by BurningFrog 21 hours ago
As I understand it, the government didn't pay anything for these shares.
Comment by BurningFrog 21 hours ago
As I understand it, the government didn't pay anything for these shares.
> 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.
> 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.
They had that money in the bank (and much more) when they lobbied to get the CHIPS act passed. They want the money.
So yes, this is all about getting the rest of the money.
The administration is deciding they should not get it for free. Which totally makes sense given that Intel is openly signaling a willingness to halt semiconductor research.
"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