The sentiment was not bad. TSMC is a shining example of how fab subsidies can be a good idea, and Intel’s fabs going under is bad and basically irreplaceable. Like… I am still happy with my tax dollars taking the risk, and Intel was clearly trying to right the ship when CHIPS was conceived.
But theres clearly rot in Intel. Thats a big difference I guess, as TSMC was built from the ground up (in a time where that was possible) while Intel is already weighed down with its sins.
I absolutely do, the company buys it’s own stock.
So if the company has a 1000 dollars, and buy for a 1000 dollars shares, it changes nothing for the remaining stockholders.
And the one who sold his stock, just got market value, nothing more nothing less.
The company now has a 1000 dollars less, but there is also for a 1000 dollars less stock. So the inner value per remaining stock remains the same.
Originally when the stock was sold, the money went to the company, when the company buys it back, it’s much like paying back a debt. But apart from that, Intel hasn’t done any buybacks for more than 3 years.
Intel is just a portion of the CHIPS Act funding and they’re the largest fab in the US. Why wouldn’t they be included in it when the whole point is to generate more domestic manufacturing rather than “trying to pick winners and losers?” Even TSMC got some of the money, and they’re already dominating the market, which arguably makes even less sense to award them taxpayer dollars.
The sentiment was not bad. TSMC is a shining example of how fab subsidies can be a good idea, and Intel’s fabs going under is bad and basically irreplaceable. Like… I am still happy with my tax dollars taking the risk, and Intel was clearly trying to right the ship when CHIPS was conceived.
But theres clearly rot in Intel. Thats a big difference I guess, as TSMC was built from the ground up (in a time where that was possible) while Intel is already weighed down with its sins.
If we give them billions of dollars, then why are we not taking equity position?
You do understand that shareholders were transferred 100billion dollars over last 20 years?
Why is us taxpayers bailing out their position?
Why Intel needs cash, why doesn’t intel issue shares and gut the shareholder?
Eitherway, I am happy that you are satisfied with this transfer. I am not.
Where do you get the 100 billion USD amount from?
AFAIK Intel has received less than $10 billion.
sharebuy back is cash transfer to shareholders.
CHIPS act allocated about 34b to be transferred to the corporation.
That is simply not true, and Intel has only gotten less than $10 billion from CHIPS.
AFAIK they’ve actually only received 1 billion of that.
Do you understand what a share buyback is?
Original CHIPS allocation was 30-50b, looks like that was a total, intel was allocated 8.5b
https://www.theverge.com/24166234/chips-act-funding-semiconductor-companies
That’s just this package Intel among other companies receive other substantial state aid thought, just to be clear within US but also outside.
For example, Germany is giving intel money too lol
I absolutely do, the company buys it’s own stock.
So if the company has a 1000 dollars, and buy for a 1000 dollars shares, it changes nothing for the remaining stockholders.
And the one who sold his stock, just got market value, nothing more nothing less.
The company now has a 1000 dollars less, but there is also for a 1000 dollars less stock. So the inner value per remaining stock remains the same.
Originally when the stock was sold, the money went to the company, when the company buys it back, it’s much like paying back a debt. But apart from that, Intel hasn’t done any buybacks for more than 3 years.
https://ycharts.com/companies/INTC/stock_buyback
Maybe you misunderstood how it works?
so intel spends 15 years buying back 100b in stock and ran the company into the ground…
now taxpayer is transferring money to them…
where is the disconnect here?
Oh please…
Intel is just a portion of the CHIPS Act funding and they’re the largest fab in the US. Why wouldn’t they be included in it when the whole point is to generate more domestic manufacturing rather than “trying to pick winners and losers?” Even TSMC got some of the money, and they’re already dominating the market, which arguably makes even less sense to award them taxpayer dollars.