Comment by tyg13
19 hours 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.
> Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant.
So far...
> 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.
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.
Getting stock in exchange of grants makes more sense than "pure" grants.
This stock can later be sold, to benefit the taxpayer.
that's not a grant. That's just buying stocks.
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).
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I don't think anything is ever free, and I think that Donald Trump the businessman knows that better than I do.