Comment by m4rtink
12 hours ago
Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?
Not sure how anyone can believe anything that was agreed will hold in such an environment. :P
12 hours ago
Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?
Not sure how anyone can believe anything that was agreed will hold in such an environment. :P
Yes, but its semiconductor industry so its complicated.
Intel got money via grants from the chip act and via other governments. Part of the reason they got that money was to help them build the chip fans in the USA and funding research and workforce in other nations. The fact Intel has claimed its slowing construction basically is a full 180° spin and will set them back in manufacturing ability.
Previous CEO strategy was focused on heavy investment in catching up on manufacturing ability. But once you get stuck on a node it becomes expensive to catch up.
New CEO is clearly trying to shed weight. They have let go of a significant % of workforce, stopped certain projects all together, and seem to be basically selling off parts of their technology and assets to keep cashflow positive.
Given the current CEO and his history and connections, plus the US government involvement it looks like a rocky situation.
New CEO wants to keep the fabs though. It was the board chair pushing him to cut the fabs.
> Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?
There has been some changing of deals on Intel's part as well, with indefinite delays on US fab buildouts the US passed a bill to subsidize. Now the US is taking some equity for its debt.
Far more dramatic Government intervention took place in 2009 when the US bailed out domestic automakers, including equity. Don't recall as much angst about that among the laptop class. Because Obama.
That's precisely how private citizen Trump ran his businesses as well. Make an agreement with contractors to get work started knowing full well those agreements were never going to be honored. Instead, refuse to pay anything forcing contractors to renegotiate at much worse terms vs not getting anything at all. The whole time banking on these contractors not willing to fight in court. That was the art of the deal
The art of the deal isn't a deal. It's extortion.
> Isn't that pretty bad, Darth Vader style changing of previously agreed on deals ?
haha, is this the first you hear of this Trump guy? He rutinely breaks deals, like all the fucking time. (I get that this was not his deal, he breaks those too)
A deal with Trump is worth nothing.
Imagine the stakes of the next election after such an environment
The sparks will fly