Comment by cududa
11 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?
11 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?
> 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.