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U.S. government takes 10% stake in Intel

(www.cnbc.com)
607 points givemeethekeys | 7 comments | 22 Aug 25 21:01 UTC | HN request time: 0s | source | bottom
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sgnelson ◴[23 Aug 25 01:52 UTC] No.44992267[source]▶
Everyone is talking about "bailouts" and "owning a company that the government funds."

This isn't about that at all. This is about the breakdown of the rule of law, a unitary executive bypassing all other branches of government and demanding a private enterprise give itself over to the government.

If you don't think there was an "or else" as part of this deal, you're largely mistaken. If you don't think that there will be other questionalbe demands placed on Intel in the future from this government, you are largely mistaken.

But y'all go ahead and can keep arguing over whether we should "get something back" from this deal. Because that's really going to maker ameraica graet agian.

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fluoridation ◴[23 Aug 25 02:34 UTC] No.44992539[source]▶
Why would the government need to "demand" to buy a piece of a publicly-traded company? Is 10% of Intel more than what is being traded in the public market?
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BurningFrog ◴[23 Aug 25 02:40 UTC] No.44992580[source]▶
As I understand it, the government didn't pay anything for these shares.
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1. BeetleB ◴[23 Aug 25 02:44 UTC] No.44992609[source]▶
Why does this keep coming up?

They're paying the rest of the CHIPS Act money. Overall, they're putting in over $10B into Intel.

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2. cududa ◴[23 Aug 25 02:52 UTC] No.44992656[source]▶
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?
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3. re-thc ◴[23 Aug 25 03:30 UTC] No.44992881[source]▶
> They're paying the rest of the CHIPS Act money. Overall, they're putting in over $10B into Intel.

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?

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4. BeetleB ◴[23 Aug 25 05:16 UTC] No.44993388[source]▶
> 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.

5. BeetleB ◴[23 Aug 25 05:16 UTC] No.44993390[source]▶
> 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.

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6. re-thc ◴[23 Aug 25 14:25 UTC] No.44996237{3}[source]▶
> This way, they get the full amount, and fast.

Intel has >20B in the bank. If they really want to they can wait and sell shares for a better deal like with SoftBank.

i.e. not the main point.

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7. BeetleB ◴[23 Aug 25 18:12 UTC] No.44997912{4}[source]▶
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.