zlacker

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?

>>fluori+(OP)
As I understand it, the government didn't pay anything for these shares.

>>Burnin+F
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.

>>Beetle+81
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?

>>Beetle+81
> 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?

>>Burnin+F
"purchasing 433.3 million shares at a price of $20.47 per share" in the article. That was the price a day or so ago

>>cududa+T1
> 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.

>>re-thc+w5
> 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:

>>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.

>>Beetle+Jd
> 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.

>>re-thc+EX
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.

>>frollo+x7
From my understanding, these funds were already approved by the Biden Administration via the Chips act and another. Our president managed to obtain 10% of the shares for this money that was already going to intel in exchange for removing a clawback provision stipulated by the Chip’s act.

Norway has an incredible sovereign wealth fund that funds many benefits for its citizens. Perhaps if the Intel dividends are used for social security benefits, there will be bipartisan cheering.