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.

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?

	▲	BeetleB 3 days ago \| parent [-]
		> 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.

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re-thc 3 days ago | parent | prev [-]

> 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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BeetleB 3 days ago | parent [-]

> 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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re-thc 2 days ago | parent [-]

> 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.

	▲	BeetleB 2 days ago \| parent [-]
		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.