I understand chip making is extremely critical from a strategy standpoint, but I don't see how direct ownership by the US government would be something to be celebrated. That said, Intel sucks.
Besides us not going to get money back, and the government being involved in private business being a generally bad idea...
Intel is in the shitter rn. They can hold on, but the new CEO just undid shit the last one was trying to do (build new factories, etc), which is a huge investment that's now just gone. That's dumb issue 1. Would the factories help? Maybe, maybe not, but now we'll never know and that's a lot of cash down the drain they could have recovered.
Dumb issue 2, nobody trusts Intel right now. Not only consumers, but now governments will question if the government is going to take more active steps into making backdoors into intel processors.
Dumb issue 3, intel has been making mediocre chips as of late, and not updating the process enough to have real efficiency gains to keep up with AMD.
Dumb issue 4, they had issues with chips dying because of corrosion and voltage problems which makes people not trust them. And then they lied about it.
I don't see how direct ownership by the US government would be something to be celebrated
The chips act, as enacted by Biden, was going to give them the money as a grant. Trump got elected and was like "whoa whoa whoa, hold up", and changed it from a grant to an equity buy.
Compared to just giving them money with no strings, giving them money for an equity stake in the company is unequivocally less bad.
Bear in mind: Trump probably doesn't have enough support among congressional republicans to kill the chips act outright. If he'd gone to congress and tried to claw the money back entirely, it would have been a messy own-goal. He's gotten a little better this time around at not rolling the dice on congress to have his back.
That's fair. Sounds like orange man navigated this one relatively well, but in the overall scheme of things I still don't feel warm and fuzzy about it.
I understand chip making is extremely critical from a strategy standpoint, but I don't see how direct ownership by the US government would be something to be celebrated. That said, Intel sucks.
Intel is a fucking lemon, this bailout just looks like more money siphoning by Israel/AIPAC.
It isn't.
Besides us not going to get money back, and the government being involved in private business being a generally bad idea...
Intel is in the shitter rn. They can hold on, but the new CEO just undid shit the last one was trying to do (build new factories, etc), which is a huge investment that's now just gone. That's dumb issue 1. Would the factories help? Maybe, maybe not, but now we'll never know and that's a lot of cash down the drain they could have recovered.
Dumb issue 2, nobody trusts Intel right now. Not only consumers, but now governments will question if the government is going to take more active steps into making backdoors into intel processors.
Dumb issue 3, intel has been making mediocre chips as of late, and not updating the process enough to have real efficiency gains to keep up with AMD.
Dumb issue 4, they had issues with chips dying because of corrosion and voltage problems which makes people not trust them. And then they lied about it.
They already have backdoors.
Intel ME, and chip design is in Israel, our favoritest country.
The chips act, as enacted by Biden, was going to give them the money as a grant. Trump got elected and was like "whoa whoa whoa, hold up", and changed it from a grant to an equity buy.
Compared to just giving them money with no strings, giving them money for an equity stake in the company is unequivocally less bad.
Bear in mind: Trump probably doesn't have enough support among congressional republicans to kill the chips act outright. If he'd gone to congress and tried to claw the money back entirely, it would have been a messy own-goal. He's gotten a little better this time around at not rolling the dice on congress to have his back.
That's fair. Sounds like orange man navigated this one relatively well, but in the overall scheme of things I still don't feel warm and fuzzy about it.