The reality is that with this Administration, if they do make an investment into IFS, it will basically guarantee that any major domestic company wanting to build HVM microprocessors in the US will be required to use IFS to fab some portion of their processors. This could be done via many avenues such as tariffs/export duties, tax benefits (or punishments), carve outs, domestic content requirements, or countless other ways. It wouldn't surprise me if there's some weird three-way action going where Gov't makes investment for preferred shares like (MP Materials deal, which popped the stock by 50%), have some major companies "invest" into IFS like Nvidia, AMZN, MSFT, META, Google to own a slice for guaranteed capacity (if they like it or not), and arm twist TSMC to run IFS so it can be half way efficient (and allow keeping the US protecting TW). If TSMC ran IFS, it would be nearly the same as TSMC's silicon shield... since TW would prob has all sorts of secret sauce/code/programming to keep the lines up... and if it was cut off from TW, it would result in lines down anyways. Good news for Intel is that it would get out from under the bloated dead weight cash burning anchor of IFS, and just focus on figuring out a way in designing their way out of paper bag.
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@bn The government assists corporations all the time, footing the bill for most new-technology R&D and taking stakes in various companies at times.
That may not be 1800's capitalism, but back then the corporations essentially were the government.
And people still had wooden teeth too.
Before getting too excited about getting some of that sweet free govt money, keep in mind that there may be some tradeoffs, such as requiring the breakup of IFS and/or a spinoff.
So the govt cheese is granted, but only to an independent IFS and not to Intel, per se.
Also seems possible that an IFS Ch11 filing could be part of the deal, so that all past liabilities are wiped out, and that also means that there is no benefit to current shareholders of any investment by the govt or TSMC.
That would be the correct capitalist way of structuring the deal, as the current shareholders should be wiped out for failing to hold the Board accountable all these years. They got it coming.
@bm what? What do you mean? You are not making sense. Govt helping corporations is very much NOT capitalism. The extreme of this is China, a famous capitalist country, right?
@be you mean like the auto industry and the banks? It happends.
All there volume!!!!!
Private companies receiving big gov't aid is capitalism? Where did you study? At Chuck e cheese?
President TACO is awesome!
@ac Just sure to bring the lube.
@b3 What are you talking about... this is capitalism at it's best. US jobs, US taxes, US security, and the US gov't makes money to pay back those tax breaks. No wonder Intel is in the sh----r if these are the employees they have these days.
America is going full co-mie. Not cool, man. Where's Rocky Balboa when you need him?