The Chips ACT was written to primarily benefit Intel with tens of billions of US taxpayer money. And despite that being priced into Intel's market cap, it is still worth less than AMD. Hey taxpayers, how does it feel to get fleeced by a has-been tech company who is wasting billions on chip fabs producing chips that no one wants and is making their CEO one of the highest paid in America? And is about to lay off the few remaining Americans working in semiconductors? At this point, Intel employs more Indians than Americans in actual engineering jobs.
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The joke is on Pat... A few months after the Chips Act, congress passed 'The Inflation Reduction Act' (haha, it does no such thing...)
Anyway, as part of The Inflation Reduction Act, corporations now have to pay 15% minimum tax. Intel has been under that 15% minimum tax roughly half of the last five or ten years. So, now Intel is subject to a 15% min which wipes out part of the value of the tax credit.
Anyway, I just wish the CEO would focus on strategy and execution instead of trying to get the country to bail him out of this mess. Getting government help isn't the solution. Government's are fickle and you can't count on them (also as evidenced by the new 15% minimum tax). You can also go back and read your history. What happened when America was afraid Japan semiconductor dumping would finish us off in the 80's? Government funded Sematech... It went no where and in the end, the innovators win, not the grifters.
I agree that AMD is doing way better than INTC. However, the CHIPS ACT funds are not distributed yet. The funds are not even committed. Congress has not even written the rules for applying for the funds...
That $20B is the woke dividend.
The downside is that they won't layoff people, especially the DEI folks. Pat carries the mill stone for "creating middle class jobs" along with the electricity bill for keep the fab lights on.
Write your congressman.