Intel’s new addiction to subsidies

Some fundamental things that the Intel Government Affairs team have failed to make the ELT understand as they all beat their chests about the US and EU Chips Act include the following :

what Governments “give”, they can equally take away
what Governments “give” with one hand, they take back with the other (15 per cent corp tax increase)
what Governments “give”, they always condition heavily and insist on a “get” (e.g no mass layoffs , that is fundamental to Congress).
There is NO FREE LUNCH in this political exchange . Intel has become a subsidy junkie. Not only is it the opposite of being a Technology Leader , but it is ties the recipients in knots.

I know for a fact that Bruce Andrews and his Team know this but that they are not explaining it to ELT as it would take the sheen off the open goal they scored with the Chips Acts . I know for a fact that Pat and Keyvan don’t realise it as their judgement has been clouded by dollar signs in their eyes .

Contrast all of this to 15-20 years ago when Intel was unassailably no 1 and CRB travelled the world making speeches AGAINST subsidies

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Taking Taiwan would be a checkmate move.

China would be very d-mb to seize Taiwan.

It’s not just TSMC that is critical.
It’s also ASML and related equipment suppliers.

China invading Taiwan would do nothing to the supply chain in the long term. It would asymmetrically damage China significantly without hurting the west very much.

The semiconductor supply chain would simply replicate itself in other places since the fab customers are bigger than the fabs by an order of magnitude. ASML already doesn’t sell to China and they sure as he-l wouldn’t sell to an occupied Taiwan.

TSMC only leads because they have a massive R&D money supply from smartphone and AI giants. AMD and other lesser player draft behind the big boys that take the lead in process development. It’s very much an active partnership with Apple and other whales.

I would argue that Samsung is better positioned as a number 2. Intel is way behind both in terms of technology and just as important - ecosystem, customer relations and service. Intel is not used to close partnerships with customers with demanding specifications - especially if those demands hurt the main CPU business.

From "Chip War" by Chris Miller: "From day one, TSMC wasn't really a private business: it was a project of the Taiwanese state." If you bother to read this book, you learn that a) semiconductors are a strategic resource, like oil or rare metals; b) the money required to compete effectively in the business has reached stratospheric levels; and c) Intel is the last big bet the US has in the industry. If we go away, or sell off our foundry business, all of the production will be in East Asia. As the pandemic demonstrated, the fragility of the supply chain between there and here is such that even a temporary interruption will wreak havoc on our economy. Libertarian economics are all well and good in theory. They don't work in today's world. Adam Smith is so 300 years ago...

Say that to the oil, agriculture, defense companies. You just hate intel for stupid reasons eventhough you and your relatives depend on it.. "Semiconductors and Intel aren’t and certainly don’t deserve subsidies".

ELT need these things spoon fed to them? I guess we need new ELT members that have some common sense.

No government has successfully supported ailing IC business so far. It burns through too much money. The same money could be used to buy a lot more votes elsewhere.

It's quite simple really.

EVs were/are an innovative and breakthrough technology and product to get us off fossil fuels and perhaps deserve subsidies. Semiconductors and Intel aren’t and certainly don’t deserve subsidies

And yes. If you own a tesla, government is subsidizing you. In effect, you are a welfare queen.

OP: Tell that to your Tesla CEO. He is a welfare queen.

"what Governments “give”, they can equally take away"

you are making a distinction between government and business
in some situations they are the best of friends
facebook/google and our government
major players on wall street like blackrock and our government

they can never run out of money, they can just print more
and degrade your living conditions more

so this is how rome died, not very quick or exciting

Thread regarding Intel Corp. layoffs

Intel’s new addiction to subsidies

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