back to article Biden to inject Intel with CHIPS fab cash 'next week'

The Biden administration may announce billions in government CHIPS subsidies to offset the cost of Intel's US fab expansion as early as next week. Citing sources familiar with the matter, Reuters said US President Joe Biden and Commerce Secretary Gina Raimondo will unveil the multi-billion dollar funding package during an …

  1. Kev99 Silver badge

    Intel is throwing off BILLIONS of free cash flow. They no more need subsidies than the man in the moon. All the subsidies will do is fatten the pockets of the C-levels and wall street vipers.

    1. Yet Another Anonymous coward Silver badge

      Don't forget stock buy-backs - Intel is still in the SP500 so it boosts peoples ETFs

      Wait a minute, if this boosts everyone's portfolio is this communism ?

      1. RandomIdiot


        Except that Intel hasn't bought-back any stock since Q1 2021 (the same quarter which Pat Gelsinger returned in the middle of). And he cut the dividend by 2/3. And the criteria around the CHIPS act discourages buybacks.

  2. Anonymous Coward
    Anonymous Coward

    More corporate welfare

    Yet again, the center-right wants to use corporate welfare instead of doing the right thing and imposing heavy fines on corporations that don't do the right thing on their own.

    I know, no political party in the US is prepared to seize the means of production and turn it over to the workers. But they can at least do better than handouts to the ultra-rich.

    1. Anonymous Coward
      Anonymous Coward

      Re: More corporate welfare

      >But they can at least do better than handouts to the ultra-rich.

      Hmm. You're not from around here are you. The whole system is literally based on that.

  3. Woodnag

    This will quietly collapse in a year or two since the US doesn't have the process engineers to staff the facilities.

    1. Yet Another Anonymous coward Silver badge

      It will quietly collapse in a year or two cos there is a 3-5 year wait list at ASML for the next-gen kit to fill them. Then there will be a cyclic downturn in the semiconductor industry and the drop in demand mean the plants wont be needed.

  4. Tron Silver badge

    I can see cost savings here.

    The US has ditched the free market and switched to the Chinese model of state funding, so surely the WTO can now disband. All the money that funded it should be divvied out to those who lack food and shelter.

    Brits shouldn't feel left out. You will see the same decisive use of state control implemented here. Your local bus company will now be operated by those beacons of competency, your local councils, rather than being left to the vicissitudes of the free market.*

    *But not if your local council is bankrupt.

    1. Yet Another Anonymous coward Silver badge

      Re: I can see cost savings here.

      No the busses will be run by the council because they are a loss making public service vital to getting people to work and school.

      However the roads will be privartised because they are infrastructure and only private industry can do long term investment in infrastructure

      <ad popup> If you download our app today you get a 30% voucher off use of the road outside your home in off-peak hours <ad>

  5. Lordrobot

    More Ice Cream Makers than Cows

    This is the Obama Battery Factory, the Trump Foxconn real estate game all over again. Think about this for just a goldfish brain moment. At present, two fab factories are handling all global chip fab, TSMC and Samsung. The "CHIPS ACT Battery Plant II" program is calling for roughly 10 fab chips in the United States. So exactly how are these Fab plants going to all make money?

    Worse the cost estimates already place any chips fabbed in the United States at a 50% increased cost. And who is going to bring their Chips to Intel for Fab. Aside from the fact that Intel failed at 10nm Chips they compete with fabless companies. Why would NVIDIA or Qualcomm bring their proprietary chips to Intel? It won't happen. Further, look at the placement of the INTEL Fab factories alone.... Columbus Ohio to take advantage of unemployed Auto Workers and their Unions and Arizona which has a water shortage.

    Then you have the largest buyer and maker of chips in the world, CHINA. So what's the plan, Stan? To convert Vietnam into a consumer products manufacturing hub?

    Think about TSMC... they are going along with this when it will only destroy their markets. This is because TSMC doesn't believe the US can be successful in FAB plants. This is the Foxconn story. TSMC and Samsung are along for the real estate deal. Meanwhile, Japan gets nothing from any of this.

    Oh but but but it is different this time... The Gov really means it. OK fine. Name one successful Gov picking winners foray that has been successful in the last 60 years. There is none. Did you see the much-hyped new lunar landers? One blows up on launch losing all its fuel and the other falls over on its side on the moon. Yup, Gov picking more winners. This is just another Super Collider in the making.

    Oh BTW... the entire US Semiconductor business is just 2.3% of the GDP and shrinking 3% annually. The business model of chip-making is wretched. Shelf life is short and if you can't find a buyer then you go broke. So what is the plan? Is the US military going to buy all the US-made chips? Or are we back to Foxconn claiming LED and big-screen TVs will be made in Wisconsin, or Texas, or the Rust Belt in Ohio? the UAW will show them how to make chips!

    1. Roland6 Silver badge

      Re: More Ice Cream Makers than Cows

      > Name one successful Gov picking winners foray that has been successful in the last 60 years.

      Well, there is Rolls Royce, but given the US/UK governments nearly killed it…

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