Intel CEO is "frustrated" with CHIPS Act payout progress — Intel has received $0 from the $8.5 billion that the US government promised
Intel CEO is "frustrated" with CHIPS Act payout progress — Intel has received $0 from the $8.5 billion that the US government promised
“My simple message is, ‘Let’s get it finished,’” said Gelsinger in an interview with The New York Times.
This reticence to give out CHIPS Act funding right away apparently stemmed from fears from the government that Intel specifically would not meet its promises. “[There is fear that] Intel is going to take chips money, build an empty shell of a factory and then never actually open it, because they don’t have customers,” said former Commerce Department official Caitlin Legacki.
Honestly this seems like rare reasonable move by the federal government.
I mean, 'take the money, build an empty factory' is what tech companies do when you give them a money helicopter.
Maybe we should stop giving them any money and just nationalize these failed businesses that need bailouts? (Yes, yes, Intel isn't failed - yet - but my point is still valid.)
If they're important to the national security or whatever, then they're important enough to go through that process for too.
"We took your $8.5 billion and instead of building 8.5 billion dollars worth of extra capacity, we built the capacity we were in the process of building anyway and used 8.5 billion dollars of our money to buy back stock"
I am a bit shocked they got a back bone left...
There is more to this story.
Endless state aid while peasants are being driven into poverty finally being recognized but the state?
Jk
Thanks. I was hoping someone would shed light in the comments.
The U.S. government put some objectives between CHIPS Act recipients and their money, with milestones including completing building projects, securing customers, etc. “Obviously, with elections, you know, nigh in front of us, hey, we want this done,” said Gelsinger, with the possibility of a new presidential regime lighting a fire of urgency.
Imagine having to do something for your 8.5 billion fucking dollars.
Why won't the government just give them the money and trust that they'll do what they said? It worked out great paying companies to roll out fiber years ago, that's why we're all on reliable, high speed fiber internet today.
As someone who works in the telecommunications industry, look up RDOF.
Not only is it a HUGE timeline that does nothing to incentivize actually completing a project early, but the main RDOF winner in my area has only wireless service available with zero construction projects planned except to put up more wireless equipment.
It also means those areas that company claims they’ll serve one day are ineligible for any more grant money and now that companies that are willing to bring fiber to those homes have to pay a boatload out of pocket while the RDOF winner just hangs out and watches.
Thank you daddy
XXX
So they can buy back more shares
Entitled ceo demanding for corporate welfare.
Hey gelsinger, how about stop doing all those stock buybacks, you fucking tool
How is he supposed to make line go up if no free government moneys?
I'm so sick of these welfare queens crying all the time.
They even kill babies (startup competitors). They don't deserve the handout.
Now he knows how us regular people feel when we have to fight insurance and the doctor’s billing office to get them to code/process the claim correctly and keep calling to bug them for the refund check and it still takes over a year. Welcome to the real word.
I mean, I guess he gets a tiny fraction of that, since this won't ruin his company or him financially for the rest of his life if it doesn't work out, nor does he actually put in the work any further than a phone call that his assistant sets up. The rest is all done by various departments, all he does is wait for an email saying it's been recieved.
That’s a great point. Don’t want the poor whittle CEOs to have to actually do any work for their ridiculous salaries.
this won't ruin his company or him financially for the rest of his life if it doesn't work out
It wouldn't be the only thing but I think there's a nonzero chance that something like this is one key step in a spiral that forces Intel into bankruptcy. Their inability to get their foundry business off the ground currently threatens their long term prospects, and if they get stuck in a place where the government won't trust them because they don't have customers, and the customers won't trust them because they don't have the money, then that might truly lead to the end of the company, with his business decisions taught in business schools as a case study.
Has he tried to stop sucking?
Maybe just admit that the only reason he's still the CEO of anything is because of DOD contracts and STFU.
If a company needs so much from the tax payer to stay afloat, to me that means they can't be trusted with money since they mismanage already, or they don't have a marketable product to sell. Any payouts should equal government ownership
Grown man on his knees begging
Grown man on his knees "begging"
( ͡° ͜ʖ ͡°)
'Tis the season (Locktober)
Looks like he don't think Trump is going to pay.
Lets not pay them a dime and then nationalize them lol
"My simple message is, 'Boost share price before I get shown the door,'" said Gelsinger in an interview with the New York Times.