Initially criticized by President Trump, the CHIPS Act, designed to boost domestic chip production with a $52 billion fund, faced scrutiny for its early grant distribution to existing projects. Despite Intel’s struggles in fulfilling its commitments, Trump’s administration decided to partially nationalize the company using remaining CHIPS funds, purchasing a stake and effectively bailing out the struggling chipmaker. This deal, while boosting Intel’s stock price, shifted financial risks onto taxpayers by removing the company’s obligations and accountability, ultimately proving that America was investing in companies, rather than the other way around.
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The U.S. government has acquired a 10% stake in Intel, a deal announced late Friday, fueled by existing funding from the CHIPS and Science Act and the Secure Enclave program, totaling $8.9 billion in grants. This investment, valued at approximately $11 billion, aims to bolster Intel’s efforts to regain its position in the chipmaking industry and move production stateside. The deal also grants the government the option to purchase an additional 5% stake and represents a significant win for both the government and Intel. This move is intended to support domestic chip production, reinforcing national security and potentially yielding financial returns.
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President Trump plans to impose tariffs of up to 100% on foreign-produced computer chips and pharmaceuticals, aiming to reshore production to the United States. This action specifically targets Taiwanese semiconductor manufacturers, like TSMC, despite their investment in an Arizona facility. Trump criticizes the CHIPS and Science Act, arguing that financial incentives are unnecessary and that tariffs will incentivize domestic production. However, the long lead times for chip factory construction mean that significant price increases for consumers are a likely consequence.
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It’s baffling to think that the supposed leader of the free world can be so clueless about crucial global industries like the semiconductor market. With Donald Trump’s recent misunderstanding of Taiwan’s role in producing American chips, it becomes painfully clear that he is not only ignorant but also dangerously uninformed. The fact that he associates chips with snack foods like Pringles or Doritos speaks volumes about his lack of knowledge in this area.
When the Taiwan Economy Minister mentioned that Trump “has a lot on his plate”, it’s hard to ignore the grim reality that his plate is probably overflowing with fast food and ignorance.… Continue reading
John Q. Hosedrinker