I see people are misunderstanding this. He has an overall budget to work with. Instead of using this $2billion for building research facilities, it will be used instead for actual production facilities like the big ones that were talked about last night. My guess is the thinking is that if they can jumpstart production (and revenues) that the companies can than use those revenues to fund their own research. This probably moves the effects of the Chips Act forward a bit since now more of it will be pure production. Part of this might have to do with the problems the CCP is having. It is being reported in Russia, that there is almost a 50% fail rate with chips coming from China... and these are already chips that are 10 years behind the rest of the world.
Shouldn't those market facts been known before the Biden Admin threw money in the direction of the chip companies? Sounds like general incompetence and shoot from the hip legislation. Either way, bad governance.
Perform the following math: Cost of producing 1 chip in the USA: X Cost of producing 1 chip in Taiwan: Y If X > Y --> USA will not be able to sustain chip manufacturing. This is called capitalism. You don't produce at a higher cost just to satisfy a "this is for national security reason". Because when push comes to shove, your citizens aren't going to be willing to supply their tax money to keep a private company afloat in America.
Better pay attention to China's unrelenting pursuit and what that would mean to the military. So, yea, national security is an issue; while you are sitting all happy in today's world.
@@sillymesilly Well, I am a long time republican but most Republicans are just subsidizing a slightly different group of donors vs the democrats to be honest.
Ironically these are the same companies and ceo's as well as government officials that allowed all the tech manufacturing to leave to begin with. It needs to come back and the people need to be held accountable for it.
Interesting that this is discretionary for the executive branch to decide. He is basically "line item vetoing" this spending. Seems like the legislation would have had this as mandatory spending.
And why aren’t the CEOs of those companies direct their own funding and R&D? The USA didn’t “loose” chip mfg to China; they sent that manufacturing their cuz it was cheap. Stop blaming China for what the USA’s own businessmen did.
They way you guys phrased this... That drives me crazy, can we normalize regular headlines? Anyway, I think it's smart to invest more in a company like intel, I hope we can still continue to get new chip makers funded as well, but it's smart if we can upgrade what we have and build toward a new state of the art facility.
Why not use the money to create the next generations of Intels? I am sure there are an army of engineers swamped by the Intel bureaucracy that would explode in creativity if the yokes are removed. Space X was a case study
I'm still investing in Intel and going to let it ride until 2030 to re-evaluate. It really is a national security issue and will decide the global power structure for decades to come.
Echoes of Obama saying "manufacturing isn't coming back ", still resonating. How about reporting how much water these chip plants require. Any money for the Ohio town that had the toxic derailment??
I don't understand, President Biden said one thing and then just went back on helping the semiconductors? She didn't really explain it, she just went on to talk about Intel. Anyone want to help me understand or ignore me like most people do
Has to do with the overall budget, instead of allocating it to R$D it is being put to actual production. IF production can ramp up they will use the profits toward R$D. Research and Development generally do not add to the bottom line while actual production does. Intel already has a lot of R$D going on in various areas.
My understanding is that Intel does not have the best chip technology on the market. Increasing fab facilities to produce more underperforming chips does not make sense. Why not simply build another Taiwan fab location here? They have the best chips and the best technology. Is the Big Guy getting a 10% cut to fund Intel?
So now we’re going to have to use intel chips , they are so fare behind in the industrial if you don’t believe it , Joe chose them he can pick a loser out of a infinite number the winners .
China doesn’t complain anymore. They are making their own, thanks to the US sanctions. Taiwan used to have a purpose, no more. Taiwan chips are no longer needed.
Good thing the tax payers are giving INTEL so much money! This way they can buy back more shares and distribute more profits to the executives. WTF is wrong with the USA
@@jacqdanieles The company boasts about $152 BILLION of stock buy backs over the years but is losing money! They are juicing their EPS rather trying to be profitable. But its OK, 10s of billions of taxpayer money headed their way. Hope they buy back some more with it. Is that your idea of what needs to happen for re shoring?
@@Ryan-re3jf _"152 billion over the years"_ is a meaningless statistic. From their investor page: _"We have an ongoing authorization (originally approved by our Board of Directors in 2005 and subsequently amended) to repurchase shares of our common stock in open market or negotiated transactions. As of December 30th, 2023, we were authorized to repurchase up to $110.0 billion, of which $7.24 billion remain available. We have repurchased 5.77 billion shares at a cost of $152.05 billion since the program began in 1990."_ Their buyback program began when they were profitable. Sure they ought to have stopped it & reinvested in their own production. But that was under previous management. The current CEO was brought in to turn things around. And part of that plan is to return manufacturing to our country. Yesterday there was an earthquake in Taiwan. Had it flattened TSMC's fabs, we'd be wishing we had begun this process a decade ago.
@@jacqdanieles Why not, even if that money cant be directly used for it, it frees up other capital that can. Its a shell game. Not only that, where is the 150B they already used for buybacks??? Can they not build a facility with 150B?? Dont kid yourself.
Intel needs to make and design a different chip for it’s future; one that uses a frier and multi types of cooking oil to compete with the likes of Frito-Lay!😊
Did we limit CEO payout in return for the $20B we gave him? The CEO made $$ to outsource and now we are going to pay him $$ to bring it back?
what's being outsourced by intel?
So let’s not bring it back all because of 1 guy?
and the US never calls it subsidy
Dont worry, next china will ban subsidized US Chips. 😅😢😂
@@mujur9101 don't worry. The US will not even sell.
Everyone calls it a subsidy lol
Intel never left 1995. Terrible stock performance at all times.
I see people are misunderstanding this. He has an overall budget to work with. Instead of using this $2billion for building research facilities, it will be used instead for actual production facilities like the big ones that were talked about last night. My guess is the thinking is that if they can jumpstart production (and revenues) that the companies can than use those revenues to fund their own research. This probably moves the effects of the Chips Act forward a bit since now more of it will be pure production. Part of this might have to do with the problems the CCP is having. It is being reported in Russia, that there is almost a 50% fail rate with chips coming from China... and these are already chips that are 10 years behind the rest of the world.
Shouldn't those market facts been known before the Biden Admin threw money in the direction of the chip companies? Sounds like general incompetence and shoot from the hip legislation. Either way, bad governance.
makes sense.
We should just steal research like the Chinese do. They don't pay for it so why should we?
You sure? Still fake news to me
" 50% fail rate with chips coming from China."
really ?..... i never heard people complaining regarding to Huawei new phones
Perform the following math:
Cost of producing 1 chip in the USA: X
Cost of producing 1 chip in Taiwan: Y
If X > Y --> USA will not be able to sustain chip manufacturing. This is called capitalism. You don't produce at a higher cost just to satisfy a "this is for national security reason". Because when push comes to shove, your citizens aren't going to be willing to supply their tax money to keep a private company afloat in America.
The cost is more or less the same, US or Taiwan. Salaries are a smaller portion of it than you might think. The primary difference is actually taxes.
Better pay attention to China's unrelenting pursuit and what that would mean to the military. So, yea, national security is an issue; while you are sitting all happy in today's world.
uh you just hand waved off the entire defense industry and i'm pretty sure they among the most successful of US businesses
@@harryniedecken5321 Democrats wont reduce taxes. There goes your answer.
@@sillymesilly Well, I am a long time republican but most Republicans are just subsidizing a slightly different group of donors vs the democrats to be honest.
Ironically these are the same companies and ceo's as well as government officials that allowed all the tech manufacturing to leave to begin with. It needs to come back and the people need to be held accountable for it.
Interesting that this is discretionary for the executive branch to decide. He is basically "line item vetoing" this spending. Seems like the legislation would have had this as mandatory spending.
FYI, a single ASML EUV machine cost $300 million. Intel would need at least 30 of them per Fab site. So $20 billion will be eaten up quickly.
It's an aid. Not a total funding.
And why aren’t the CEOs of those companies direct their own funding and R&D? The USA didn’t “loose” chip mfg to China; they sent that manufacturing their cuz it was cheap. Stop blaming China for what the USA’s own businessmen did.
Copium at its finest. Asia is winning here.
And got payed handsomely for it.
it's cheap cus china subsidises it, prevents unions to keep wage's low
Yup! Moneymen again. Privatise profit, socialise debt.
not sure you fully understand the issue.
Why does the media always call massive investment in the company a "loss in revenue"? LOL
either 20B in chips act or more to fight a war in Taiwan, you take your pick.
it's funny how you make it sound like those are the only choices we have. These are false constructs manufactured by the U.S.
This is good news! Silicon Valley companies have a lot of money. We should take that away, not add to the stash.
CEO got paid bookoos of money to run a company into the ground. Amazing.
They way you guys phrased this... That drives me crazy, can we normalize regular headlines? Anyway, I think it's smart to invest more in a company like intel, I hope we can still continue to get new chip makers funded as well, but it's smart if we can upgrade what we have and build toward a new state of the art facility.
Why not use the money to create the next generations of Intels? I am sure there are an army of engineers swamped by the Intel bureaucracy that would explode in creativity if the yokes are removed. Space X was a case study
I'm still investing in Intel and going to let it ride until 2030 to re-evaluate. It really is a national security issue and will decide the global power structure for decades to come.
lol national security issue.. so this is just an extension of military industrial complex spending.
@@catsNcode yes.
20 billion is _anything_ but a drop in the bucket. Girl...do you know what you're saying?
Why do we need R&D funding when the big guy has his best friends already working on it
Corporate Welfare 😅🤣😂😆
Coporate Welfare AKA
Extreme Platinum EBT Card
@@ATL3xtra💯%
Echoes of Obama saying "manufacturing isn't coming back ", still resonating. How about reporting how much water these chip plants require.
Any money for the Ohio town that had the toxic derailment??
Obviously it should be “CHIPster Act 2, Back in the Fabit"
That jaw line my lord
American under capacity?
Guess someone saw the Silicon folks leaning right …
I don't understand, President Biden said one thing and then just went back on helping the semiconductors?
She didn't really explain it, she just went on to talk about Intel.
Anyone want to help me understand or ignore me like most people do
They're reallocating $2B of the funds from R&D to actual production facilities.
Oh that's a good thing. Thank you very much for replying
🙂
It is politics! Plain and simple!😂
Has to do with the overall budget, instead of allocating it to R$D it is being put to actual production. IF production can ramp up they will use the profits toward R$D. Research and Development generally do not add to the bottom line while actual production does. Intel already has a lot of R$D going on in various areas.
Ending RnD is stupid.
My understanding is that Intel does not have the best chip technology on the market. Increasing fab facilities to produce more underperforming chips does not make sense. Why not simply build another Taiwan fab location here? They have the best chips and the best technology. Is the Big Guy getting a 10% cut to fund Intel?
If we continue building oversupply, semis will be cheaper than water
He wasn't getting his cut, so out they go.
Cool story bro 😎
@@jacqdanieles but true story bro
@@karthikkumaresan1091 sure it is ... post the proof
To be fair, Silicon Valley companies and billionaires don't intent to give anything back. So... good!
@@karthikkumaresan1091 how's that proof coming along, bro?
Intel is way behind in silicon design. This shows how desperate Biden has become.
So now we’re going to have to use intel chips , they are so fare behind in the industrial if you don’t believe it , Joe chose them he can pick a loser out of a infinite number the winners .
How is this no classified as State Subsidies??? US complaining that other countries are providing state subsidies, but it’s doing it as well 😂😂😂😂😂
If you can't tell the difference between this and government subsidies made to put honest businesses out of market then you're a lost cause.
Anyone got her Onlyfans.
This is false. Chip funding are going to increase and r and d will also increase as ai is strategic for national security.
And intel just lost 7 billions dollar in a year. Our tax money get wasted.
No it didnt just get wasted! But They Stole it! Money always go to someone's wallet!
How much does China invest in semiconductors again?
Support Industries ? will still be foreign
China complained so he caved
China doesn’t complain anymore. They are making their own, thanks to the US sanctions. Taiwan used to have a purpose, no more. Taiwan chips are no longer needed.
20 billion dollars in stolen money.
This is totally wrong. Succumbed to pressure from a few who want to monopolize.. completely wrong decision. Should be accelerating chis act
Korea and Taiwan got you by the balls 😂
Radcom or Broadcom? RDCM or AVGO? lol
There is no future in chip foundry in usa. Why ? Too expensive..
So the ones they're building just up the road from me in Phoenix aren't being built?
Good thing the tax payers are giving INTEL so much money! This way they can buy back more shares and distribute more profits to the executives. WTF is wrong with the USA
How else do you think off-shoring will be reversed?
@@jacqdanieles The company boasts about $152 BILLION of stock buy backs over the years but is losing money! They are juicing their EPS rather trying to be profitable. But its OK, 10s of billions of taxpayer money headed their way. Hope they buy back some more with it. Is that your idea of what needs to happen for re shoring?
@@Ryan-re3jf _"152 billion over the years"_ is a meaningless statistic.
From their investor page:
_"We have an ongoing authorization (originally approved by our Board of Directors in 2005 and subsequently amended) to repurchase shares of our common stock in open market or negotiated transactions. As of December 30th, 2023, we were authorized to repurchase up to $110.0 billion, of which $7.24 billion remain available. We have repurchased 5.77 billion shares at a cost of $152.05 billion since the program began in 1990."_
Their buyback program began when they were profitable. Sure they ought to have stopped it & reinvested in their own production. But that was under previous management. The current CEO was brought in to turn things around. And part of that plan is to return manufacturing to our country.
Yesterday there was an earthquake in Taiwan. Had it flattened TSMC's fabs, we'd be wishing we had begun this process a decade ago.
@@Ryan-re3jf are they using taxpayer money for buybacks?
@@jacqdanieles Why not, even if that money cant be directly used for it, it frees up other capital that can. Its a shell game. Not only that, where is the 150B they already used for buybacks??? Can they not build a facility with 150B?? Dont kid yourself.
FJB+
Say it ain't so Joe .....please say it ain't so ................!!!
Why is she so passive aggressive?
Unions and minimum wage will destroy any chance of chip manufacturing in USA.
Intel should divest fab business instead of double down. It is a big waste money for US and Intel.
☺️☺️☺️☺️☺️
One word Ðoge.
😂 what does this have to do with doge?
You want "smart washers" - you gotta invest..
Meanwhile...
💂🏻
The work continues...
Intel needs to make and design a different chip for it’s future; one that uses a frier and multi types of cooking oil to compete with the likes of Frito-Lay!😊