What was
a $8.9 billion investment in US chipmaker Intel
Is now
the value of the government’s 9.9 percent equity stake crashed from almost $40 billion to well under $30 billion
, still an unrealized 200%+ gain, so I guess the government “bought the dip” in a way. Though why Republicans back their favourite President engaging in casual nationalization still baffles me. Maybe any Democratic president should employ a similar path to nationalization disguised as a bailout: to legislatively constrict the business model of any company they want to acquire at discount “market rates”, then restore something along previous regulatory conditions.
It’s to get chip fab in the US. Taiwan is not a stable place for the advanced chips the US and rest of the world rely on.
The stake is still worth far more than taxpayers paid, so calling this an $11 billion taxpayer loss is misleading. But the bigger issue is a president treating industrial policy like his personal trading account. America needs a semiconductor strategy, not a day trader with access to the Treasury.
bad Intel, haha
Honestly, how is Intel loss-making and managed so badly by the company despite having top of the line CPU?
