this post was submitted on 24 Aug 2025
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Technology
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So how did they get all that stock for free?
When Biden was president the Democrats passed the Chips Act, which has grants for chipmakers to build in the US. When Trump took power he basically stopped issuing these grants to companies that were set to get them.
My understanding is that basically Intel will give 10% of itself if Trump stops blocking the grants it was already set to get. I guess Intel's thinking is that if they make the US a part owner, then Trump won't obstruct the company so much.
This might sound like good news (kind of) in that the government is getting equity in return for the money, but I doubt Trump will enforce the original requirements and purpose of the grants, so Intel probably won't end up finishing many of the factories it was supposed to build. It also sets a precedent that you can't rely on goverment grants to do things as future parties may change the terms of the deal retroactively, even after you already started.
I don't understand why they would want to build in the US? There's plenty of places with cheaper labour.
Because Biden paid them with grants to build in the US. It's that simple.
Beyond that there's stability and the likelihood of not being invaded or facing natural disasters.
There's meant to be government, legal, and financial institution stability too.
As well as intellectual property defense, trade secrets and NDAs.
Material supplies are meant to be stable too.
When you're investing in something as specialised as chip manufacturing, labour is a fraction of your concern. Both short and long term.
In case of war the country needs national supply of chips to put in rockets, planes, everything really.
If you make everything in Taiwan and that's the place that's getting blockaded by enemy Navy...
Is there some massive geopolitical issue hovering like a guillotine over Taiwan? ;)
For that matter, it was the same problem the US then faced back when it was getting much of their electronics from Japan, as the Soviet threat loomed so large.
Oh got it. It's Trump attempting to take credit for Biden's good legislation.
Now that checks out. Thanks!