The math gets even worse if you read Intel's press release, which clarifies that 20,000 of those 30,000 new jobs will be temporary construction jobs connected to building new facilities in four states.
But the real kicker is the fact that Intel was already planning to build those facilities—which makes sense, because there is huge demand for semiconductors and the market is growing increasingly concerned about the fact that so many of the world's high-end chips are made in Taiwan and are thus under constant threat from China. According to Intel, the federal government's handout "supports Intel's previously announced plans to invest more than $100 billion in the U.S. over five years to expand U.S. chipmaking capacity."
Intel is a hugely successful, massively rich corporation. They don't need $8.5 billion in taxpayer money to build four plants that they were going to build anyway! They were going to spend $100 billion building plants.
And you thought federal elections weren't paid for with taxpayer dollars. This isn't the end of it either.
Unfortunately, this is likely only the start. The Biden administration still has $39 billion in CHIPS Act subsidies to distribute in the coming months, according to The New York Times. Even before that money is out the door—and long before anyone has had a chance to measure how effective the spending was—administration officials and top executives at chip-making companies agree that Congress should pass another round of subsidies.
Did congress appropriate that money so Biden could give it away?
Soviet style “industrial development” and likely to fair as badly.
Corporatism, a relative for classical fascism. And quite “soviet.” Courtesy of Democrats and some RINOs.
The federal loan part presumably will be paid back.
It is actually at the behest of the NSA that tech and communications companies are kept in the fold.
Every country uses it government and intelligence to monetize as normal corporations actual Government assets.
I am of two minds on this...
Yeah, as a supporter of capitalism and free markets, government handouts to anyone rub me the wrong way. The only time that “government spending” may be acceptable is during wartime, which brings me to the flip side.
We are on the brink of war with China, if not actually in a non-shooting war. They want Taiwan...badly...and if they get it, they will control the world’s chip market. We MUST get our chip manufacturing back to our shores FAST.
We have an Intel plant here in town. I can look out the front window of my business and see it over the rooftops. I have spoken to the number two guy at the plant about the future of chip manufacturing in the US. Right now, if the supply from Taiwan was cut off, ALL manufacturing in the USA would halt within six months. If the item being manufactured does use chips, the manufacturing process does. Transportation would be affected. This would impact food and energy distribution. It was pretty much a doomsday scenario.
I would probably feel better if it were a Republican administration overseeing this program, but we have to play the cards we are dealt and this really can’t wait.
No, somehow Joe’s cronies needed that money so that the “Big Guy” could get his 10%.