3 ms·

I don't think this will make a difference. Money is fungible. If my operating expenses are $5B, and I'm getting $1B from the CHIPS Act, I'll simply apply that $

I don't think this will make a difference. Money is fungible. If my operating expenses are $5B, and I'm getting $1B from the CHIPS Act, I'll simply apply that $1B to my operations, giving me $1B from the $5B to use for buybacks. Or more likely, I'll use $0.5B for buybacks and use the remaining $0.5B for operations. This way I get to do more buybacks while still utilizing the government money for accomplishing more than I could without it.

sitkack 4y ago
Any entity taking CHIPS money should be precluded from having any buybacks precisely for this reason.
- thelamest 4y ago
  In general, stock buybacks aren’t socially undesirable, but in this case would be more troubling I guess as they signal the company feels its R&D spending potential was already saturated.
- powerhour 4y ago
  Hell, we could even resume the prohibition on buy backs in general.