3 ms·

On the surface, buying 49 percent of Intel wouldn't infuse the company with any capital. It would just bail out investors.

fuzzylightbulb 1y ago
[flagged]
- deleted 1y ago
  [deleted]
- downrightmike 1y ago
  It will be a heck of a RICO case
- themafia 1y ago
  [flagged]
- CogitoCogito 1y ago
  Why would this post be flagged? It could of course just be automatic due to disingenuous flagging by users, but any administrator could see there is no reason to flag this and then unflag it afterwards.
cyphertruck 1y ago
It actually wouldn't. The sale price will be pretty close to the current market price, maybe %10 more. If the Government kicks in funds to underwrite the deal (say a loan to TSMC) then the deal would likely happen exactly at market price. That means investors who sell are getting the current low market price or a little bit higher--- they will still be down the massive amount. This is really bailing out current management-- letting them be replaced by the more capable TSMC people and getting an attaboy for helping the US government strengthen the alliance with Taiwan, keeping peace in the region.
- delfinom 1y ago
  But TSMC isn't a design house. Intel has both fab and design. TSMC's management could only help out on the fab side.
  - ExoticPearTree 1y ago
    > Intel has both fab and design. The fab part is not a good deal since Intel struggles a lot with it and they are not even on par with what TSMC was producing a few years back using older processes. I would guess in this deal, TSMC would produce the chips and fire all the Intel foundry people.
  - robocat 1y ago
    TSMC was founded on the principle of never doing design. The promise to never steal customers from their clients.
- senkora 1y ago
  > This is really bailing out current management-- letting them be replaced by the more capable TSMC people The trouble with a competent organization buying a decadent organization is that leadership at the decadent organization is often much better at winning political infighting (they have a lot of practice). So it’s very easy to end up in a situation where the disfunction metastases up into the parent. At the very least, executive attention is finite and splitting attention like this is distracting to the parent executives, which harms the parent organization.
  - nine_k 1y ago
    Yes, the Boeing buying McDonnell case :( But the buyer can just unconditionally lay off all the top brass, exactly for that reason. The layoff can be more of a golden parachute kind, to prevent any sabotage.
    - mjevans 1y ago
      Why don't we ever see management suddenly locked out without any ability to get into their accounts or buildings? They failed the duty, no golden package or BS.
zaik 1y ago
I would not be surprised if some member of the Trump syndicate has acquired a significant stake in Intel shortly before this announcement.
Thorrez 1y ago
Who would TSMC buy the shares from? Investors or Intel? See my comment here: https://news.ycombinator.com/item?id=44809007 https://news.ycombinator.com/item?id=44809007 .

fuzzylightbulb 1y ago

[flagged]

deleted 1y ago
[deleted]
downrightmike 1y ago
It will be a heck of a RICO case
themafia 1y ago
[flagged]
CogitoCogito 1y ago
Why would this post be flagged? It could of course just be automatic due to disingenuous flagging by users, but any administrator could see there is no reason to flag this and then unflag it afterwards.

cyphertruck 1y ago

It actually wouldn't. The sale price will be pretty close to the current market price, maybe %10 more. If the Government kicks in funds to underwrite the deal (say a loan to TSMC) then the deal would likely happen exactly at market price. That means investors who sell are getting the current low market price or a little bit higher--- they will still be down the massive amount. This is really bailing out current management-- letting them be replaced by the more capable TSMC people and getting an attaboy for helping the US government strengthen the alliance with Taiwan, keeping peace in the region.

delfinom 1y ago
But TSMC isn't a design house. Intel has both fab and design. TSMC's management could only help out on the fab side.
- ExoticPearTree 1y ago
  > Intel has both fab and design. The fab part is not a good deal since Intel struggles a lot with it and they are not even on par with what TSMC was producing a few years back using older processes. I would guess in this deal, TSMC would produce the chips and fire all the Intel foundry people.
- robocat 1y ago
  TSMC was founded on the principle of never doing design. The promise to never steal customers from their clients.
senkora 1y ago
> This is really bailing out current management-- letting them be replaced by the more capable TSMC people The trouble with a competent organization buying a decadent organization is that leadership at the decadent organization is often much better at winning political infighting (they have a lot of practice). So it’s very easy to end up in a situation where the disfunction metastases up into the parent. At the very least, executive attention is finite and splitting attention like this is distracting to the parent executives, which harms the parent organization.
- nine_k 1y ago
  Yes, the Boeing buying McDonnell case :( But the buyer can just unconditionally lay off all the top brass, exactly for that reason. The layoff can be more of a golden parachute kind, to prevent any sabotage.
  - mjevans 1y ago
    Why don't we ever see management suddenly locked out without any ability to get into their accounts or buildings? They failed the duty, no golden package or BS.

zaik 1y ago

I would not be surprised if some member of the Trump syndicate has acquired a significant stake in Intel shortly before this announcement.

Thorrez 1y ago

Who would TSMC buy the shares from? Investors or Intel? See my comment here: https://news.ycombinator.com/item?id=44809007 https://news.ycombinator.com/item?id=44809007 .