Intel picks Ohio for semiconductor project

[216facts]

Yes, agree, I don't see them investing billions in a fab if the market does not turn around, they'll need to see a robust market to complete the investment. This also goes for Micron, TSMC, & Samsung new fabs.

What role did you play in the industry? I'm a design engineer, started back in the 80s at one of TI's GaAs fabs.

[SlideRules99]

Originally Posted by 216facts

Yes, agree, I don't see them investing billions in a fab if the market does not turn around, they'll need to see a robust market to complete the investment. This also goes for Micron, TSMC, & Samsung new fabs.

What role did you play in the industry? I'm a design engineer, started back in the 80s at one of TI's GaAs fabs.

Cool, you certainly know the biz!

To answer, I worked in Supply Chain and Operations Mgmt in the semiconductor industry. Spent some of that time doing factory capacity planning. It was brutal, yet fulfilling…lol.

It will be interesting to see how this plays out, for sure.

[Wile E. Coyote]

When they announce those build outs in Oregon, for instance, it's usually a 20 year plan. I'd say relax. It will happen over a very extended period of time.

[216facts]

Originally Posted by Wile E. Coyote

When they announce those build outs in Oregon, for instance, it's usually a 20 year plan. I'd say relax. It will happen over a very extended period of time.

Yes, definitely agree

[mshultz]

There's an article on the Columbus Dispatch site with the title Government aid will cut the cost of Intel's $20 billion project. It's for subscribers only, though.

[SlideRules99]

Originally Posted by mshultz

There's an article on the Columbus Dispatch site with the title Government aid will cut the cost of Intel's $20 billion project. It's for subscribers only, though.

Right, so I can’t access the article. Does it allude to 25% Federal subsidies per Fab from the CHIPS Act? That’s the last estimate I had heard. If so, that would be $5B of taxpayer funding on the two $20B Fabs. Please correct me if that’s wrong. Obviously that’s on top of the $2B incentives that Ohio taxpayers already signed up for as part of the original package to lure them here.

I don’t have a problem with this per se, and I don’t blame Intel for maximizing what they can get from taxpayer sources.

What I DO have a problem with is Intel’s continued insistence on paying out generous shareholder dividends - $6B last year alone - in an environment where their free cash flow has turned negative, and they are poised to receive multi-billion dollar taxpayer subsidies.

<<Intel is not touching its dividend, though, even as its free cash flow turned into the red during 2022 and is expected to be negative again this year. The chip maker paid out roughly $1.5B in dividends in the fourth quarter, completing $6B in annual payments, and maintained the same level of payments for the first quarter despite analysts questioning whether the company can afford it.>

https://www.marketwatch.com/story/in...nd-11675279447

I don’t like seeing taxpayer money flow to shareholder bank accounts in this manner. But I digress…

[mshultz]

Originally Posted by SlideRules99

Right, so I can’t access the article. Does it allude to 25% Federal subsidies per Fab from the CHIPS Act? That’s the last estimate I had heard. If so, that would be $5B of taxpayer funding on the two $20B Fabs. Please correct me if that’s wrong. Obviously that’s on top of the $2B incentives that Ohio taxpayers already signed up for as part of the original package to lure them here.

I don’t have a problem with this per se, and I don’t blame Intel for maximizing what they can get from taxpayer sources.

What I DO have a problem with is Intel’s continued insistence on paying out generous shareholder dividends - $6B last year alone - in an environment where their free cash flow has turned negative, and they are poised to receive multi-billion dollar taxpayer subsidies.

<<Intel is not touching its dividend, though, even as its free cash flow turned into the red during 2022 and is expected to be negative again this year. The chip maker paid out roughly $1.5B in dividends in the fourth quarter, completing $6B in annual payments, and maintained the same level of payments for the first quarter despite analysts questioning whether the company can afford it.>

https://www.marketwatch.com/story/in...nd-11675279447

I don’t like seeing taxpayer money flow to shareholder bank accounts in this manner. But I digress…

I can't access it either. Maybe your local library has a subscription.


As far as stocks, I only own one stock individually. The rest of my stocks are part of an S&P 500 index. I kept this stock because it provides a good dividend. If Intel substantially reduced or eliminated their dividend, their stock price would plummet.

[MPK21]

Intel delays construction timeline for its $20 billion chipmaking project in Ohio amid market challenges and the slow rollout of U.S. grant money. Hmm...

Looking now like (3) opening for CHIP production in Central Ohio.

[KathrynAragon]

Interesting article on the topic at hand. Sounds promising.

https://fox8.com/news/intel-will-not...Akopyan%20said.