Underscoring the “con” in semiconductors
Well that didn’t take long. Just nine days ago I wrote about how Washington was picking up the check for the semiconductor industry’s aggressive stock buyback programs, distributing billions in subsidies to an industry that could have funded itself if it hadn’t chosen to shower its shareholders with cash. And despite the passage of the wittily named CHIPS Act, which was supposed to encourage real investment in research and production, they’re turning the taps on the cash shower on again. The Financial Times reports: On the same day that Congress passed the law, Intel,… Read More
Washington will pick up the check
Semiconductor firms are about to get showered with cash thanks to a new bill, The CHIPS and Science Act of 2022—CHIPS standing for, cleverly, The CREATING HELPFUL INCENTIVES TO PRODUCE SEMICONDUCTORS Act. Because it involved free money for capitalists, 17 Republicans (out of 50) voted for it despite their habit of voting against almost anything supported by Democrats except money for the Pentagon. Biden is scheduled to sign it on Tuesday, August 9. It’s a $280 billion package designed to encourage semiconductor manufacturing and research in the US. Pundits and generals have… Read More
LBO News from Doug Henwood 