Re:Intel Gets Up to $7.9B Award for U.S. Chip-Plant Construc...
by xienze on Monday December 02, 2024 @09:34AM
(#42296598)
> And as others have said they cant buy back stock with this money grant.
Money is fungible though. If I gave you $1000 and stipulated that you can only spend it on your mortgage, and you do indeed do that, you still have an extra $1000 you normally wouldn't have at the end of the month. Now let's say you decide to buy a TV with your extra $1000. Did the $1000 I give you go towards paying your mortgage or buying a TV, which is something I explicitly said you couldn't do?
Now scale that scenario up to Intel's case. Methinks they'll build a fab AND do a stock buyback. Under normal circumstances, they'd have to pick one of those things to do.
Money is fungible though. If I gave you $1000 and stipulated that you can only spend it on your mortgage, and you do indeed do that, you still have an extra $1000 you normally wouldn't have at the end of the month. Now let's say you decide to buy a TV with your extra $1000. Did the $1000 I give you go towards paying your mortgage or buying a TV, which is something I explicitly said you couldn't do?
Now scale that scenario up to Intel's case. Methinks they'll build a fab AND do a stock buyback. Under normal circumstances, they'd have to pick one of those things to do.