A.G. Gancarski
When it comes to the U.S. government taking an equity stake in chipmaker Intel, Rick Scott says at least the taxpayers are getting something out of taking an “interest in a company.”
That’s better than what happened under President Joe Biden, when the CHIPS and Science Act of 2022 doled money to Intel and other tech firms with no strings attached.
During an appearance Monday on CNBC’s “Squawk Box,” Scott said Intel got “$4 billion out of the Chips Act,” which he “completely opposed.”
“What we said is, ‘oh, here, you know, Intel, you get $4 billion, you don’t have to operate a plant,'” Scott said.
The Senator noted Intel told him during a Senate hearing the company would continue doing business in China regardless of whether the company invaded Taiwan or not, further shaking his confidence.
“If that’s the way we’re going to get a return on the $4 billion we put up, if that’s the only way we’re going to get a return, then we ought to get a return,” Scott reasoned.
All told, the federal government is putting $11.1 billion into the company, and will receive 433.3 million shares of common stock at $20.47 per share, equivalent to a 9.9% stake in the company and priced lower than retail buyers can get the stock at currently. It’s been priced in the $24-25 range in recent weeks.
Scott, who was Governor of Florida for eight years, likened the transactional nature of the deal between the Donald Trump administration and the beleaguered tech company to economic development deals when he was in Tallahassee.
“I said, I will help you, but it’s tied to how much do you pay, how many jobs you create? Do you keep those jobs? That’s what we should be doing,” Scott advised.
