The Nationalization of Intel?

A 10% federal stake in the computer chip maker would be another dive into corporate statism.

WSJ editorial. Excerpts:

"The Biden Administration tried to ride to the rescue last year with up to $8.5 billion in direct grant funding and $11 billion in low-cost loans for Intel from the Chips Act. But as always with government largesse, it came with political strings attached. The Commerce Department press release touted in great detail Intel’s plans to expand child care for its workers. Scant mention of its plans to improve manufacturing.

Most of Intel’s award hasn’t been disbursed because the company has slowed its expansion plans amid weak demand for its chips. Biden Commerce Secretary Gina Raimondo tried to drum up demand from tech companies but found few takers."

"Intel ran a $18.8 billion loss last year and $3.8 billion during the first six months of this year."

"The company cut 15,000 jobs last year and plans to slash more than 20,000 this year."

"the Administration’s conditions for the equity investment may also make it harder for Intel to undertake needed changes to become more competitive. Politicians don’t like to preside over plant closures or employee layoffs. See Renault, the French car maker, for that political lesson."

"See the antiquated air-traffic control system, which Canada has shown could be better managed by a private operator. Or consider Amtrak, which has struggled to end money-losing routes owing to opposition from Members of Congress in rural areas."