[kortilla]

This is a thing intel didn’t care about doing. The government wants the fab strategically so is incentivizing them to do it. It has nothing to do with intel’s profitability otherwise.

It’s no different from grants to build renewables, farms, housing, munitions, whatever the government wants done in the country.

[s1artibartfast]

I agree with everything you said.

However, it is a very indirect way of getting what the government wants, prone to manipulation.

The more direct option is to contract and purchase the finished product.

The general problem is twofold. First, it can be more financially efficient to spend on incentives then finish product. Second, much of the public do not trust their representatives to perform this analysis and negotiate in good faith.

Is a 25 billion Upstream incentive cheap compared to the Chip Price premium the government would have to pay to have the same incentive?

The other question is who benefits from domestic chips and if the government is the right person to pay.