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DangerStranger138 OP t1_jaf3eml wrote

Chipmakers don't need to share any profits at all as long as their projections are correct within a certain margin. All this is saying is that companies can't lie and apply for a small margin fab only made possible by government funds, then make mad stacks in reality then leave. As long as the companies are rational and realistic in their applications everyone gets to keep their money.

There should be plenty of companies that apply openly laying out the case for mad profits and they will be able to keep all of it as long as they deliver.

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grimkhor t1_jaf4l2e wrote

>Recipients who receive more than $150 million in direct funding "will be required to share with the U.S. government a portion of any cash flows or returns that exceed the applicant’s projections by an agreed-upon threshold," the department said.
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>Commerce expects "upside sharing will only be material in instances where the project significantly exceeds its projected cash flows or returns, and will not exceed 75% of the recipient’s direct funding award."

I read that part. I know. The issue is for that "loan" you have also to do these things.

>provide affordable childcare
>
>must provide details of any plans to buy back their own shares over five years
>
>Applicants must address six program priority areas including plans "to commit to future investment in the U.S. semiconductor industry
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>Applicants should also "create opportunities for minority owned, veteran-owned, and women-owned businesses; demonstrate climate and environmental responsibility; invest in their communities by addressing barriers to economic inclusion; and commit to using iron, steel, and construction materials produced in the United States."
>
>winning awards will be required to enter into agreements restricting their ability to expand semiconductor manufacturing capacity in foreign countries of concern

That's a big list of costs for basically a loan that you only pay back 75%. Esp. the last point that is not only about China but about ANY country the government doesn't like.

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