The WSJ just ran an article, on the back of a Harvard Biz School prof who said the US must have an "industrial policy" and drop the whole "return on invested capital" finance metric for public stock cos like Intel. (A rather radical proposal). (or...a case of China becoming more US like with it's capitalism, and the US becoming more China-like?....all things converge.....).
"Intel Shows Limits of Chips Act
Chip-making giant hurt by technological missteps and slumping PC sales that subsidies won’t fix"
Re the latter article, I would say TSMC has not been a "great" stock to own either. Also bleeds away cash flow entirely on capex and dividends just like Intel with nothing left over, year after year. BUT..(!)...TSMC doesn't bear the American burden of having to do "buybacks" in addition to dividends! This difference alone accounts for a material (whopping) additional bleed of 16% of operating cash flow generated every year!
The WSJ just ran an article, on the back of a Harvard Biz School prof who said the US must have an "industrial policy" and drop the whole "return on invested capital" finance metric for public stock cos like Intel. (A rather radical proposal). (or...a case of China becoming more US like with it's capitalism, and the US becoming more China-like?....all things converge.....).
"Intel Shows Limits of Chips Act
Chip-making giant hurt by technological missteps and slumping PC sales that subsidies won’t fix"
https://www.wsj.com/articles/intel-shows-limits-of-chips-act-11659105553
and
"U.S. Bid to Revive Chip Manufacturing Collides With Wall Street’s Demands
--Greg Ip.
https://www.wsj.com/articles/u-s-bid-to-revive-chip-manufacturing-collides-with-wall-streets-demands-11663160403
Re the latter article, I would say TSMC has not been a "great" stock to own either. Also bleeds away cash flow entirely on capex and dividends just like Intel with nothing left over, year after year. BUT..(!)...TSMC doesn't bear the American burden of having to do "buybacks" in addition to dividends! This difference alone accounts for a material (whopping) additional bleed of 16% of operating cash flow generated every year!
Really enlightening article! Thanks!
Nice prospective, and I enjoy your past articles, very observant 😉
Thank you so much for your feedback! Glad to hear this!