Yes! Financing Capex is investing to grow the value of a company. There is no short term payout to investors. It is a bet on the future payout of the company and it's current management. Financing M&A is investing to suck out immediate value from the combined company. There is a huge short term payout to some investors. There is no long term growth investment.
I agree. It is staggering how the US finance industry can destroy US manufacturing. Their trick is to offer the owners of a company a payout that is just too large to refuse. The cost to the company is a slow death. This has happened to the US machine tool industry in the 1980's. The US system relies on the FTC to prevent this from happening.
If regulators OK this, would be a disaster as it redefines scale and drags the industry into a titanic M&A cycle that benefits no one, except investors. There would be implications for suppliers, foundries, channel, customers and the future of innovation. It might seem interesting but it's not going to be amusing at all.