Intel’s federal chips grant reportedly cut below $8 billion

A revision on funding Intel’s semiconductors.

Intel, chip

The US government is expected to reduce Intel Corp‘s preliminary $8.5 billion federal chips grant to less than $8 billion, according to a report by The New York Times. The decision reflects Intel’s recent $3 billion contract to produce chips for the Pentagon, unnamed sources said.

Earlier this year, the Biden administration announced nearly $20 billion in grants and loans for Intel to expand its semiconductor manufacturing capabilities. The funding, part of the 2022 CHIPS and Science Act, supports building two new factories in Arizona and modernising an existing one.

The CHIPS Act allocated $52.7 billion to bolster US semiconductor production, including $39 billion for subsidies and $11 billion for research and development, as part of a national push to strengthen domestic chip manufacturing and reduce reliance on foreign supply chains.