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The Biden administration is expected to trim the amount of federal grant funding Intel was originally anticipated to receive from the CHIPS and Science Act after the semiconductor maker won a significant defense contract, according to multiple reports.
The Commerce Department in March announced a proposal for Intel to receive $8.5 billion in grants for its commercial semiconductor projects in Arizona, New Mexico, Ohio and Oregon, under the law passed in 2022. But that amount has been reduced to less than $8 billion, the New York Times reported Sunday, citing four sources.
Intel is expected to receive less grant funding than expected under the CHIPS and Science Act after receiving a $3 billion defense contract, according to multiple reports. (Reuters/Dado Ruvic/Illustration / Reuters Photos)
Reuters reportedly separately on Monday that Intel is expecting a “small reduction” in the award, according to one source.
Both outlets said the adjustment was made after Intel won a $3 billion contract in September to supply semiconductors for the U.S. military.
INTEL’S FINANCIAL STRUGGLES THREATEN BIDEN ADMIN CHIP STRATEGY
Intel declined to comment on the situation when reached by FOX Business on Monday, but a spokesperson said the company is very close to finalizing its deal and will share details soon.
President Biden (C) talks to Intel CEO Patrick Gelsinger (L) as factory manager Hugh Green (R) looks on as Biden tours the Intel Ocotillo Campus in Chandler, Arizona, on March 20, 2024. The White House unveiled almost $20 billion in new grants and lo (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images / Getty Images)
The U.S.-based chipmaker is expected to be the chief beneficiary of the tens of billions in taxpayer subsidies allocated under the bipartisan CHIPS Act passed two years ago.
INTEL HAS ITS ‘WORK CUT OUT’ DESPITE LAUNCH OF NEW CHIPS: BETH KINDIG
But so far, the company has not received any funds as it worked to meet the government’s requirements – and instead of creating the jobs promised under the policy, it has slashed its workforce by 15%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| INTC | INTEL CORP. | 24.50 | +0.06 | +0.25% |
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Intel’s stock is down more than 47% year to date. Shares were up more than 2% in early afternoon trading on Monday, hovering around $25.
