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.
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.
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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.
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.
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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. | 25.16 | +0.66 | +2.71% |
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.
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