Intel’s Federal Chips Grant Faces Reduction, US Cuts Funding to Below $8 Billion

Image Credit: Reuters

The U.S. government plans to reduce Intel Corp's initial $8.5 billion federal chips grant to below $8 billion, according to a report by the New York Times, citing unnamed sources.

The reduction takes into account a $3 billion contract Intel received to produce chips for the Pentagon. Earlier this year, the Biden administration had announced nearly $20 billion in grants and loans to support Intel's domestic semiconductor manufacturing efforts, marking the largest government subsidy for advanced chip production.

The U.S. had initially agreed to provide Intel with $8.5 billion in grants and up to $11 billion in loans to support its semiconductor operations in Arizona, with the funds earmarked for constructing two new factories and upgrading an existing one.

This funding is part of the 2022 CHIPS and Science Act, which allocates $52.7 billion to boost domestic chip production, including $39 billion in subsidies for semiconductor manufacturing and $11 billion for research and development.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.