Intel’s Grant Lowered Below $8B by Biden Administration

The Biden administration is reportedly set to reduce the federal grant funding Intel was initially expected to receive under the CHIPS and Science Act. This adjustment follows Intel’s recent $3 billion contract win to supply semiconductors for the U.S. military, according to multiple reports.

In March, the Commerce Department proposed allocating $8.5 billion in grants to Intel for its commercial semiconductor projects in Arizona, New Mexico, Ohio, and Oregon. However, that amount has now been revised to less than $8 billion, The New York Times reported, citing four sources. Reuters also reported that Intel anticipates a “small reduction” in the grant amount, according to an insider.

Intel, which has not yet received any funds under the CHIPS Act, is reportedly finalizing its grant deal and has declined to comment further on the matter. A company spokesperson stated they would share details soon.

The U.S.-based chipmaker has been positioned as the leading beneficiary of the CHIPS Act, a bipartisan law passed in 2022 to boost domestic semiconductor manufacturing. Despite this, Intel has faced challenges meeting the program’s requirements and has yet to deliver on its promise of job creation under the initiative. Instead, the company has reduced its workforce by 15%.

The CHIPS Act, which allocates tens of billions in taxpayer subsidies, aims to enhance U.S. competitiveness in semiconductor production. Intel’s reduced grant reflects a balance between rewarding the company’s growth and maintaining accountability for the Act’s broader objectives.

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