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The Biden administration is expected to reduce the amount of grant money Intel was expected to receive from the CHIPS and Science Act after the semiconductor maker won a key 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 legislation 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 funding than expected under the CHIPS and Science Act after receiving a $3 billion defense contract, according to multiple reports. (Photos by Reuters/Dado Ruvic/Illustration/Reuters)
Reuters reported separately on Monday that Intel expects a “slight reduction” in the award, according to the source.
Both stores said the repairs were made after Intel won a $3 billion contract in September to supply semiconductors to the U.S. military.
INTEL’S FINANCIAL STRUGGLES AT THE TOP OF BIDEN ADMIN CHIP STRATEGY
Intel declined to comment on the situation when reached by FOX Business on Monday, but a company spokesperson said it is very close to finalizing its deal and will share details soon.
President Biden (C) chats with Intel CEO Patrick Gelsinger (L) as factory manager Hugh Green (R) looks on as Biden visits the Intel Ocotillo Campus in Chandler, Arizona, March 20, 2024. The White House unveiled approx. $20 billion in new grants and see (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images / Getty Images)
The US-based chip maker is expected to be the biggest beneficiary of billions in taxpayer funding allocated under the bipartisan CHIPS Act that was passed two years ago.
INTEL ‘JOB CUT’ DESPITE NEW CHIP LAUNCH: BETH KINDIG
But so far, the company has not received the money as it has been working to meet the government’s demands – and instead of creating the jobs it was promised under the policy, it has cut its workforce by 15%.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| INTC | Company INTEL CORP. | 24.50 | +0.06 |
+0.25% |
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Intel stock is down more than 47% year to date. Shares rose more than 2% in afternoon trading Monday, hovering around $25.
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