US plans to reduce Intel’s $8.5 billion federal CHIPS grant below $8 billion: New York Times

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    Upgrade to Premium US plans to reduce Intel’s $8.5 billion federal CHIPS grant below $8 billion: New York Times Reuters Sun, Nov 24, 2024, 7:30 PM 1 min read

    In This Article:

    INTC

    (Reuters) – The US government plans to reduce Intel Corp's (INTC) preliminary $8.5 billion federal chips grant to less than $8 billion, the New York Times reported on Sunday citing unnamed sources.

    The change took into account a $3 billion contract Intel had been offered to make chips for the Pentagon, the people told the Times.

    • USD (INTC)

    This spring U.S. President Joe Biden's administration said it was awarding Intel nearly $20 billion in grants and loans, supercharging the company's domestic semiconductor chip output and marking the government's largest outlay to subsidize leading-edge chip production.

    The U.S. announced a preliminary agreement for $8.5 billion in grants and up to $11 billion in loans for Intel in Arizona, with some of the funding to be used to build two new factories and modernize an existing one.

    Intel CEO Pat Gelsinger delivers a speech at the COMPUTEX forum in Taipei, Taiwan June 4, 2024. REUTERS/Ann Wang · Reuters / Reuters

    The outlay was part of the 2022 CHIPS and Science Act, a bid to boost domestic semiconductor output with $52.7 billion in funding, including $39 billion in subsidies for semiconductor production and $11 billion for research and development.

    (Reporting by Mike Stone and Costas Pitas; Editing by Kim COghill)

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