The U.S. government is scaling down Intel's proposed $8.5 billion federal chips grant to less than $8 billion, partly due to a $3.5 billion contract Intel secured to produce chips for the Pentagon, reports the New York Times. The company will still receive more money from the government than any other chipmaker funded under the CHIPS and Science Act — Intel's recent woes clearly still worry the U.S. government.
Earlier in the year, the Biden administration committed nearly $20 billion in grants and loans to Intel to help Intel expand its manufacturing operations in the U.S. The preliminary funding included $8.5 billion in grants and up to $11 billion in loan guarantees to help construct new production facilities in Arizona, New Mexico, Ohio, and Oregon. Also, the company was awarded $3.5 billion from the U.S. Department of Defense to build chips for government, military, and secret service agencies in America.
