The News
The Biden administration reduced Intel’s grant for chips manufacturing to $7.9 billion, a move that a senior administration official denied was related to the company’s financial struggles.
The decision to reduce the grant from the $8.5 billion initial target was “really driven” by a $3 billion award subsequently given to Intel for national security chip production, the official said, while acknowledging that “ongoing economic and market developments” did come up during the government’s due diligence process. Intel is building facilities to produce leading-edge chips and related technologies across Arizona, New Mexico, Ohio, and Oregon.
The federal funding will begin flowing this year, though the company opted against taking the $11 billion in loans offered through the chips program. Intel’s financial challenges have quietly alarmed Washington policymakers, though the finalized grant will provide some relief.