According to The New York Times, the US government has trimmed Intel’s initial CHIPS Act grant from $8.5 billion to just under $8 billion due to concerns about the company’s delayed investments and financial struggles. This funding was part of a larger initiative by the government to strengthen domestic semiconductor manufacturing in response to increased global competition.
Intel, once expected to be the primary beneficiary of the CHIPS Act, has faced challenges meeting expectations following its largest quarterly loss in its 56-year history. Alongside this reduction, Intel was reportedly offered a $3 billion military contract to supply chips for the Department of Defense.
In March 2024, Intel and the Biden administration signed a preliminary memorandum for an $8.5 billion funding package as part of Intel’s plan to invest over $100 billion in expanding its US manufacturing operations with new chip facilities across several states.
This agreement also included up to $11 billion in additional loans from the US government aimed at solidifying Intel’s role as a key player in AI-driven semiconductor technology.
The decision to decrease the grant highlights Intel’s ongoing challenges as it strives for technological leadership while aligning with US goals of revitalizing domestic chip production.
Details regarding any other changes or conditions related to this reduced grant package remain unclear at this time.
2024-12-05 05:15:02
Article from www.computerworld.com