The Biden administration said Tuesday that it would award up to $7.86 billion in direct funding to Intel, with the U.S. chip giant set to receive at least $1 billion of that money before the end of the year.
The money is a reduction from Intel’s preliminary award of $8.5 billion, which President Biden announced during a visit to the company’s Arizona plant in March.
The Commerce Department said it had reduced Intel’s grant because the chip maker, the biggest recipient of money under the CHIPS Act, also received a $3 billion contract to make semiconductors domestically for the military.
But the Commerce Department also detailed in a project document that Intel, which is under financial pressure because of a sales slump, had extended timelines for some projects beyond a 2030 government deadline.
It also reduced the estimated jobs it would create in Ohio, where it will require 3,500 fewer employees than the 10,000 it previously estimated, the Commerce Department said.
Persons:
Biden
Organizations:
Intel, Commerce Department
Locations:
U.S, Arizona, United States, Ohio
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