The United States government plans to reduce Intel Corporation’s initially announced $8.5 billion federal chip subsidy to below $8 billion, The New York Times reports, citing anonymous sources. The adjustment considers a $3 billion Pentagon contract for chip production.
Revised Support for Semiconductor Expansion
Earlier this year, President Joe Biden’s administration had announced nearly $20 billion in grants and loans for Intel to boost domestic semiconductor production. The initiative aims to enhance investments in Intel’s facilities, including constructing two new plants and upgrading an existing one.
Under the original agreement, Intel was set to receive $8.5 billion in subsidies and up to $11 billion in loans for its Arizona operations. However, the subsidy has now been scaled back as part of broader budgetary considerations.
Intel remains a key player in the U.S. semiconductor strategy, with the federal government prioritizing domestic chip production amid global supply chain challenges.
