Intel's CHIPS Act Funding Cut By Over $600 Million

The Biden administration is reducing Intel's CHIPS Act award by over $600 million, citing a $3 billion military contract the chipmaker was also awarded. Engadget reports: Initially set to receive $8.5 billion from the domestic silicon production bill, the company will get up to $7.85 billion instead. On Tuesday, The New York Times reported that Intel has extended some plant openings beyond 2030 government deadlines. Intel posted its biggest-ever quarterly loss last month after announcing 15,000 layoffs in August. The chip-maker's struggles have reportedly led some government officials to worry about its ability to deliver as a central component of the Biden White House's CHIPS Act.

Intel will receive at least $1 billion in CHIPS Act funding before the end of the year. The company plans to invest $90 billion in the US by the decade's end, a reduction from its initial goal of $100 billion in the next five years. The Commerce Department said the chip maker is still on schedule to invest the full $100 billion on projects in four states: Arizona ($3.94 billion), Oregon ($1.86 billion), Ohio ($1.5 billion) and New Mexico ($500 million).

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