Biden Administration Finalizes $7.86B CHIPS Act Grant for Intel

Nov 25, 2024, 05:16 PM

The Biden administration has finalized a deal to provide Intel with a $7.86 billion grant under the CHIPS Act to fund the construction of new chip manufacturing plants in four states: Arizona, New Mexico, Ohio, and Oregon. This grant, the largest awarded under the Biden administration's program to revive American manufacturing, was initially expected to be $8.5 billion. The reduction in the grant amount is attributed to Intel's recent $3 billion contract to produce chips for the military, as well as the company's financial challenges and delays in investment commitments. Intel has also opted not to pursue a separate $11 billion low-cost government loan that had been offered earlier in the year.