The White House is reducing Intel’s CHIPS Act award by over $600 million. 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. However, the Commerce Department said the funding reduction was instead due to a $3 billion military contract Intel was awarded.
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
