Intel is expected to see reduced U.S. grant but final amount could be greater

From Investing.com: 2024-11-25 14:05:31

Intel is expected to see a reduction in the $8.5 billion in U.S. subsidies planned for the chipmaker due to a $3 billion deal with the Pentagon. The final direct grant amount is likely to be greater than $7.5 billion. Intel’s shares rose 3% on the news.

The $8.5 billion in grants were part of a larger package of incentives announced in March. Intel’s funding reduction was not connected to its struggles this year. CEO Gelsinger’s heavy spending has not revived the chipmaker, leading to layoffs and a stock price drop of 47%.

The U.S. Department of Commerce did not comment on Intel’s award. President Biden’s administration awarded Intel nearly $20 billion in grants and loans to boost domestic semiconductor chip output. The funding is part of the 2022 CHIPS and Science Act, which includes $52.7 billion to support semiconductor production and research.



Read more at Investing.com: Intel expects reduced U.S. grant after winning defense contract By Reuters