Washington Curtails Intel’s Chip Grant After Company Stumbles

Published On Nov 24, 2024, 7:59 PM

The Biden administration is reducing Intel’s federal CHIPS Act grant from $8.5 billion to less than $8 billion, due to Intel's delays in planned investments and broader struggles in the business. This comes after Intel faced its biggest quarterly loss in its history and has struggled to keep up with competitors like TSMC. The decision to decrease funding reflects the government's response to Intel's investment delays and the company's current technology roadmap and customer demand. This reduction poses potential challenges for the Biden administration’s domestic chip manufacturing goals, as Intel is a key player in returning chip production to the U.S.