Biden Cuts Intel’s Chip Award by More Than $600 Million

Published On Nov 26, 2024, 5:04 AM

Intel has been awarded up to $7.86 billion from the CHIPS Act, but this is a reduction from an initial $8.5 billion due to a recent $3 billion military contract Intel secured for semiconductor production. As part of this funding agreement, Intel has extended timelines for certain projects, including a commitment to invest $90 billion in the U.S. by 2030, down from a previous $100 billion target. The construction timeline for its Ohio chip plants has also been pushed back, with the first plant now expected to open in 2030 instead of 2025.

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Despite the reduction in funding, Intel's commitment to invest heavily in U.S. operations and its strategic focus on military contracts could bolster its long-term growth potential. The adjustments in timelines might reflect market realities, but the significant investment still positions Intel favorably within the semiconductor industry.

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