(Reuters) – The U.S. authorities plans to scale back Intel Corp’s preliminary $8.5 billion federal chip subsidy to lower than $8 billion, the New York Times reported on Sunday, citing unnamed sources.
The change took into consideration a $3 billion contract that had been provided to Intel to make chips for the Pentagon, the sources advised the Times.
U.S. President Joe Biden’s administration mentioned this spring it might award almost $20 billion in grants and loans to Intel, boosting the corporate’s home semiconductor chip manufacturing and marking the biggest authorities spending to subsidize the cutting-edge chip manufacturing.
The United States introduced a preliminary settlement for $8.5 billion in grants and as much as $11 billion in loans for Intel in Arizona, with a few of the financing for use to construct two new factories and modernize an present one.
The disbursement was a part of the CHIPS and Science Act of 2022, an effort to spice up home semiconductor manufacturing with $52.7 billion in funding, together with $39 billion in semiconductor manufacturing subsidies and $11 billion for analysis and improvement.
(Reporting by Mike Stone and Costas Pitas; Editing by Kim COghill)
