The US government wants to reduce the grant for Intel from $8.5 billion to less than $8 billion. This decision is the result of delays in the company's investments and significant business problems. This was reported by The New York Times, citing anonymous sources.
Intel was supposed to receive $8.5 billion under the CHIPS Act, but due to delays in the company's investment in the Ohio factory, the government decided to reduce funding. Initially, the new factory was planned to be launched by the end of 2025, but now the company aims to complete the project by the end of the decade.
The changes also took into account an additional $3 billion offered by the US government to the company to produce chips for the army.
In addition, the US government has taken into account Intel's technology strategy and the needs of its customers. Although the company is actively working to improve its technology to catch up with competitors such as TSMC, it is still having difficulty convincing customers of its ability to realize these ambitions.
The difficulties Intel faced in 2024 undermined the plans of President Joe Biden's administration to accelerate chip production in the United States. In addition, the government is imposing strict requirements on companies that receive government support, and officials doubt Intel's ability to fulfill its investment commitments.
Neither the U.S. government nor Intel had any comment on this report.