According to sources cited by The New York Times, the United States is reportedly set to reduce Intel Corp’s federal chip grant from the preliminary $8.5 billion to below $8 billion. This adjustment factors in a separate $3 billion Pentagon contract for chip production.
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| The proposed class action against Intel, Chief Executive Patrick Gelsinger, and Chief Financial Officer David Zinsner was filed in San Francisco federal court. Image: Reuters |
This spring, in a dramatic
gesture, the Biden administration announced that Intel would get nearly $20
billion in grants and loans to increase semiconductor manufacturing in the
United States. It was the biggest-ever government outlay — under the 2022 CHIPS
and Science Act — that is intended to boost American semiconductor production,
offering $52.7 billion, of which $39 billion would come in the form of
subsidies and $11 billion would fund research.
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Intel’s allocation includes $8.5
billion in grants and up to $11 billion in loans for projects in Arizona — money
that has been promised for building two new factories and upgrading an existing
plant.