Intel to Lose Part of US Funding

The US government will slash the sum Intel receives as part of the CHIPS and Science Act funding program. The New York Times stated Intel’s allocation was set to be reduced from $8.5 billion to less than $8 billion.

The news outlet explained several factors are at play, with the government apparently factoring in $3.5 billion worth of grants covering chip production for the US Department of Defense. The newspaper also mentioned a delayed build of a new chip plant in Ohio and an overall sense of unease about Intel’s competitiveness as factors in the government’s decision.

If the report is accurate, it would be another blow for Intel at a time when its revenue is under pressure and it is shedding up to 15,000 staff as part of efforts to reignite growth. The company is reportedly considering offloading assets, with investment banks Morgan Stanley and Goldman Sachs tasked with advising the company's top managers.