The Pentagon's decision to withdraw funding for Intel's chip manufacturing grant has created a funding shortfall and disrupted the distribution of funds from the CHIPS Act. The Commerce Department is now working to fill the gap.
The Pentagon ’s surprise decision to withdraw $2.5 billion in funding for Intel ’s semiconductor manufacturing plans has created a significant shortfall in the company’s expected incentives under the CHIPS Act. This move has disrupted the distribution of funds from the legislation, leaving the Commerce Department scrambling to fill the substantial funding gap.
According to people familiar with the matter, the Pentagon’s withdrawal occurred in the days leading up to a government funding deadline, forcing lawmakers to redirect the Commerce Department to reallocate other CHIPS Act funds to make up the $2.5 billion shortfall. This change could potentially mean a greater portion of Intel’s incentives will be devoted to military and intelligence-related chip production, rather than commercial purposes
Pentagon Funding Intel Semiconductor Manufacturing CHIPS Act Commerce Department
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