{"id":17219,"date":"2024-11-25T02:02:47","date_gmt":"2024-11-25T03:02:47","guid":{"rendered":"https:\/\/medexperts.pro\/?p=17219"},"modified":"2024-11-25T19:23:19","modified_gmt":"2024-11-25T19:23:19","slug":"washington-curtails-intels-chip-grant-after-company-stumbles","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=17219","title":{"rendered":"Washington Curtails Intel\u2019s Chip Grant After Company Stumbles"},"content":{"rendered":"
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The Biden administration is reducing its award to the chip maker, partly to account for a multibillion-dollar military contract.<\/p>\n

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The Biden administration plans to reduce Intel\u2019s preliminary $8.5 billion federal CHIPS grant<\/a>, a move that follows the California-based company\u2019s investment delays and broader business struggles.<\/a><\/p>\n

Intel, the biggest recipient of money under the CHIPS Act, will see its funding drop to less than $8 billion from the $8.5 billion<\/a> that was announced earlier this year, four people familiar with the grant said. They all spoke on the condition of anonymity because the final contract had not yet been signed. The change in terms takes into account a $3 billion contract<\/a> that Intel has been offered to produce chips for the U.S. military, two of these people said.<\/p>\n

The government\u2019s decision to reduce the size of the grant follows Intel\u2019s move to delay some of its planned investments in chip facilities in Ohio. The company now plans to finish that project by the end of the decade instead of 2025. The chip maker has been under pressure to reduce costs after posting its biggest quarterly loss in the company\u2019s 56-year history<\/a>.<\/p>\n

The move by the Biden administration also takes into account Intel\u2019s technology road map and customer demand. Intel has been working to improve its technological capacity to catch up to rivals like Taiwan Semiconductor Manufacturing Company, but it has struggled to convince customers that it can match TSMC\u2019s technology.<\/p>\n<\/div>\n<\/div>\n

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Intel\u2019s troubles have been a blow to the Biden administration\u2019s plans<\/a> to rev up domestic chip manufacturing. In March, President Biden traveled to Arizona to announce Intel\u2019s multibillion-dollar award<\/a> and said the company\u2019s manufacturing investments would transform the semiconductor industry. <\/p>\n

Intel\u2019s investment was at the forefront of the administration\u2019s ambition to return chip manufacturing to the United States from Asia. The CHIPS Act, a bipartisan bill passed in 2022, provided $39 billion in funding to subsidize the construction of facilities to help the United States reduce its reliance on foreign production of the tiny, critical electronics that power everything from iPads to dishwashers.<\/p>\n

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The Biden administration is reducing its award to the chip maker, partly to account for a multibillion-dollar military contract.The Biden administration plans to reduce Intel\u2019s preliminary $8.5 billion federal CHIPS grant, a move that follows the California-based company\u2019s investment delays and broader business struggles.Intel, the biggest recipient of money under the CHIPS Act, will see its funding drop to less than $8 billion from the $8.5 billion that was announced earlier this year, four people familiar with the grant said. They all spoke on the condition of anonymity because the final contract had not yet been signed. The change in terms takes into account a $3 billion contract that Intel has been offered to produce chips for the U.S. military, two of these people said.The government\u2019s decision to reduce the size of the grant follows Intel\u2019s move to delay some of its planned investments in chip facilities in Ohio. The company now plans to finish that project by the end of the decade instead of 2025. The chip maker has been under pressure to reduce costs after posting its biggest quarterly loss in the company\u2019s 56-year history.The move by the Biden administration also takes into account Intel\u2019s technology road map and customer demand. Intel has been working to improve its technological capacity to catch up to rivals like Taiwan Semiconductor Manufacturing Company, but it has struggled to convince customers that it can match TSMC\u2019s technology.Intel\u2019s troubles have been a blow to the Biden administration\u2019s plans to rev up domestic chip manufacturing. In March, President Biden traveled to Arizona to announce Intel\u2019s multibillion-dollar award and said the company\u2019s manufacturing investments would transform the semiconductor industry. Intel\u2019s investment was at the forefront of the administration\u2019s ambition to return chip manufacturing to the United States from Asia. The CHIPS Act, a bipartisan bill passed in 2022, provided $39 billion in funding to subsidize the construction of facilities to help the United States reduce its reliance on foreign production of the tiny, critical electronics that power everything from iPads to dishwashers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and\u00a0log into\u00a0your Times account, or\u00a0subscribe\u00a0for all of The Times.Thank you for your patience while we verify access.Already a subscriber?\u00a0Log in.Want all of The Times?\u00a0Subscribe.<\/p>\n","protected":false},"author":1,"featured_media":17221,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-17219","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/17219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17219"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/17219\/revisions"}],"predecessor-version":[{"id":17222,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/17219\/revisions\/17222"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/17221"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}