Semiconductor subsidies for Intel are expected to be reduced, taking into account contracts with the Ministry of Defense, according to sources.

November 26, 2024, 8:38 AM GMT+9

It is expected that the $8.5 billion subsidy planned to be provided by the US government to Intel for use in factory construction and other purposes will be reduced. Two knowledgeable sources revealed this on the 25th.
In March of this year, the Biden administration announced a preliminary agreement to provide Intel with an $8.5 billion subsidy and up to $11 billion in loans based on the CHIPS for America Act.
According to one source, the final agreement is expected to be reached within the next few days. While the final amount of subsidy for Intel is unclear, one source mentioned a high possibility of it being over $7.5 billion.
In September of this year, Intel secured a $3 billion contract with the US Department of Defense. According to sources, as this contract comes from the $39 billion allocated by Congress for semiconductor subsidies, not the Department of Defense budget, direct subsidies to Intel will be reduced.
The reduction is unrelated to various challenges Intel is facing, such as deteriorating profit margins and workforce reductions.
The U.S. Department of Commerce refrained from commenting.