Intel Corporation (NASDAQ:INTC) stock is trading higher on Monday following a report indicating that the company is close to securing a $8 billion grant.

What To Know: According to CNBC which cited people familiar with the matter, the CHIPS Act Office and Intel are close to finalizing an approximately $8 billion dollar grant.

If awarded, the $8 billion is set to fund Intel's factory building efforts. The award is expected to be finalized by the CHIPS Act Office, which operates under the U.S. Commerce Department, within the next few weeks.

The New York Times, citing people with familiar with the matter, reported that the government has decided to reduce the grant from $8.5 billion to about $8 billion after the company delayed certain investments and continues to face other business struggles.

Specifically, the reduction takes into account the fact that Intel decided to delay its planned investments in chip facilities in Ohio. The company intends to complete the project by the end of the decade instead of its original 2025 target.

Furthermore, Intel has struggled to match the technological capabilities of competitors like Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) and recently reported its largest quarterly loss. The government's choice to reduce the grant also takes into account a $3 billion contract to manufacture chips for the U.S. military.

INTC Price Action: At the time of pubication, Intel stock is trading 2.84% higher at $25.20, according to data from Benzinga Pro.