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Intel is receiving about $7.9 billion in federal grants, the US Department of Commerce said Tuesday, as the Biden administration finalizes CHIPS Act agreements ahead of Donald Trump taking office.
It is $600 million less than President Joe Biden's $8.5 billion preliminary grant announced in March. Intel is receiving less than what was initially promised because it also received a separate grant of $3 billion to produce chips for the military, the Department of Commerce told The New York Times.
The chip giant is on track to receive at least $1 billion of the total grant award before the end of this year, a senior administration official told Bloomberg.
President-elect Trump has previously criticized the CHIPS Act and suggested he would prefer tariffs to incentivize semiconductor manufacturing on US soil. This has caused the Biden administration to scramble to finalize billions of dollars in payments before the end of the year.
The CHIPS Act cash will help Intel boost its semiconductor production in the US. It is expected to invest nearly $90 billion in the US by the end of the decade.
US Secretary of Commerce Gina Raimondo said in a press release that Intel's investments across Arizona, New Mexico, Ohio, and Oregon would "supercharge American innovation" and that the company is playing an important part in the "revitalization" of the semiconductor industry in the US.
"Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country's long-term economic growth and national security," added Intel CEO Pat Gelsinger.
Intel's share price is down by almost 50% this year. It has racked up billions in losses and faced a series of challenges, including layoffs.
The Wall Street Journal reported in September that Qualcomm was interested in acquiring Intel. However, its takeover interest has since cooled as a result of some complications related to acquiring the entire company, Bloomberg reported on Tuesday, citing people familiar with the matter.
Intel didn't immediately respond to Business Insider's request for comment, made outside normal working hours.
