Biden Administration to Reduce Intel’s CHIPS Act Grant: Impact on INTC Stock

The Biden administration is planning to reduce Intel‘s preliminary $8.5 billion CHIPS Act funding grant, according to recent reports. This grant, which was the largest award under the CHIPS Act initiative, is now expected to be cut to less than $8 billion, as indicated by four sources speaking to *The New York Times*.

This adjustment in the grant amount, which has not yet been finalized, could have significant implications for Intel’s plans and investments in the semiconductor industry. The CHIPS Act is a critical initiative aimed at boosting domestic semiconductor production and reducing reliance on foreign suppliers.

The reduction in funding may impact Intel’s stock performance, although the current stock price of Intel (NASDAQ: INTC) has shown relative stability. As of the latest trading data, Intel’s stock price stands at around $24.50, with a minor increase of 0.25%.

Investors and analysts will be closely watching how this development affects Intel’s long-term strategies and financial outlook. The company’s historical stock performance has been subject to various fluctuations, reflecting broader market trends and specific company events.

The CHIPS Act funding is crucial for Intel’s expansion plans, including the development of new manufacturing facilities. Any reduction in this funding could influence the company’s ability to execute these plans efficiently and on schedule.