Intel’s military defense grant may take a bite out of CHIPS Act funding.
Intel was awarded a $3.5 billion grant to build chips for the US military as part of a spending bill President Biden signed last weekend, but now the Pentagon no longer wants to foot the bill, according to a report from Bloomberg.
This could reportedly force the Department of Commerce to dip into CHIPS Act funding to pay Intel, which could come with some consequences, Bloomberg reports:
The change could mean a greater share of Intel’s Chips Act funds is devoted to military uses, rather than commercial ones... It’s unclear whether the Secure Enclave funding will be swallowed into Intel’s total awards — meaning the company gets less overall money than expected — or come on top of what Intel was already set to receive, leaving less for everyone else.
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