The U.S. government is granting Intel up to $7.87 billion to help fund new chip plants in four states, the largest award in the Biden administration program aimed at reviving American chip-making. The funds are less than the $8.5 billion estimated for Intel in the preliminary award in March. That is because of previously announced funding of up to $3 billion to build secure facilities producing microchips for U.S. military and intelligence applications, according to senior administration officials. The grant money, set aside under 2022’s Chips Act, aims to fund a resurgence of U.S. manufacturing to counteract Covid-era supply-chain disruptions and address growing geopolitical tensions with China. Much of the world’s chip production has shifted to Asia in recent decades, leaving the U.S. with around 12% of the world’s manufacturing in 2020. The funds will be disbursed to Intel based on specific milestones, and Intel will get at least $1 billion in funds later this year, the administration officials said. Under the funding agreement, Intel has agreed to not engage in stock buybacks for five years, according to the Commerce Department.

Full report : The US awards Intel up to $7.865 billion under the CHIPS Act to help build or expand chip plants in Arizona, New Mexico, Ohio, and Oregon, including $1 billion+ later in 2024.