- The shortfall is disrupting plans to distribute money from the Chips Act
- Move forces Commerce Department to make up for the shortfall
- Intel set to get less total money than hoped — or others will
The Pentagon pulled out of a plan to spend as much as $2.5 billion on a chip grant to Intel Corp., people familiar with the situation said, putting the onus on another federal agency — the Commerce Department — to make up for the shortfall. The move threatens to limit the total amount that Intel has been expecting to get in federal funding, setting up a contentious situation, said the people, who asked not to be identified because the deliberations are private. Beyond the defense money, Intel has been seeking incentives worth more than $10 billion from the Chips and Science Act.
- Move forces Commerce Department to make up for the shortfall
- Intel set to get less total money than hoped — or others will
The Pentagon pulled out of a plan to spend as much as $2.5 billion on a chip grant to Intel Corp., people familiar with the situation said, putting the onus on another federal agency — the Commerce Department — to make up for the shortfall. The move threatens to limit the total amount that Intel has been expecting to get in federal funding, setting up a contentious situation, said the people, who asked not to be identified because the deliberations are private. Beyond the defense money, Intel has been seeking incentives worth more than $10 billion from the Chips and Science Act.
