‘There Will Be Attrition’: Biden Admin To Slash Handout For Chip Maker In Blow To $39 Billion Manufacturing Push

The White House plans to curtail a multi-billion dollar subsidy for chipmaker Intel as the company dials back on construction projects following record-breaking losses.

The manufacturer was the largest beneficiary of the Biden-Harris administration’s 2022 CHIPS and Science Act (CHIPS Act), being awarded $8.5 billion in grants and up to $11 billion in subsidized loans as part of the legislation’s $39 billion domestic semiconductor production push. Now, the White House has dialed back its funding to less than $8 billion following Intel’s decision to delay private investments in Ohio manufacturing facilities after posting a $16.6 billion quarterly loss in October, according to The New York Times.

The Biden-Harris administration’s decision also comes in response to fears that Intel will be unable to catch up technologically with Asian rival Taiwan Semiconductor Manufacturing Company (TSMC), the NYT reported. It also follows Intel’s selection as the recipient of a $3 billion U.S. military contract.