Pentagon Scraps $2.5 Billion Grant To Intel

According to Bloomberg (paywalled), the Pentagon has reportedly scrapped its plan to allocate $2.5 billion in grants to Intel, causing the firm's stock to slip in extended-hours trading. From a report: The decision now leaves the U.S. Commerce Department, which is responsible for doling out the funds from the U.S. CHIPs and Science Act, to make up the shortfall, the news outlet said. The Commerce Dept. was initially only supposed to cover $1B of the $3.5B that Intel is slated to receive for advanced defense and intelligence-related semiconductors. The deal is slated to position Intel as the dedicated supplier for processors used for military and intelligence applications and could result in a Secure Enclave inside Intel's chip factory, the news outlet said. With the Pentagon reportedly pulling out, it could alter how much Intel and other companies receive from the CHIPs Act, the news outlet said.

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