The reduction is largely a byproduct of the $3 billion that Intel is also receiving to provide computer chips to the military. President Joe Biden announced the agreement to provide Intel with up to $8.5 billion in direct funding and $11 billion in loans in March.
The changes to Intelâs funding are not related to the companyâs financial record or milestones, the people familiar with the grant told. In August, the chipmaker announced that it would cut 15% of its workforce â about 15,000 jobs â in an attempt to turn its business around to compete with more successful rivals like Nvidia and AMD.
Unlike some of its rivals, Intel manufactures chips in addition to designing them.
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