Biden administration scales back Intel's federal funding for chips

In the United States, the Biden administration has announced plans to decrease part of Intel's $8.5 billion federal funding allocated for computer chip manufacturing. This decision comes as part of a broader strategy related to Intel's separate $3 billion funding to supply computer chips to the military. Although President Biden originally announced this funding in March as part of efforts to boost U.S. semiconductor manufacturing through the CHIPS and Science Act, the current reductions are not tied to Intel's financial performance. In recent months, Intel has faced challenges, including significant workforce reductions aimed at competing with rivals like Nvidia and AMD. The CHIPS and Science Act was introduced amid broader concerns regarding chip supply security, particularly in the wake of the COVID-19 pandemic, which highlighted vulnerabilities in U.S. manufacturing reliance on Asian suppliers such as Taiwan. The act is part of a concerted effort to enhance domestic production capabilities and maintain a competitive edge in the semiconductor market, particularly in military technology.