NEW YORK, Nov. 26 (Xinhua) -- The U.S. government is granting Intel up to 7.87 billion U.S. dollars to help fund new chip plants in four states, the largest award in the Joe Biden administration program aimed at reviving American chip-making, reported The Wall Street Journal (WSJ) on Tuesday.
The funds are less than the 8.5 billion dollars estimated for Intel in the preliminary award in March. That is because of previously announced funding of up to 3 billion dollars to build secure facilities producing microchips for U.S. military and intelligence applications, the report cited senior administration officials.
"The grant money, set aside under 2022's Chips Act, aims to fund a resurgence of U.S. manufacturing to counteract any future supply-chain disruptions such as happened during the COVID-19 era, and address growing geopolitical tensions," it noted. "Much of the world's chip production has shifted to Asia in recent decades, leaving the U.S. with around 12 percent of the world's manufacturing in 2020."
The funds will be disbursed to Intel based on specific milestones, and Intel will get at least 1 billion dollars in funds later this year, according to the report. Under the funding agreement, Intel has agreed to not engage in stock buybacks for five years, according to the Commerce Department.
