05:44 PM EDT, 03/12/2024 (MT Newswires) -- Intel's ( INTC ) $3.5 billion grant under Chips and Science Act is facing caveats as the Pentagon scrapped plans to provide its $2.5 billion share, Bloomberg reported Tuesday, citing people familiar with the situation.

The US Department of Commerce, which is responsible for $1 billion of the grant, has been asked by lawmakers to cover the shortfall, according to the report.

The grant is part of a government spending package intended to develop advanced semiconductors for military and intelligence programs, according to reports.

The Commerce Department told Bloomberg it "looks forward to continuing to work with Congress on implementing the Chips and Science Act in a manner that promotes our economic and national security." It did not mention any specific companies.

Intel ( INTC ) declined to comment to Bloomberg, while Pentagon and the White House didn't respond immediately.

Neither Intel ( INTC ) nor the Defense and Commerce Departments immediately replied to requests for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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