07:30 AM EST, 11/25/2024 (MT Newswires) -- Intel's ( INTC ) preliminary $8.5 billion federal CHIPS grant is likely to be reduced to less than $8 billion by the Biden administration, the New York Times reported Sunday, citing four unnamed sources familiar with the matter.

The government's decision to cut the funding follows Intel's ( INTC ) move to delay some of its planned investments in chip sites in Ohio, the report added. The company reportedly pushed the completion of its project to the end of the decade instead of 2025.

The change in terms takes into account a $3 billion contract that the semiconductor producer has been offered to manufacture chips for the US military, the report said, citing two of the sources.

Neither Intel ( INTC ) nor the US Department of Commerce immediately responded to MT Newswires' requests for comments.

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