Intel has secured a $7.9 billion grant from the Biden administration, marking the largest direct subsidy under the CHIPS and Science Act aimed at bolstering domestic semiconductor manufacturing. This funding will support Intel's ambitious plans to invest nearly $90 billion in U.S. operations by the end of the decade, contributing to a broader $100 billion expansion strategy. The grant is contingent upon Intel meeting specific project milestones across four states, with the company expected to qualify for at least $1 billion this year based on progress already made.

The awarded funds are slightly less than the initially proposed $8.5 billion, and Intel opted not to take $11 billion in offered loans. This financial support comes at a critical time for Intel, which has faced challenges in maintaining its competitive edge in the semiconductor market. The funding is expected to enhance Intel's manufacturing capabilities, potentially improving its market position against rivals like AMD and NVIDIA, while also aligning with the U.S. government's goal of reducing reliance on foreign semiconductor supply chains.