"Pentagon Withdraws $2.5B Grant, Intel Shares Plummet"
Intel's shares dropped 3% after the Pentagon reportedly withdrew a planned $2.5 billion chip grant for the company, potentially reducing federal funding access and prompting Intel to seek more money from the Commerce Department. The company aims to secure over $10 billion in incentives from the CHIPS and Science Act. The Pentagon's decision comes after President Biden's spending package allocated $3.5 billion in defense funding for Intel to produce advanced semiconductors for military and intelligence programs. The reason for the withdrawal of funding was not explained, and Intel's growth in the semiconductor market could help the U.S. gain a larger global market share.