In September, Intel CEO Pat Gelsinger announced plans to spin off Intel Foundry, citing potential flexibility to secure independent funding.

Intel said on Wednesday its deal for $7.86 billion in U.S. government subsidies restricts the company's ability to sell stakes in its chipmaking unit if it becomes an independent entity.

The Silicon Valley company will receive less money from the CHIPS Act after winning a $3 billion military contract and changing some of its investment commitments.

To build or expand semiconductor factories in several U.S. states.

The U.S. Department of Commerce today confirmed it has awarded $7.865 billion to chip giant Intel under the CHIPS and Science Act.

Computer chip manufacturer Intel has faced setbacks with its “Silicon Heartland” fab currently under construction outside New Albany, Ohio. But after protracted negotiations, $7.8 billion in federal grants are beginning to flow to Intel projects around the country.

The Biden administration has finalized a deal to give Intel Corp. nearly $7.9 billion in federal grants, the largest direct subsidy from a program to boost domestic semiconductor manufacturing.

The U.S. Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for Intel , down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon.

The government grant is less than originally expected because the chip giant is also receiving separate funding for defense-related projects.

Donald Trump has criticized the CHIPS Act and suggested he'd prefer tariffs to incentivize semiconductor manufacturing on US soil.