Intel Shares Drop As Pentagon Withdraws $2.5 Billion Chip Grant

Intel shares fell 3% on Wednesday after a report that the Pentagon withdrew a planned $2.5B chip grant for the company
The grant was part of $3.5B in defense funding for Intel in President Biden's spending package
The withdrawal may decrease federal funding available to Intel and push the company to seek more money from the Commerce Dept
Apart from defense money, Intel has been seeking over $10B in incentives from the CHIPS Act
The reason for the Pentagon's withdrawal of the funding was not explained