Posted 3/12/2024, 9:04:14 PM
Pentagon Withdraws $2.5B Intel Grant, Shifting Funding Burden to Commerce for CHIPS Act
- Pentagon scrapped $2.5B grant to Intel originally aimed to establish Intel as primary semiconductor provider for defense/intelligence
- Shift in funding burden to Commerce Dept, which now must bridge $2.5B gap under CHIPS Act
- CHIPS Act is $53B effort to boost domestic semiconductor manufacturing and supply chain resilience
- Decision reconsidering anticipated funding structure and Intel's future defense-focused role
- Despite 70% share price rally past year, analysts have $47.22 average price target, seeing 4.4% upside for INTC
