Intel Stock Dips as U.S. Reconsiders CHIPS Act Funding

Intel shares edged lower Thursday after reports surfaced that the Biden administration is reevaluating portions of its CHIPS Act semiconductor subsidies. Commerce Secretary Howard Lutnick described some grants as "overly generous," with several being renegotiated. The development creates fresh uncertainty for Intel's $28 billion Ohio fab project, which has received $2.2 billion of its anticipated $7.865 billion in federal support.

The reassessment reflects growing fiscal scrutiny of industrial policy initiatives. Lutnick's blunt assessment—"the only deals not getting better are deals that should have never been done"—signals a hardening stance toward corporate subsidies. This comes as semiconductor firms navigate simultaneous pressures: massive capital expenditures for advanced manufacturing while adapting to shifting government priorities.