Intel has been granted $7.86 billion under the CHIPS and Science Act by the US government to support domestic semiconductor manufacturing. This funding is part of a larger effort to revive the local industry in light of Intel's challenges, including a $17 billion quarterly loss and a decline in market share.

CEO Patrick Gelsinger has acknowledged that Intel will not achieve its 2024 sales target of $500 million for its Gaudi AI accelerator, which comes as Nvidia surpasses Intel on the S&P Dow Jones Industrial Average. This highlights the global trend towards prioritizing domestic chip production, with Japan announcing a $60 billion support plan and South Korea committing $10 billion in loans to strengthen their semiconductor sectors.

The grant also includes a $3 billion contract with the Department of Defense.