Pentagon Scraps Plan to Spend $2.5B on Intel Grant

"The Santa Clara-based chipmaker was the leading candidate to receive billions from Washington for facilities to manufacture chips for US military and intelligence applications, as The Register reported last year.

As recently as last week, it was widely expected that Intel was about to be given the nod to a total of $3.5 billion of funding, ultimately from the CHIPS Act pot, to setup a dedicated production line for military chips.

However the Pentagon got last minute cold feet and declined to stump up its $2.5 billion share of this funding for Intel, at least according to Bloomberg, which cited unnamed sources that do not wish to be identified."