The Silicon Valley company will receive less money from the CHIPS Act after winning a $3 billion military contract and changing some of its investment commitments.

Troubled chipmaker Intel, which announced huge layoffs in August, will receive $11 billion under the Chips Act, in an attempt to cut U.S. dependence on imports.

The U.S. government plans to reduce Intel Corp's preliminary $8.5 billion federal chips grant to less than $8 billion, the New York Times reported on Sunday citing unnamed sources. The change took into account a $3 billion contract Intel had been offered to make chips for the Pentagon,

The Biden administration is reducing its award to the chip maker, partly to account for a multibillion-dollar military contract.

The funding is lower than originally announced, but it still represents a much-needed win for Intel following a tough year.

The U.S. government is granting Intel up to $7.87 billion to help fund new chip plants in four states, the largest award in the Biden administration program aimed at reviving American chip-making.The funds are less than the $8.

The Biden administration has finalized a deal to give Intel Corp. nearly $7.9 billion in federal grants, the largest direct subsidy from a program to boost domestic semiconductor manufacturing.

The Biden administration is expected to trim the original $8.5 billion in grant funding to Intel from the CHIPS and Science Act, according to multiple reports.