In September, Intel CEO Pat Gelsinger announced plans to spin off Intel Foundry, citing potential flexibility to secure independent funding.

Intel said on Wednesday its deal for $7.86 billion in U.S. government subsidies restricts the company's ability to sell stakes in its chipmaking unit if it becomes an independent entity. The U.S. Commerce Department announced the subsidy to Intel on Tuesday,

To build or expand semiconductor factories in several U.S. states.

The money will be split among Intel projects in Arizona, Oregon, Ohio and New Mexico, but with Arizona receiving about half of the total at $3.94 billion. The Arizona funding will support the construction of two new factories or fabs in Chandler and the modernization of a third fab there.

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

Donald Trump has criticized the CHIPS Act and suggested he'd prefer tariffs to incentivize semiconductor manufacturing on US soil.

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.