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

The government grant is less than originally expected because the chip giant is also receiving separate funding for defense-related projects.

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.

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 U.S. Commerce Department said Tuesday it was finalizing a $7.86 billion government subsidy for Intel , down from $8.5 billion announced in March after the California-based chips maker won a separate $3 billion award from the Pentagon.

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.

Intel secures billions in funding to revive US chipmaking. The investment will create thousands of jobs across multiple states. Intel's advanced chip production is underway. This strengthens US technology and supply chains.