Intel Rises 3% as It Expects Reduced U.S. Grant After Winning Defense Contract
Reuters11-26
Nov 25 (Reuters) - Intel expects a small reduction from the $8.5 billion preliminary U.S. subsidies planned for the chipmaker, according to a person familiar with the matter.
The $8.5 billion in direct grants were part of a larger package of loan guarantees, tax incentives and other measures announced in March.
But in September, Intel also won a $3 billion contract with the U.S. Department of Defense. The funding for that contract ended up coming from the $39 billion that U.S. lawmakers allocated for chip subsidies rather than the Pentagon's budget, which led to a reduction in Intel's direct grant award, the person said.
Shares of Intel rose 3.55% in midday trading.
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