For those who came in late, the Commerce Department announced in March a proposal for the troubled chipmaker to receive $8.5 billion in grants for its commercial semiconductor projects in Arizona, New Mexico, Ohio, and Oregon under the law passed in 2022.

However, the New York Times reported, citing four sources, that the amount has been reduced to less than $8 billion.

According to multiple reports, Intel is expected to receive less grant funding than scheduled under the CHIPS and Science Act after receiving a $3 billion defence contract.

Reuters reportedly separately on Monday that Intel expects a "small reduction" in the award.

Both outlets said the adjustment was made after Intel won a $3 billion contract in September to supply semiconductors for the US military.

Intel declined to comment on the situation, but a spokesperson said the company is close to finalising its deal and will share details soon.

Chipzilla is expected to be the chief beneficiary of the tens of billions in taxpayer subsidies allocated under the bipartisan CHIPS Act passed two years ago.

But so far, the company has not received any funds as it worked to meet the government's requirements. Instead of creating the jobs promised under the policy, it has slashed its workforce by 15 per cent.

Intel's stock is down more than 47 per cent year to date. Shares were up more than two per cent in early afternoon trading on Monday, hovering around $25.