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 Biden Administration announced it released $7.865 billion in funding for Intel as part of its CHIPS Incentives Program.

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

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.

After delays and lobbying from business groups around the country, the U.S. Department of Commerce and Intel announced a deal Tuesday morning to release nearly $8 billion in direct CHIPS Act funding.

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

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.