Intel has posted big losses since the grant was announced, leading to spending cuts, mass layoffs and widespread doubts on its expensive expansion plan.

The U.S. government plans to reduce Intel Corp's preliminary $8.5 billion federal chips grant to less than $8 billion, the New York Times reported on Sunday citing unnamed sources. The change took into account a $3 billion contract Intel had been offered to make chips for the Pentagon,

The Biden administration is expected to trim the original $8.5 billion in grant funding to Intel from the CHIPS and Science Act, according to multiple reports.