Intel and the U.S. government will likely finalise $8.5 billion in direct funding for the chipmaker before the end of the year, the Financial Times reported on Friday, citing people familiar with the discussions.

In March 2024, the Biden Administration and Intel signed a preliminary memorandum of terms (PMT) for the $8.5 billion funding. This support package is part of Intel’s larger commitment to invest more than $100 billion in expanding its US manufacturing footprint, including building new chip plants in Arizona, Ohio, Oregon, and New Mexico.

Chipmaker is seeking ways to shore up its business although potential takeover approaches could complicate talks