Investing.com -- Intel Corporation (NASDAQ:INTC) shares rose 2% in premarket trading Monday following a CNBC report that the chipmaker was nearing a deal with the U.S. Commerce Department for a nearly $8 billion grant under the Chips Act, according to sources familiar with the matter.
The report further added that the Commerce Department was expected to finalize the awards in the coming weeks, with Intel’s grant earmarked for its factory-building initiatives.
The $52.7 billion Chips and Science Act, aimed to bolster domestic semiconductor production, includes $39 billion in subsidies for manufacturing and $11 billion for research and development.
Intel and the Commerce Department did not immediately respond to Investing.com’s request for comment.
The chipmaker’s stock has struggled this year as slowing demand in the PC market has weighed on its performance. In response, Intel has cut thousands of jobs, suspended its dividend, and sought government grants and contracts to support its manufacturing business, which has been losing money.