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 U.S. Department of Commerce today confirmed it has awarded $7.865 billion to chip giant Intel under the CHIPS and Science Act.

The Biden administration has finalized a deal to give Intel Corp. nearly $7.9 billion in federal grants, the largest direct subsidy from a program to boost domestic semiconductor manufacturing.

The Biden administration is giving Intel $7.865 billion in CHIPS Act funding to boost domestic semiconductor manufacturing in the US. The agreement confirmed by the US Department of Commerce today is the largest award granted under the CHIPS Act to date, though notably smaller than the up to $8.5 billion earmarked for the chip maker in March.

Troubled chipmaker Intel, which announced huge layoffs in August, will receive $11 billion under the Chips Act, in an attempt to cut U.S. dependence on imports.

Donald Trump has previously criticized the CHIPS Act and suggested he would prefer tariffs to incentivize semiconductor manufacturing on US soil.

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.

The agreement funds projects in Arizona, Oregon, and New Mexico, crucial for the Biden administration’s semiconductor goals and Intel’s recovery.

The Commerce Department calls it a “huge step” in strengthening the U.S. chip supply chain. Earlier this year, it had proposed up to $8.5 billion in grants to Intel.

Key Takeaways Intel and the Biden administration have agreed to terms for the chipmaker to receive up to $7.86 billion in CHIPS Act funding.The funding will support the expansion or building of new facilities across Arizona,