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.

The U.S. Department of Commerce announced that it will make a final award to Intel Corp. of up to nearly $7.87 billion in direct funding under the CHIPS and Science Act, the largest such grant to any company but slightly below the preliminary $8.5 billion that had been announced earlier.

Intel and the Biden administration have finalized terms to an agreement that will see the chipmaker receive up to $7.86 billion in CHIPS Act funding, down from the originally announced $8.5 billion preliminary agreement in March.