The Pentagon has withdrawn its plan to allocate up to $2.5 billion in funding for a chip grant to Intel Corporation, a decision that led to Intel's stock ($INTC) falling in after-hours trading. This move shifts the responsibility to the Commerce Department to address the funding shortfall, with lawmakers directing the use of Chips Act funds to cover the gap. The original plan was part of a broader initiative to support the manufacturing of advanced defense and intelligence-related semiconductors, but its cancellation has introduced complications and sparked discussions on the future of semiconductor manufacturing support in the United States.