Joe Biden’s administration has finalized a deal that provides a $7.9 billion grant to Intel to build new chip factories in the United States. This will be the largest grant under the CHIPS Act, Bloomberg reports.

The company will receive at least $1 billion by the end of 2024. The funds will be allocated to three projects in Arizona, Oregon, and New Mexico. The new fab in Ohio, which Intel postponed from 2025 to the end of the decade, cannot yet claim any support from the government, despite the fact that Ohio has already allocated $2 billion.

Over the past few months, Intel has been trying to convince investors, Wall Street shareholders, and the U.S. government that the company is capable of a large-scale expansion of production despite financial difficulties. This is also an important step for the Joe Biden administration, as the next president, Donald Trump, was an opponent of the CHIPS Act.

Intel was initially supposed to receive $8.5 billion from the government, but due to the failure to meet its targets and difficulties within the company, the grant was reduced to $7.9 billion. In addition to this, the company will also receive $3 billion to produce chips for the US Army.

U.S. Secretary of Commerce Gina Raimondo noted that thanks to this grant, “for the first time in a very long time, American workers in the United States will be manufacturing and packaging American-designed chips.”

Raimondo was particularly responsible for getting the CHIPS Act, which aims to develop semiconductor manufacturing in the United States, passed in 2022. In total, this law will allocate $39 billion in grants, $75 billion in loans and loan guarantees, and provide 25% tax incentives.