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 funding is lower than originally announced, but it still represents a much-needed win for Intel following a tough year.

Intel said it has finalized a deal with the White House to receive nearly $8 billion in federal funding to subsidize new chip manufacturing sites in the United States.