Intel will finally get the much-awaited CHIPS Act award from the Biden Administration, but the amount is smaller than initially panned. In Tuesday trading, Intel stock retreated.

Intel will receive up to $7.86 billion in funding through the U.S. CHIPS and Science Act, the company announced Tuesday. The funding was roughly $600 million lower than the $8.5 billion award that Intel was expected to receive.

The funding will be used to "advance Intel's commercial semiconductor manufacturing and advanced packaging projects in Arizona, New Mexico, Ohio and Oregon," the company said.

Intel stock shed 3% to 24.13 in afternoon trade. The former Dow giant has been sliding all year. INTC stock is above its 50-day line, but below its 200-day,

Intel Chief Executive Pat Gelsinger in a statement cited "strong bipartisan support for restoring American technology and manufacturing leadership" that is "driving historic investments that are critical to the country's long-term economic growth and national security."

The CHIPS Act news followed a Bloomberg report, based on unnamed sources, that Qualcomm may no longer be interested in acquiring Intel.

Once the most dominant semiconductor company in tech, Intel has struggled to keep up with faster-moving rivals led by Nvidia (NVDA) and Advanced Micro Devices (AMD). They've outpaced the Santa Clara, Calif.-based tech behemoth, especially in AI.

But Intel got a boost last month when the semiconductor company posted a fourth-quarter outlook that was better than feared.

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