A source reports that Intel and the Commerce Department are near to finalizing an approximately $8 billion grant under the CHIPS Act.

• A person familiar with the matter reports that Intel and the Commerce Department are near to finalizing an approximately $8 billion grant to aid the struggling chipmaker.
• The grant will support Intel's chip manufacturing expansion.
• Recently, Intel has considered generating funds by disposing of its assets and has been the subject of a potential acquisition offer from Qualcomm.

The CHIPS Act Office and a chipmaker are near to finalizing an $8 billion grant deal, according to a source, as the Biden administration aims to distribute funds prior to President-elect Trump's inauguration.

The Commerce Department is expected to finalize the $8 billion awards for Intel's factory-building efforts in the coming weeks, said the person.

In September, Intel was awarded a $3 billion contract to produce chips for the Department of Defense, providing a rare positive outlook for the company's struggling fab business. The Commerce Department declined to provide any information on the matter, while Intel did not respond to a request for comment.

The two sides were close to finalizing the grant, as first reported by The Wall Street Journal.

Since the initial announcement of the grant, Intel's struggles have intensified, as reported by The New York Times, citing four sources. The government has decided to decrease the grant by approximately $500 million due to concerns about Intel's ability to fulfill its investment commitment and because of changes in its technology roadmap and customer demand.

Earlier this month, the U.S. granted $6.6 billion, increasing investor expectations that Intel would soon receive cash funding. Despite receiving tax breaks from the CHIPS Act, Intel has not yet received cash awards, which Intel CEO Pat Gelsinger has expressed disappointment about.

"Gelsinger expressed frustration in October, telling CNBC that the CHIPS Act grants haven't moved faster due to bureaucratic processes. He expressed eagerness to see the finished product."

The U.S. House Speaker Mike Johnson initially suggested repealing the bipartisan CHIPS Act, but later retracted his statement. The Biden administration and grant recipients have promoted the bill as a job generator.

This year, Intel's struggles have intensified, with the company reporting a nearly $17 billion loss in the last quarter and scaling back CEO Pat Gelsinger's global ambitions.

Earlier this year, Intel announced plans to cut 15,000 jobs through layoffs and voluntary buyouts. The company has been taking steps to separate its foundry business from its legacy business and has been working with advisors on activist defense and a broader strategic review. Additionally, Intel is seeking to raise cash through a minority stake in the Altera business and has been exploring potential acquirers for weeks.

An emerging company with a market cap that surpasses Intel's now faces the possibility of a takeover bid.

WATCH: We got a lot done this quarter, Intel CEO says