If approved, funding will support sites in Texas and Missouri

First facility is expected to be operational in 2025

Department has signed a non-binding preliminary memorandum of terms with the company

Further extends program launched by department in 2023

Funding gap arose after Defense Department reneged on $2.5bn military contract with Intel

Investment will allow company to double production in two years

Secretary of Commerce Gina Raimondo was asked about consequences at a committee hearing

Move comes after US politicians were angered by Intel chips found in Huawei laptop

Ten research facilities and universities have acquired the sanctioned chips through domestic resellers

The facilities will be split across the cities of Taylor and Austin

Department of Commerce investigating alleged sanctions breach

Probe relates to inclusion of 7nm chips in Huawei Mate 60 Pro phone

Company is also a cloud provider in China