The White House has ardently denied Intel's plan to boost semiconductor manufacturing in China as it may be detrimental to national security. Intel wishes to help resolve the chip supply problems that are affecting the US. However, the Biden administration aims to revitalise local manufacturing.
https://www.notebookcheck.net/US-government-halts-Intel-s-plan-to-bolster-chip-production-in-China.579196.0.html
"National Security" looool
So Intel asked for grants as an incentive to build facilities in the US, then asked for aid for increasing production in China. So really, they just wanted free money for no real reason, which was already pretty clear, but this just proves it. They really seem committed to destroying their image more and more.