Intel to get up to $3 billion in grants for making chips for the Department of Defence

Intel is set to receive funding of up to $3 billion from the U.S. government under the 'Secure Enclave' program. The program, which is an initiative by the Biden-Harris administration, is aimed at making sure there's a steady supply of advanced semiconductors for the U.S. government's defense and intelligence use.

This funding is different from the CHIPS and Science Act, which is more focused on supporting the construction and modernization of semiconductor fabs. The chips made for the Secure Enclave program, however, are likely to be made in separate facilities that are isolated from the production of other components.

Although the Department of Commerce is still responsible for granting the funds under the CHIPS and Science Act, the Secure Enclave will be handled by the Department of Defense (DoD) to ensure a domestic supply chain of advanced semiconductors fully purposed for national security.

Chris George, Intel Federal's president and general manager, said:

“Intel is proud of our ongoing collaboration with the U.S. Department of Defense to help strengthen America’s defense and national security systems. Today’s announcement highlights our joint commitment with the U.S. government to fortify the domestic semiconductor supply chain and to ensure the United States maintains its leadership in advanced manufacturing, microelectronics systems, and process technology.”

Intel is currently the only company to benefit from the Secure Enclave program, as government officials in the U.S. are keen to get advanced semiconductors from an American supplier since they're meant for national security interests.

Although Intel is still struggling with its finances, as evident from its mass layoffs of 15,000 employees, it's making huge efforts to ensure that it gets back on its feet. Recently, the company announced that its foundry business will become an independent subsidiary. The change is said to give external foundry customers a "clearer separation from the rest of Intel."

via Bloomberg (paywall)