The Biden-Harris Administration has awarded Intel up to $3 billion in direct funding for a project to supply domestically manufactured hardware for the US military.
The funding comes from the “Secure Enclave” program, part of the CHIPS and Science Act, which aims to shore up the domestic supply chain of semiconductors for national security applications.
Intel will provide the US Department of Defence with processors and collaborate with defence agencies to “help enhance the resilience of US technological systems by advancing secure, cutting-edge solutions.”
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“Intel is proud of our ongoing collaboration with the Department of Defence to help strengthen America’s defence and national security systems,” said Chris George, president and general manager of Intel Federal.
“Today’s announcement highlights our joint commitment with the US government to fortify the domestic semiconductor supply chain and to ensure the US maintains its leadership in advanced manufacturing, microelectronics systems, and process technology.”
The funds available through the Secure Enclave program are distinct from the funding agreement Intel secured earlier this year. The earlier deal allowed the company to receive up to $8.5 billion in direct funding and $11 billion in loans to build new chip plants on US soil.
The awarding was a welcome bit of good news for Intel amid a tumultuous time for the company, with share prices at all-time lows.
Leaders at semiconductor manufacturer are reportedly drafting a cost-cutting to try and turn its fortunes around, which could include selling some of its businesses — including Altera, its programmable logic device manufacturing unit.
Intel previously announced it would be laying off some 15% of its workforce to “resize and refocus.”
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