Jane Edwards
Intel has signed an agreement with U.S. officials that could make it eligible for up to $3.5 billion in federal funding to produce semiconductors with military and intelligence applications for the Department of Defense as part of the Secure Enclave program, Bloomberg reported Friday.
Sources said the funding could be disclosed as soon as mid-September and could support the construction of chip manufacturing facilities in Arizona and other states.
In March, Intel received a U.S. government package that includes $11 billion in loans and $8.5 billion in grants as part of the CHIPS and Science Act to help the company expand its semiconductor factories in Arizona, Ohio, Oregon and New Mexico.
In 2022, President Joe Biden signed the CHIPS and Science Act into law to strengthen U.S. semiconductor production and reduce dependence on chips sourced from Asia.
According to the report, the Department of Commerce oversees the CHIPS Act grant program, which will also provide funding for the Secure Enclave program.
In November 2023, reports emerged that Intel could secure billions of dollars in Chips Act funding to build Secure Enclave facilities to manufacture chips that could power advanced weapons systems.
