The Biden administration has allocated an additional $3 billion to Intel under the “Chips and Science Act” for the “Secure Enclave” project, aiming to expand microelectronics supply to the U.S. Department of Defense.
Microelectronics technology is a critical component of various weapon systems and other national security products. Following this announcement, Intel’s stock price briefly rose by 5.7%.
In 2022, the U.S. Congress approved the “Chips and Science Act,” providing $527 billion in research and production subsidies to increase domestic semiconductor output. Congress also approved a $750 billion government loan authorization.
The emphasis on the “Secure Enclave” project reflects a broader strategic focus of the U.S. government, aiming to enhance national security through targeted investment in critical semiconductor manufacturing and technology development.
The “Secure Enclave” project is designed to ensure secure supply of microelectronic products meeting defense requirements, in order to fulfill the Department of Defense’s enduring need for advanced, commercial, and customized confidential microelectronic products.
Chris George, President and General Manager of Intel Federal, a subsidiary of Intel, stated, “Today’s announcement highlights our shared commitment with the U.S. government to strengthen the domestic semiconductor supply chain, ensuring the U.S. maintains a leading position in advanced manufacturing, microelectronic systems, and process technology.”
Intel is establishing manufacturing plants in four states aimed at increasing domestic semiconductor production for other suppliers. In March of this year, the Biden administration provided Intel with up to $8.5 billion in subsidies under the “Chips and Science Act.”
During a recent meeting with Commerce Secretary Gina Raimondo, Intel CEO Pat Gelsinger expressed frustration over U.S. companies’ heavy reliance on the world’s largest contract chipmaker, TSMC.
Intel has a history of collaboration with the U.S. Department of Defense, winning a second-stage contract in 2020 aimed at assisting the U.S. military in domestic manufacturing of more advanced semiconductor projects.
In 2021, Intel secured a project to provide commercial foundry services for the first stage of a Department of Defense multi-stage project known as the Rapid Assured Microelectronics Prototypes-Commercial (RAMP-C).
(Note: This article is based on reports from Reuters and CNBC.)