Intel Corporation has received up to $3.5 billion in government subsidies under the Secure Enclave plan to develop cutting-edge chips for the Pentagon. As part of broader efforts to reduce reliance on foreign producers, the proposal aims to produce military-grade semiconductors in many states, including Arizona.
This grant comes after earlier funding announcements for Intel, which the Chips and Science Act is expected to provide up to $8.5 billion in grants and $11 billion in loans for. This new initiative demonstrates the government’s continued faith in Intel despite its recent financial difficulties. For its larger incentive package, which includes plants in Oregon, New Mexico, and Ohio, Intel is currently negotiating the details.
The Pentagon’s choice of Intel, the only US manufacturer of advanced CPUs, is a reflection of its limited alternatives. Other semiconductor firms, including Samsung and Taiwan Semiconductor Manufacturing Co., have also profited from US help for facility building, even though they are still located outside.
Though the specific chip types used by the Pentagon are yet unknown, the Secure Enclave effort shows a significant US government commitment to bolstering the nation’s semiconductor industry. Intel is constantly looking for more contracts and has invited other tech companies to think about using its semiconductor facilities.