Intel qualifies for $3.5 billion grants to make chips for US military
The funding would add to a possible USD 8.5 billion in grants and USD 11 billion in loans that the company was awarded in March under the Chips and Science Act
Intel has officially qualified for USD 3.5 billion in federal grants to make chips for the Pentagon, according to a report by Bloomberg.
The secretive program, called Secure Enclave, will lead to the production of advanced chips used for defense and intelligence purposes.
The project includes a manufacturing unit in Arizona, according to the report.
The funding would add to a possible USD 8.5 billion in grants and USD 11 billion in loans that the company was awarded in March under the Chips and Science Act, but comes amid concern in Washington about the wisdom of relying on a single firm for such projects.
The chipmaker is still negotiating the terms of that broader package, which is expected to support facilities in Arizona, Ohio, New Mexico and Oregon. Intel has yet to receive any money, and its award is still in a preliminary stage.
Pentagon officials seek cutting-edge chips from American firms, and currently, Intel is the only US maker of such processors.
A recent report from the National Academies of Sciences, Engineering and Medicine found that companies involved in a ‘trusted’ foundry program, an older effort similar to Secure Enclave, often find it challenging to meet Defense Department requirements or generate an ROI from those orders, the Bloomberg report said.
