Intel Secures $3.5 Billion in Federal Grants for Pentagon Chip Production under Secure Enclave

Sep 13, 2024, 10:37 PM

Intel has secured up to $3.5 billion in federal grants to produce advanced semiconductors for the Pentagon under the Secure Enclave program. This initiative is part of a broader effort to bolster U.S. chip production amid geopolitical risks, particularly concerning Taiwan. Commerce Secretary Gina Raimondo has been actively supporting Intel, advocating for U.S. foundries and encouraging companies like Nvidia to use domestic chip foundry services. Intel CEO Pat Gelsinger has expressed frustration over the heavy reliance on TSMC, the world's largest contract chipmaker. The $3.5 billion deal, qualified on September 13, is separate from an $8.5 billion Chips Act award that Intel is still negotiating.