Intel Secures $3.5B Military Deal, $3B CHIPS Act Funding, Expands AWS Partnership

Sep 16, 2024, 07:52 PM

Intel has secured a $3.5 billion deal to produce chips for the U.S. military under the Secure Enclave program, which focuses on advanced semiconductors for military and intelligence applications. This deal is part of Intel's broader strategy to boost U.S. chip production, supported by Commerce Secretary Gina Raimondo. In a recent meeting, Intel CEO Pat Gelsinger voiced frustration over the reliance on TSMC. Additionally, Intel has been awarded up to $3 billion in direct funding under the CHIPS and Science Act by the Biden-Harris administration to further develop the Secure Enclave program. In another significant development, Intel and Amazon Web Services (AWS) have announced an expanded multi-year, multi-billion-dollar partnership to co-invest in custom chip designs, including AI fabric chips on Intel 18A and custom Xeon 6 chips. Intel also plans to turn its foundry business into an independent subsidiary to raise external capital.