The Biden Administration has awarded Intel Corp up to $3 billion through the CHIPS and Science Act to develop a "Secure Enclave" for microelectronics, a critical component in various weapon systems and national security technologies. Intel’s shares rose by 5.7% following the announcement.
This grant underscores the administration's efforts to revitalize domestic semiconductor manufacturing and advance cutting-edge technology research.
The Secure Enclave initiative aims to secure a reliable supply of microelectronics for defense, aligning with the Department of Defense's need for commercial, bespoke, and classified microelectronics.
Additionally, the Department of Commerce is negotiating a separate potential award for Intel under the CHIPS Notice of Funding Opportunity 1 for commercial fabrication facilities. The department is conducting due diligence on this award.
Intel has a history of working with the DoD, having secured a second-phase contract in 2020 to assist the U.S. military in producing more advanced semiconductors. In 2021, Intel also won a project to provide foundry services for the DoD's Rapid Assured Microelectronics Prototypes - Commercial program.