Intel Corp. has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the Pentagon, said sources, after the chipmaker reached a binding agreement with US officials.
The secretive programme, called Secure Enclave, seeks to establish production for advanced chips with military and intelligence applications. It spans multiple states, including a manufacturing facility in Arizona, Bloomberg has reported.
Although Intel has always been the frontrunner for this award, there’s been pushback from other chipmakers, concern in Washington about the wisdom of relying on one firm, and a funding fight across multiple agencies and Capitol Hill that threatened to cut into Intel’s total award.
The funding could be announced as soon as next week, said the people, who asked not to be identified because the discussions are private.
It would add to a possible $8.5 billion in grants and $11 billion in loans that Intel was awarded in March under the Chips and Science Act, a law that President Joe Biden signed in 2022 to revitalise US semiconductor manufacturing and reduce reliance on Asia.
Intel is still negotiating the terms of that broader incentive package, which is intended to support facilities in Arizona, Ohio, New Mexico and Oregon.
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