Intel To Receive $3.5 Bn In Federal Grants For Pentagon Chip Production
The company has qualified for up to USD 3.5 billion in federal subsidies to manufacture semiconductors for the US Department of Defence
Bloomberg News reported on Friday that Intel Corp has formally qualified for up to USD 3.5 billion in federal subsidies to manufacture semiconductors for the US Department of Defence, citing people familiar with the subject, following a binding agreement with US officials.
The tech giant has received up to USD 3.5 billion in federal funds to produce sophisticated semiconductors for the Pentagon. The financing comes from the covert Secure Enclave program, which attempts to develop domestic production of chips for crucial military and intelligence uses.
The chipmaker has secured a contractual agreement with US regulators and will invest in an Arizona production plant as part of the initiative. This plant is intended to be critical in creating sophisticated semiconductors required for the Pentagon's diverse operations.
The Secure Enclave initiative is an important step towards assuring that the United States has a consistent supply of sophisticated chips for national security purposes. The scarcity of these chips has become a big issue in recent years, as they are required for a wide range of technology, from smartphones and laptops to automobiles and combat jets.
