Intel Solidifies $3.5 Billion Deal to Make Chips for Military

  • Chipmaker has been struggling to bolster its factory business
  • Funding will support facilities in Arizona and other US states

The Pentagon building in Washington, DC. 

Source: AFP/Getty Images

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Intel Corp. has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the Pentagon, according to people familiar with the matter, after the chipmaker reached a binding agreement with US officials.

The secretive program, 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.