Intel Confirms $3 Billion Pentagon Chips Grant; Shares Gain

  • US allocated a total $3.5 billion for military chips program
  • Award is on top of $8.5 billion grant for commercial fabs

Intel headquarters in Santa Clara, California.

Photographer: David Paul Morris/Bloomberg
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Intel Corp. said on Monday that it’s eligible to receive as much as $3 billion in US government funding to manufacture chips for the military, confirming earlier reporting by Bloomberg.

The effort, called the Secure Enclave, aims to establish a steady supply of cutting-edge chips for defense and intelligence purposes. The award is separate from a possible $8.5 billion grant from the 2022 Chips and Science Act that would support Intel’s commercial factories across four US states. In a separate statement Monday, Intel said that those projects continue to make progress.