[News] Intel Closer to Secure USD 3.5 Billion Investment from US Government for Chip Manufacturing in Military and Intelligence Applications

2024-03-08 Semiconductors editor

As per the report from Bloomberg, the US government is set to invest USD 3.5 billion in Intel to enhance the production capacity of advanced chips for military and intelligence purposes. Reportedly, the move is potentially positioning Intel as a leading semiconductor provider in the defense market.

Under the US government’s RAMP-C initiative, numerous companies, including IBM, Microsoft, and NVIDIA, are developing chips for the US military. Stu Pann, Intel’s head of foundry, recently stated in an interview with Tom’s Hardware that the company has signed a USD 1 billion contract with the US government and the Department of Defense.

According to the same report from Tom’s Hardware, this funding could be part of the total appropriation of USD 39 billion under the CHIPS and Science Act or may stem from the proposed Secure Enclave program specifically designed for military and intelligence chips. In any case, it will strengthen Intel’s position as a leading manufacturer in the defense market.

As the new funding announcement emerges, the U.S. Department of Commerce is also poised to invest billions of dollars in leading chip manufacturers like Intel, Micron, Samsung, and others, aiming to enhance local semiconductor manufacturing capabilities.

The U.S. government enacted the “Chip Act” in 2022. For now, only three American companies currently benefiting from the subsidies, including BAE Systems, GlobalFoundries, and Microchip Technology.

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(Photo credit: Intel)

Please note that this article cites information from Bloomberg and Tom’s Hardware.