The administration’s focus on enhancing semiconductor technology, especially for national security needs, continues to be a priority, ensuring that the U.S. remains at the forefront of this critical industry
The Biden administration on Monday awarded Intel Corp up to $3 billion under the CHIPS and Science Act to develop a “Secure Enclave” for microelectronics, which are critical components in a wide range of national security and defense systems. Following the announcement, Intel shares saw a 5.7 per cent rise.
This move underscores the administration’s commitment to reshoring semiconductor manufacturing and advancing research in cutting-edge technologies. The Secure Enclave initiative is a key part of a broader strategy aimed at bolstering national security by ensuring a reliable, secure supply of microelectronics for defense purposes. These components are essential for weapons systems and other sensitive national security applications.
“Today’s announcement highlights our joint commitment with the U.S. government to fortify the domestic semiconductor supply chain and to ensure the United States maintains its leadership in advanced manufacturing, microelectronics systems, and process technology,” said Chris George, president and general manager of Intel Federal.
The CHIPS Program Office within the Department of Commerce is also negotiating a separate potential award for Intel under the CHIPS Notice of Funding Opportunity (NOFO) 1, focused on commercial semiconductor fabrication facilities. However, a U.S. official noted that due diligence is still ongoing for this possible award, and no further details have been provided.
Intel has a longstanding relationship with the Department of Defense (DoD). In 2020, the company secured a second-phase contract to assist the U.S. military in producing more advanced semiconductors domestically. Additionally, in 2021, Intel was selected to provide commercial foundry services for the first phase of the DoD’s Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program, which is a multi-phase effort to enhance the U.S. military’s access to state-of-the-art microelectronics.
The administration’s focus on enhancing semiconductor technology, especially for national security needs, continues to be a priority, ensuring that the U.S. remains at the forefront of this critical industry.
