Intel Secures $3.5 Billion Grant for Pentagon Chip Production

The funding under the Secure Enclave program aims to bolster U.S. military and intelligence chip manufacturing domestically.

Intel has been awarded up to $3.5 billion in federal grants to produce advanced semiconductors for the Pentagon.
The Secure Enclave program focuses on creating cutting-edge chips for U.S. defense and intelligence applications, with production primarily based in Arizona.
This grant adds to the $8.5 billion in grants and $11 billion in loans Intel received under the CHIPS & Science Act earlier this year.
The program faced opposition from rival chipmakers and concerns in Washington about relying on a single company, but Intel emerged as the preferred choice.
The funding was delayed due to a dispute between the Pentagon and the Commerce Department, ultimately resulting in Commerce covering the full $3.5 billion.