Intel has officially qualified for up to $3.5 billion in federal grants to make semiconductors for the Pentagon, in a new article published by Bloomberg.
The site reports from the usual "people familiar with the matter" saying that Intel has reached a "binding agreement" with US officials that falls under a secretive program called "Secure Enclave". This project will start production for advanced chips that will be used by the US military and intelligence applications, spanning multiple states and including a manufacturing facility in Arizona.
Bloomberg adds that while Intel was always the frontrunner for this award, there has "been pushback by other chipmakers" and concern in Washington "about the wisdom of relying on one firm, and a funding fight across multiple agencies and Capitol Hill that threatened to cut into Intel's total award".
- Read more: Intel cancels its 20A process node for Arrow Lake, contracts TSMC to make most of the chip
- Read more: Intel CEO Pat Gelsinger to present plans to help the company at emergency board meeting
- Read more: Intel considering selling its foundry business, might scrap some of its factory projects too
- Read more: Intel's scrapped Beast Lake CPU rumored with 2x IPC over Raptor Lake, Pat Gelsinger killed it
- Read more: Intel shares TANK by over 30% after 15K+ job cuts announced, bleeding CPU market share to AMD
- Read more: Intel cuts 15% of its workforce after disastrous Q2: dying CPUs, bleeding market share to AMD
As for the funding, we should get an announcement as early as next week according to Bloomberg's sources. This new funding would add to the possible $8.5 billion in grants and $11 billion in loans that Intel was awarded back in March 2024 under the CHIPS and Science Act.
