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The Intel logo. Picture: REUTERS/DADO RUVIC
The Intel logo. Picture: REUTERS/DADO RUVIC

Washington — The Biden administration has awarded Intel up to $3bn to develop advanced semiconductors for a wide range of weapon systems and other national security products.

Shares of Intel were up 5.7% after the announcement.

The award pushes forward the administration’s commitment to reshore semiconductor manufacturing and advance cutting-edge technology research and development.

The administration’s focus on an initiative called “secure enclave” reflects a broader strategy to enhance national security through targeted investments in critical semiconductor manufacturing and technology development.

The secure enclave initiative aims to ensure a secure supply of microelectronics for defence requirements, aligning with the defence department’s enduring need for state-of-the-art, commercial, bespoke and classified microelectronics.

“Today’s announcement highlights our joint commitment with the US 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 GM of Intel Federal.

The Chips programme office at the commerce department is also negotiating a separate potential award for Intel under the Notice of Funding Award 1 for commercial fabrication facilities, a US official said. The department is conducting due diligence, and did not address this potential award.

Intel has a history of working with the defence department, having won a second-phase contract in a project aimed at helping the US military make more advanced semiconductors within the country in 2020.

In 2021, Intel was awarded a project to provide commercial foundry services for the first phase of the defence department’s multiphase programme called Rapid Assured Microelectronics Prototypes — Commercial.

Reuters 

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