The Biden administration has awarded Intel up to $3.5 billion from the CHIPS and Science Act to develop a "Secure Enclave" for microelectronics crucial to U.S. defense systems. This move aims to bolster the domestic supply of advanced semiconductors critical to national security.
As the sole American company that both designs and manufactures leading-edge logic chips, Intel will collaborate with the Department of Defense to enhance the resilience of U.S. technological systems. The Secure Enclave initiative aims to ensure a reliable supply of cutting-edge microelectronics for military and intelligence purposes.
“Today’s announcement underscores our shared commitment with the U.S. government to strengthen the domestic semiconductor supply chain and maintain the nation’s leadership in advanced manufacturing,” said Chris George, president and general manager of Intel Federal.
The Secure Enclave program builds on Intel's existing collaborations with the Department of Defense (DoD), including projects like Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integration Prototype (SHIP). These initiatives aim to enhance the resilience of U.S. technological systems through secure, cutting-edge solutions.
N.B., this award is separate from the $8.5 billion in grants and $11 billion in loans that Intel was preliminarily awarded in March under the CHIPS Act for commercial fabrication facilities in Arizona, Ohio, New Mexico, and Oregon. The company is still negotiating the terms of that broader incentive package.
The Secure Enclave program reflects the Biden administration’s broader strategy to reinforce national security through targeted investments in critical semiconductor manufacturing. As geopolitical tensions rise and supply chain vulnerabilities become more apparent, this move aims to ensure a secure supply of microelectronics for a wide range of weapon systems and other national security products.
And, while the specific chip models to be produced for the Pentagon remain unclear, the agreement signals a significant step towards reducing reliance on foreign semiconductor manufacturers for sensitive military applications.
Intel’s involvement in the Secure Enclave comes amid a challenging period for the company, which has faced financial setbacks and is reevaluating its manufacturing ambitions. Despite these hurdles, the government is entrusting Intel to execute key defense projects due to its unique position as the only U.S. manufacturer of advanced processors.
The Pentagon will administer the award in coordination with the Department of Commerce. The funding covers appropriations for fiscal years 2024 and 2025, with an additional $500 million anticipated for fiscal year 2026.