Intel is the leading contender to bag a multi-billion-dollar contract from the US government to build a “secure enclave” that produces microchips for the military
The funding would be part of the Chips and Science Act, which President Biden signed into law last year, clearing the path for nearly $53 billion of investment in US semiconductor manufacturing, research, and development
The deal is still in the negotiation stage, and nothing has been finalized as yet
The new manufacturing facility could come up at Intel’s existing factory complex in Arizona, and could cost between $3 billion and $4 billion
The funds are expected to come from the $39 billion earmarked as manufacturing grants and subsidies under the Chips Act, which was enacted to reduce the country’s dependence on imported hardware
The vast majority of imported microchips for US military applications comes from Taiwan, which is currently under threat of being invaded by China
The new facility will produce microchips for the military, and will be designated as a “secure enclave,” indicating that chips for the military might be made on a separate production line with restricted access
The move is motivated by security concerns, as the US military is increasingly relying on advanced microchips for its operations
The new facility will help reduce the country’s dependence on imported hardware and ensure that the US military has access to chips produced in America