Intel is set to receive up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program from the U.S. government, which is $500 million less than the rumored number published earlier. This initiative aims to bolster the trusted production of advanced chips on Intel's 18A process technology for U.S. government use in intelligence and military applications.
The Secure Enclave program builds on Intel's previous collaborations with the Department of Defense (DoD), including the RAMP-C and SHIP projects. Intel's partnership with the DoD goes back to 2020 when it played a key role in the SHIP program by providing advanced semiconductor packaging. By 2023, Intel had delivered its first multi-chip prototypes, contributing to the DoD's efforts to access cutting-edge microelectronics and modernize its defense capabilities.
Additionally, Intel has been involved in the RAMP-C program since 2021, providing commercial foundry services to develop custom circuits for critical DoD systems. Over time, Intel has successfully onboarded several defense industry partners, including Boeing, Northrop Grumman, Microsoft, IBM, and Nvidia.
As the only U.S.-based company that both designs and manufactures advanced logic chips, Intel is crucial in ensuring the security of U.S. technological infrastructure. Through this partnership, Intel will also help the DoD enhance the resilience of vital systems with sophisticated chips made on its upcoming 18A (1.8nm-class) process technology. In fact, the award is proof that the U.S. government is confident of Intel's 18A process technology.
The Secure Enclave program is designed to manufacture advanced chips for defense and intelligence applications in the U.S. within highly secure environments. Ideally, this would take place in dedicated facilities, separate from the production of other components. However, due to the immense expense of constructing a separate cleanroom for military-grade chips (which account for 1% - 2% of revenue for foundries like Intel), Intel appears to have chosen an alternative approach to meet the security standards set by the Department of Defense.
This new award is separate from Intel's earlier agreement in March 2024 with the U.S. government, where it secured $8.5 billion in funding and $11 billion in loans for the construction and upgrading of its commercial semiconductor facilities. Both funding deals, however, are part of the broader CHIPS and Science Act aimed at revitalizing the U.S. semiconductor industry.
"Intel is proud of our ongoing collaboration with the U.S. Department of Defense to help strengthen America's defense and national security systems," said Chris George, president and general manager of Intel Federal. "Today's announcement highlights our joint commitment with the U.S. 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."
