Intel (INTC) confirms $3 billion grant from Defense Department’s Chips Act

Intel Corp. said Monday that it was eligible for up to $3 billion in U.S. government funding to make chips for the military, confirming an earlier report by Bloomberg.

The project, called “Secure Enclave,” aims to ensure a steady supply of cutting-edge chips for defense and intelligence purposes. Lawmakers have allocated $3.5 billion for the program as part of the Chips and Science Act 2022, which aims to strengthen the American semiconductor industry and reduce dependence on Asia. The grant is separate from a potential $8.5 billion grant from the Chips Act that Intel is set to receive to support commercial factories in four U.S. states.