Intel receives up to $3 billion in damages under CHIPS Act | Wilnesh News

The Biden administration awarded the Intel Under the Chip and Science Act, up to $3 billion in additional funding will be provided for the “Secure Enclave” program, which is designed to expand the U.S. Department of Defense’s microelectronics supply.

Intel shares rose 8% in after-hours trading after the company announced the creation of a separate entity for its foundry business to raise external funding.

Intel is building foundries in four states as part of its effort to increase domestic semiconductor manufacturing for other suppliers. In March, the Biden administration awarded Intel up to $8.5 billion in funding under the Chip and Science Act. A senior administration official told CNBC that payments are expected to be released by the end of the year.

Intel CEO Pat Gelsinger expressed frustration with U.S. companies’ heavy reliance on TSMC, the world’s largest chip foundry, during a recent meeting with Commerce Secretary Gina Raimondo, CNBC reported on Thursday. .

The Secure Enclave program is the latest development in Intel’s relationship with the Department of Defense, which includes projects to build the Rapid Assurance Microelectronics Prototype (RAMP) and the state-of-the-art heterogeneous integrated prototype (SHIP).

Chris George, Intel president and general manager, said Intel’s continued push for funding from the Biden administration reflects its “strengthening of the domestic semiconductor supply chain to ensure that the United States remains a leader in advanced manufacturing, microelectronic systems and process technology.” mission. the federation said in a news release.

Intel has lost 60% of its market value this year as it struggles in the booming artificial intelligence market. The company announced in August that it would cut 15% of its workforce as part of a $10 billion cost-cutting plan.

— CNBC’s Seema Mody and Rohan Goswami contributed to this article.