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Key Takeaways
- Intel has reportedly won $3.5 billion in grants from the Pentagon to manufacture chips for the U.S. military.
- Bloomberg reported that Intel’s work will be part of the government’s Secure Enclave program, which aims to produce advanced chips with military and intelligence applications.
- The contract comes on top of the potential $8.5 billion in grants and $11 billion in loans that Intel was awarded earlier this year from the CHIPS and Science Act of 2022.
Shares of Intel (INTC) advanced Monday, aided by a report that the semiconductor maker received a multibillion-dollar award from the Pentagon to make chips for the U.S. military.
Bloomberg reported late Friday that Intel qualified for $3.5 billion in federal grants as part of the Secure Enclave program, which is designed to produce advanced chips for military and intelligence applications. According to people familiar with the matter, the announcement of the funding could come as early as this week.
Award Adds to Earlier US Grants, Loans
Bloomberg said the new contract comes on top of a potential $8.5 billion in grants and $11 billion in loans that Intel was awarded in March under the CHIPS and Science Act of 2022, which is aimed at revitalizing U.S. semiconductor manufacturing and limiting reliance on Asia. Intel didn’t immediately respond to Investopedia’s request for comment Monday.
Intel has struggled of late as rivals making artificial intelligence (AI) chips ate into its market share. Intel recently reported wider-than-anticipated losses, slashed jobs, and has watched its stock price tumble.
Intel’s stock, up more than 2% in recent trading, remains down more than 50% this year so far.
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