Intel has committed to producing advanced chips for military and intelligence applications under the Secure Enclave program, qualifying for around $3.5 billion in government subsidies. Bloomberg reported this, citing sources familiar with the matter. The Secure Enclave program aims to establish isolated production areas in several states, including fabs in Arizona, Ohio, New Mexico, and Oregon.
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The government funding could be publicly announced as soon as next week, according to sources. This would be in addition to a potential $8.5 billion in grants and $11 billion in loans awarded to Intel in March 2024 under the Chips and Science Act. This law, signed by President Joe Biden in 2022, aims to boost U.S. semiconductor manufacturing and reduce reliance on Asia.
Manufacturing Ambitions Are Being Reassessed
The chipmaker is actively reassessing its manufacturing goals, according to Bloomberg. While no final decisions have been made, Intel is more likely to delay or halt projects outside the U.S. than at its key sites in Arizona and Ohio, sources familiar with the matter have said.
Intel had previously announced an investment of 30 billion euros in a semiconductor factory in Magdeburg, with the federal government covering a third of this amount from tax revenue. The factory was intended to produce chips using a successor process to Intel 18A.
The 18A node is the first manufacturing process for which Intel’s contract foundry division anticipates strong interest from potential customers and high factory utilization. Intel plans to begin mass production at this state-of-the-art facility in 2025. Broadcom received its first 18A wafers from Intel in early September 2024 but was reportedly not satisfied with them. In September 2022, then-Intel Foundry Services President Randhir Thakur told EETimes that the Department of Defense would be given priority access to 18A node products.
