Intel Awarded up to $3B by the Biden-Harris Administration for Secure Enclave

Rhea-AI Summary

Intel has been awarded up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program. This initiative aims to expand trusted manufacturing of leading-edge semiconductors for the U.S. government, building on previous collaborations with the Department of Defense (DoD). As the only American company designing and manufacturing leading-edge logic chips, Intel will help secure the domestic chip supply chain and enhance U.S. technological resilience.

The award is separate from Intel's proposed funding agreement in March 2023 for semiconductor facility construction. Intel Foundry is advancing its Intel 18A technology, set for production in 2025. The company has made significant progress in DoD projects like SHIP and RAMP-C, delivering multi-chip package prototypes and onboarding defense industrial base customers including Boeing, Northrop Grumman, and Microsoft.

Positive

• Awarded up to $3 billion in funding for the Secure Enclave program
• Intel 18A technology on track for production in 2025
• Successful delivery of first multi-chip package prototypes under SHIP program
• Onboarded several defense industrial base customers for RAMP-C program

Negative

• None.

Insights

Financial Analyst

The $3 billion award to Intel under the CHIPS Act is a significant boost to the company's financials and strategic position. This funding, dedicated to the Secure Enclave program, strengthens Intel's role in the U.S. semiconductor industry and national security infrastructure. The investment will likely enhance Intel's competitive edge in advanced chip manufacturing, potentially leading to increased market share and revenue streams from government contracts.

Investors should note that this award is separate from the previously announced CHIPS Act funding for commercial fab construction. The combination of these investments positions Intel favorably for long-term growth in both commercial and government sectors. The company's progress in advanced packaging technologies and the Intel 18A process, slated for 2025 production, further reinforces its technological leadership. This multi-faceted government support could significantly impact Intel's stock performance and long-term valuation.

Tech Expert

Intel's Secure Enclave program represents a important advancement in semiconductor security for defense applications. The $3 billion investment will likely accelerate the development of cutting-edge, secure chip manufacturing processes. This initiative builds upon Intel's existing SHIP and RAMP-C programs, creating a comprehensive ecosystem for secure chip design and production.

The focus on 18A technology, set for 2025 production, puts Intel at the forefront of semiconductor innovation. This could lead to breakthroughs in chip performance, power efficiency and security features. The collaboration with major defense contractors and tech giants for the RAMP-C program also suggests a growing ecosystem around Intel's foundry services, potentially establishing Intel as a key player in the foundry market, competing more effectively with TSMC and Samsung.

Defense Industry Analyst

The Secure Enclave program significantly enhances the U.S. government's access to advanced, secure semiconductor technologies. This $3 billion investment in Intel not only strengthens national security but also reduces dependence on foreign chip manufacturers for critical defense systems. The program's integration with existing initiatives like SHIP and RAMP-C creates a comprehensive approach to securing the semiconductor supply chain for defense applications.

Intel's success in delivering multi-chip package prototypes under the SHIP program and onboarding major defense contractors for RAMP-C demonstrates the company's growing influence in the defense sector. This could lead to a long-term shift in defense procurement strategies, favoring domestic chip production and potentially reshaping the landscape of the defense technology industry. Investors should watch for increased defense-related revenue and potential spin-off technologies that could enter the commercial market.

Secure Enclave award builds on Intel’s programmatic engagement across strategic U.S. government defense programs, including SHIP and RAMP-C.

SANTA CLARA, Calif.--(BUSINESS WIRE)-- The Biden-Harris Administration announced today that Intel Corporation has been awarded up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program. The program is designed to expand the trusted manufacturing of leading-edge semiconductors for the U.S. government.

The Secure Enclave program builds on previous projects between Intel and the Department of Defense (DoD) such as Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integration Prototype (SHIP). As the only American company that both designs and manufactures leading-edge logic chips, Intel will help secure the domestic chip supply chain and collaborate with the DoD to help enhance the resilience of U.S. technological systems by advancing secure, cutting-edge solutions.

The Secure Enclave award is separate from the proposed funding agreement that Intel reached with the Biden-Harris Administration in March of this year to support the construction and modernization of semiconductor commercial fabrication facilities under the CHIPS and Science Act.

“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.”

Today’s announcement reflects the continued progress of Intel Foundry, which brings together all the components customers need to design and manufacture chips at the leading edge. Intel Foundry is nearing completion of a historic pace of design and process technology innovation with its most advanced technology – Intel 18A – on track for production in 2025. The company, which develops and produces many of the world’s most advanced chips and semiconductor packaging technologies, is advancing critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio and Oregon.

Intel has a long-standing history of working closely with the Department of Defense. In 2020, Intel was awarded the second phase of the SHIP program, allowing the U.S. government to access Intel’s advanced semiconductor packaging capabilities in Arizona and Oregon and leverage Intel’s substantial annual R&D and manufacturing investments. In 2023, Intel successfully delivered the first multi-chip package prototypes under the SHIP program, a major achievement in ensuring access to cutting-edge microelectronics packaging and paving the way for modernization for the DoD.

In 2021, Intel was awarded an agreement to provide commercial foundry services for multiple phases of the DoD’s RAMP-C program, which aims to leverage U.S.-based commercial semiconductor foundries to produce custom and integrated circuits for critical DoD systems. Since then, Intel has successfully onboarded several defense industrial base (DIB) customers, including Boeing, Northrop Grumman, Microsoft, IBM, Nvidia and others, and has made progress in developing early DIB product prototypes. This progress showcases the readiness of Intel’s 18A process technology, intellectual property and ecosystem solutions for high-volume manufacturing.

Forward-Looking Statements

This release contains forward-looking statements, including with respect to Intel’s foundry expectations, role in the U.S. domestic chip supply chain, collaboration with the DoD and expectations as to the readiness and commercial production of its Intel 18A process technology, that involve many risks and uncertainties that could cause our actual results to differ materially from those expressed or implied, including those associated with: the high level of competition and rapid technological change in our industry; the significant long-term and inherently risky investments we are making in R&D and manufacturing facilities that may not realize a favorable return; the complexities and uncertainties in developing and implementing new semiconductor products and manufacturing process technologies; our ability to time and scale our capital investments appropriately and successfully secure favorable alternative financing arrangements and government grants; and other risks and uncertainties described in our 2023 Form 10-K and other filings with the SEC. All information in this release reflects management's expectations as of the date of this release, unless an earlier date is specified. We do not undertake, and expressly disclaim any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

About Intel

Intel (Nasdaq: INTC) is an industry leader, creating world-changing technology that enables global progress and enriches lives. Inspired by Moore’s Law, we continuously work to advance the design and manufacturing of semiconductors to help address our customers’ greatest challenges. By embedding intelligence in the cloud, network, edge and every kind of computing device, we unleash the potential of data to transform business and society for the better. To learn more about Intel’s innovations, go to newsroom.intel.com and intel.com.

© Intel Corporation. Intel, the Intel logo and other Intel marks are trademarks of Intel Corporation or its subsidiaries. Other names and brands may be claimed as the property of others.

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Sarah Keller

+1 (202) 297-7285

sarah.keller@intel.com

Source: Intel Corporation

FAQ

What is the value of Intel's (INTC) Secure Enclave program award?

Intel (INTC) has been awarded up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program.

When is Intel's (INTC) 18A technology expected to enter production?

Intel's (INTC) most advanced technology, Intel 18A, is on track for production in 2025.

Which major companies has Intel (INTC) onboarded for the RAMP-C program?

Intel (INTC) has onboarded several defense industrial base customers for the RAMP-C program, including Boeing, Northrop Grumman, Microsoft, IBM, and Nvidia.

What recent achievement has Intel (INTC) made in the SHIP program?

In 2023, Intel (INTC) successfully delivered the first multi-chip package prototypes under the SHIP program, a major achievement in ensuring access to cutting-edge microelectronics packaging for the DoD.