Intel Secures $3.5 Billion in Grants to Produce Chips for U.S. Military

Intel Corp (INTC.O) has qualified for up to $3.5 billion in federal grants to manufacture semiconductors for the U.S. Department of Defense, according to Bloomberg News. The chipmaker reached a binding agreement with U.S. officials, positioning itself as a key player in strengthening national security through domestic chip production.

These grants are part of the U.S. government’s broader initiative to reduce reliance on foreign-made semiconductors, especially for critical military applications. As global supply chains face increasing uncertainty, securing a domestic chip manufacturing base has become a top priority for the U.S., and Intel’s agreement plays a central role in this strategy.

Intel’s efforts align with the Department of Defense’s goal of safeguarding the supply of advanced chips needed for military technologies, from communication systems to advanced weaponry. The $3.5 billion in funding will support Intel’s expansion of semiconductor production facilities in the U.S., ensuring the military has access to state-of-the-art chips.

The move is a significant milestone for Intel, which has been working to bolster its position in the semiconductor market, both commercially and within the defense sector. With this new agreement, Intel strengthens its partnership with the U.S. government while contributing to the nation’s technological and defense infrastructure.