Originally, the Commerce Department was to contribute only $1 billion of the $3.5 billion earmarked for Intel’s development of advanced semiconductors for defense and intelligence purposes. This move aimed to establish Intel as the primary provider for the military and intelligence sectors.
The CHIPS Act, signed into law by President Biden in August 2022, signifies a $53 billion effort to enhance the U.S. economy’s resilience and security. It aims to rejuvenate semiconductor manufacturing within the nation, encouraging companies to localize their production processes. With the Pentagon’s recent decision, the anticipated funding structure and the future of Intel’s role as a specialized semiconductor supplier for defense applications are now under reconsideration.
