Intel has scored a much-needed victory, with the company winning up to a $3 billion CHIPS Act award for the Secure Enclave program.

Secure Enclave is designed to meet the Pentagon’s need for secure semiconductors. Intel has a long history of working with the Department of Defense, and the Secure Enclave program builds on previous work. The company points out that the Secure Enclave award is in addition to funds it was previously under the CHIPS Act.

Listen to a podcast conversation on Intel’s $3 billion CHIPS Act award. It’s a big deal!

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 also touts the award as a win for its Intel Foundry business, which the company just announced would become an independent subsidiary, in an effort to help it better compete.

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 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.”

Intel Foundry has faced major growing pains, costing Intel some $7 billion in 2023 and failing to secure high-profile contracts. Securing the Secure Enclave award could help Intel gain some much-needed momentum.