The Pentagon will give Intel a $3.5 billion federal grant to produce military chips under the secret Secure Enclave program, Bloomberg reports, citing sources.
According to them, the chips are planned to be used primarily for intelligence purposes and will be produced in several states, including Arizona.
Bloomberg notes that Intel was not the only candidate for this contract, and even in Washington there were concerns about the convenience of depending on a single company. The contract could be officially announced next week.
Following the start of the Russian military operation in Ukraine, the United States imposed sanctions against Moscow, including a ban on the export of dual-use goods to the country: microelectronics and semiconductors. At the same time, the United States began to increase sanctions pressure against Beijing. In October 2022, the US Department of Commerce introduced new rules limiting the supply of semiconductors and equipment for their production to China in order to prevent the country from using American technology to develop weapons.
Following this, major chip production equipment suppliers suspended sales and services to Chinese manufacturers. China responded by restricting exports of gallium and germanium, which are needed to make chips and semiconductors.
Russian and Chinese authorities criticize Western sanctions, calling them illegal. The Kremlin said that the sanctions pressure would not affect the goals of the Russian special operation in Ukraine, RBC recalls.
