Biden administration awards Intel up to $3 billion under the CHIPS Act

Biden administration awards Intel up to  billion under the CHIPS Act


Intel CEO Pat Gelsinger delivers a speech at Taipei Nangang Exhibition Center during Computex 2024, in Taipei on June 4, 2024. 

I-Hwa Cheng | AFP | Getty Images

The Biden administration on Monday awarded Intel up to an additional $3 billion under the CHIPS and Science Act for the “Secure Enclave” program, which is designed to expand the supply of microelectronics for the U.S. Department of Defense.

Shares of Intel jumped 8% in extended trading after the company announced it’s creating a separate entity for its foundry business, which could allow it to raise outside funding.

Intel is building foundry plants in four states as part of its project to increase domestic semiconductor manufacturing for other suppliers. In March, the Biden administration awarded Intel up to $8.5 billion under the CHIPS and Science Act. A senior government official told CNBC that disbursements are expected by the end of the year.

Intel CEO Pat Gelsinger, in a recent meeting with Commerce Secretary Gina Raimondo, voiced frustration over U.S. companies’ heavy reliance on Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker, CNBC reported Thursday.

The Secure Enclave program is the latest development in the relationship between Intel and the Department of Defense, which includes projects to build Rapid Assured Microelectronics Prototypes, or RAMPs, and State-of-the-Art Heterogeneous Integration Prototypes, or SHIPs.

Intel’s continued push for funding from the Biden administration reflects its mission “to fortify the domestic semiconductor supply chain and to ensure the United States maintains its leadership in advanced manufacturing, microelectronics systems, and process technology,” Chris George, president and general manager of Intel Federal, said in the press release.

Intel has lost 60% of its value this year as it struggles to find its way in the booming artificial intelligence market. The company announced in August it would cut 15% of its workforce as part of a $10 billion cost-reduction plan.

CNBC’s Seema Mody and Rohan Goswami contributed to this story.



Source

AI voice startup ElevenLabs pushes global expansion as it gears up for an IPO
Technology

AI voice startup ElevenLabs pushes global expansion as it gears up for an IPO

Founded in 2022, ElevenLabs is an AI voice generation startup based in London. It competes with the likes of Speechmatics and Hume AI. Sopa Images | Lightrocket | Getty Images LONDON — ElevenLabs, a London-based startup that specializes in generating synthetic voices through artificial intelligence, has revealed plans to be IPO-ready within five years. The […]

Read More
U.S. lifts chip software curbs on China amid trade truce, Synopsys says
Technology

U.S. lifts chip software curbs on China amid trade truce, Synopsys says

Synopsys logo is seen displayed on a smartphone with the flag of China in the background. Sopa Images | Lightrocket | Getty Images The U.S. government has rescinded its export restrictions on chip design software to China, U.S.-based Synopsys announced Thursday.  “Synopsys is working to restore access to the recently restricted products in China,” it […]

Read More
Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index
Technology

Datadog stock jumps 10% on tech company’s inclusion in S&P 500 index

The Datadog stand is being displayed on day one of the AWS Summit Seoul 2024 at the COEX Convention and Exhibition Center in Seoul, South Korea, on May 16, 2024. Chris Jung | Nurphoto | Getty Images Datadog shares were up 10% in extended trading on Wednesday after S&P Global said the monitoring software provider […]

Read More