Intel receives up to $3 billion in damages under Chip Act | Real Time Headlines

The Biden administration awarded the Intel Under the Chip and Science Act, up to $3 billion in additional funding will be provided for the “Secure Enclave” program, which is designed to expand the U.S. Department of Defense’s microelectronics supply.

Intel shares rose 8% in after-hours trading company announced The company is creating a separate entity for its foundry business, which would allow it to raise outside funding.

Intel is building foundries in four states as part of its effort to increase domestic semiconductor manufacturing for other suppliers. In March, the Biden administration Grant Under the Chip and Science Act, Intel could receive up to $8.5 billion in funding. A senior administration official told CNBC that payments are expected to be released by the end of the year.

Intel CEO Pat Gelsinger during a recent meeting with the Commerce Secretary Gina Raimondoexpressing dismay at the heavy reliance on U.S. companies British Semiconductorthe world’s largest contract chip manufacturer.

The Secure Enclave program is the latest development in Intel’s relationship with the Department of Defense, which includes plans to build the Rapid Assurance Microelectronics Prototype (RAMP) and the state-of-the-art Heterogeneous Integrated Prototype (SHIP).

Chris George, Intel president and general manager, said Intel’s continued push for funding from the Biden administration reflects its mission to “strengthen the domestic semiconductor supply chain and ensure that the United States remains a leader in advanced manufacturing, microelectronic systems and process technologies.” stated in the press release.

Intel The company has lost 60% of its value this year as it struggles to find its way into the booming artificial intelligence market. company announced in august The company will lay off 15% of its workforce as part of a $10 billion cost-cutting plan.

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