Intel has reportedly secured up to $3.5 billion in federal grants to produce advanced chips for the Pentagon under the Secure Enclave program, according to Bloomberg. The initiative aims to bring the production of cutting-edge processors for military applications back to the U.S. This funding is in addition to the $8.5 billion in grants and $11 billion in loans Intel received earlier this year under the CHIPS & Science Act. However, the information has not yet been officially confirmed.

Intel is currently the only U.S. company manufacturing chips on leading-edge nodes. Its most advanced process, 18A, is expected to enter mass production in 2025 and promises to be the most advanced manufacturing technology worldwide. The Secure Enclave program was created to ensure that the U.S. military and intelligence agencies have access to domestically produced, advanced chips, with Intel emerging as the clear frontrunner for this contract. The program spans multiple fabs and states, including Intel's Arizona facility, which houses the 18A-capable Fab 52 and Fab 62.

The Secure Enclave program focuses on producing chips for defense and intelligence purposes in secure environments, ideally in dedicated facilities isolated from other production lines. Due to the high costs associated with building separate cleanrooms for military-grade chips, Intel appears to have adopted an alternative method to meet the security requirements of the Department of Defense.

While the program primarily targets leading-edge chip production, it also covers a broader range of technologies, as highlighted by Bloomberg.