U.S. semiconductor company Intel has become eligible to receive $3.5 billion (4.662 trillion KRW) in federal government subsidies to manufacture military-grade semiconductors for the U.S. Department of Defense.
On the 13th (local time), Bloomberg News reported that Intel had reached a binding agreement with U.S. officials, announcing this development.
This confidential project is called the ‘Secure Enclave’ and aims to produce advanced semiconductors for military and intelligence applications.
Bloomberg cited sources saying that a subsidy plan for Intel could be announced as early as next week.
Previously, under the CHIPS Act aimed at revitalizing the U.S. semiconductor industry and reducing dependence on Asian countries, Intel received $8.5 billion (11.322 trillion KRW) in subsidies and $11 billion (14.652 trillion KRW) in loans in March of this year.
With the new subsidy, Intel plans to establish production facilities in several states including Arizona, Ohio, Mexico, and Oregon. The terms of the subsidy are still under negotiation with the U.S. government.
However, Bloomberg reported that it remains unclear exactly which semiconductor models Intel will produce for the U.S. Department of Defense.
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