Intel is officially entitled to as much as $3.5 billion in federal subsidies to make semiconductors for the Pentagon, according to insiders. The chipmaker has signed a binding agreement with U.S. officials.
The secretive program, called Secure Enclave, seeks to set up production of advanced chips with military and intelligence applications. It spans multiple states, including a production facility in Arizona, Bloomberg reported.
Intel has always been the frontrunner for this price, but other chipmakers are opposed. There are also concerns in Washington about whether it is wise to rely on one company. In addition, there is a battle over funding between various agencies and Capitol Hill, which threatens to jeopardize the total price Intel gets.
