Intel stands to win $3.5 billion to produce advanced chips for US military

The US government is poised to invest $3.5 billion in Intel Corp. so the chipmaker can produce advanced semiconductors for military and intelligence programmes, according to congressional aides.

The money, tucked into a fast-moving spending bill the House passed on Wednesday, would establish Intel as a dominant domestic player in the lucrative defence market.

The funding, which would run over three years, is for the “secure enclave” programme. It comes from a broader $39 billion Chips and Science Act grant pool that’s designed to convince chipmakers to produce semiconductors in the US. More than 600 companies have expressed interest in the funding.