Intel Secures Up to $3 Billion in CHIPS Act Funding for Advanced Packaging Facility

Intel awarded up to $3 billion boost for chip-making: How it is different from previous $8.5 billion grant - Times of India

Intel has been awarded up to $3 billion by the Biden-Harris administration to make chips in the US. The funding has been awarded under the CHIPS and Science Act for the Secure Enclave program, which is designed to expand the manufacturing of semiconductors for the US government's defence programs. "Intel is proud of our ongoing collaboration with the US Department of Defense to help strengthen America's defence and national security systems," said Chris George, president and general manager of Intel Federal. The Secure Enclave program builds on previous projects between Intel and the Department of Defense (DoD) such as Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) and State-of-the-Art Heterogeneous Integration Prototype (SHIP), the chimaker added. How this is different from $8.5 billion funding in March Intel clarified that the Secure Enclave award is separate from the proposed $8.5 billion funding agreement that Intel reached with the US government in March. That funding will be used to support the construction and modernisation of semiconductor commercial fabrication facilities under the CHIPS and Science Act. The company also said that Intel Foundry is nearing completion of its design and process technology innovation - Intel 18A. The chips will be produced in 2025. The company is also advancing critical semiconductor manufacturing and research and development projects at its sites in Arizona, New Mexico, Ohio and Oregon. Intel launches Lunar Lake chips for laptops Intel recently launched the Intel Core Ultra (Series 2) 200V series AI processors for thin and light laptops. These chips, codenamed Lunar Lake, will take on Qualcomm's Snapdragon X Elite platforms and are claimed to be its most efficient family of x86 processors ever. Intel claims that the laptops powered by these processors - that will hit the shelves on September 24 - can deliver up to 20 hours of battery life on a single charge. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Biden administration awards Intel up to $3 billion under the Chips Act

Intel CEO Pat Gelsinger delivers a speech at Taipei Nangang Exhibition Center during Computex 2024, in Taipei on June 4, 2024. The Biden Administration on Monday awarded Intel up to an additional $3 billion under the CHIPS and Science Act for the "Secure Enclave" program which is designed to expand the supply of microelectronics for the U.S. Department of Defense. Shares of Intel jumped 8% in extended trading after the company announced it's creating a separate entity for its foundry business, which could allow it to raise outside funding. Intel is building foundry plants in four states as part of its project to increase domestic semiconductor manufacturing for other suppliers. In March, the Biden administration awarded Intel with up to $8.5 billion under the CHIPS and Science Act. A senior government official told CNBC that disbursements are expected by the end of the year. Intel CEO Pat Gelsinger, in a recent meeting with Commerce Secretary Gina Raimondo, voiced frustration over the heavy reliance that U.S. companies have on Taiwan Semiconductor Manufacturing, the world's largest contract chipmaker. The "Secure Enclave" program is the latest development in the relationship between Intel and the Department of Defense, which includes projects to build Rapid Assured Microelectronics Prototypes (RAMP) and State-of-the-Art Heterogeneous Integration Prototypes (SHIP). Intel's continued push for funding from the Biden administration reflects its mission "to fortify the domestic semiconductor supply chain and to ensure the United States maintains its leadership in advanced manufacturing, microelectronics systems, and process technology," Chris George, president and general manager of Intel Federal, said in the press release. Intel has lost 60% of its value this year as it struggles to find its way in the booming artificial intelligence market. The company announced in August it would cut 15% of its workforce as part of a $10 billion cost-reduction plan.

Intel secures $3 billion for chip security program By Investing.com

SANTA CLARA, Calif. - Intel Corporation (NASDAQ:INTC) has been awarded up to $3 billion in funding from the U.S. government under the CHIPS and Science Act for its Secure Enclave program, aimed at expanding trusted semiconductor manufacturing for national defense purposes. This initiative is a continuation of Intel's engagement with strategic defense programs, including its previous collaborations with the Department of Defense (DoD) on projects like RAMP-C and SHIP. The Secure Enclave program is designed to advance secure, state-of-the-art solutions and bolster the resilience of U.S. technological systems. Intel, unique as an American company that both designs and manufactures advanced logic chips, will play a vital role in securing the domestic semiconductor supply chain through this program. This program is distinct from the funding agreement reached in March for the construction and modernization of commercial semiconductor fabrication facilities. Chris George, president and general manager of Intel Federal, emphasized the importance of the partnership between Intel and the U.S. government, stating that the announcement underscores their joint commitment to strengthening America's semiconductor supply chain and ensuring the nation's leadership in advanced manufacturing and microelectronics systems. Intel Foundry is nearing the completion of significant design and process technology innovation, with its most advanced technology, Intel 18A, expected to begin production in 2025. The company has been advancing semiconductor manufacturing and research and development projects across its sites in Arizona, New Mexico, Ohio, and Oregon. The company's history of collaboration with the DoD includes delivering the first multi-chip package prototypes under the SHIP program in 2023, marking a significant step in providing access to advanced semiconductor packaging. Furthermore, under the RAMP-C program, Intel has been providing commercial foundry services, successfully onboarding defense customers, and developing early product prototypes. Intel's progress with its 18A process technology and ecosystem solutions demonstrates its readiness for high-volume manufacturing and the company's ongoing contributions to the defense industrial base. The information in this article is based on a press release statement from Intel Corporation. In other recent news, Intel Corp has secured eligibility for up to $3.5 billion in federal grants aimed at producing semiconductors for the U.S. Department of Defense. This agreement is expected to positively impact Intel's operations, potentially leading to increased production capacity and technological innovation within the company's semiconductor manufacturing processes. Meanwhile, Mobileye, a leader in autonomous driving technologies, announced it will cease internal development of next-generation frequency modulated continuous wave (FMCW) lidars, a component previously considered crucial for autonomous and highly automated driving systems. This strategic shift will not affect any existing customer product programs or the general product development pipeline. In other developments, Qualcomm (NASDAQ:QCOM) Inc. is reportedly considering the acquisition of specific segments of Intel, including its client PC design business, to enhance its product offerings. This comes as Intel faces financial challenges, marked by a significant second-quarter downturn and an 8% decline in revenue from its PC client business. Furthermore, Intel, along with other major semiconductor firms, has been summoned to testify before the U.S. Senate Permanent Subcommittee on Investigations regarding the use of American-manufactured semiconductors in Russian weaponry used in the Ukraine conflict. Lastly, Intel unveiled its Intel Core Ultra 200V series processors, designed for AI-enhanced consumer laptops. These processors promise exceptional performance, power efficiency, and significant advancements in graphics and AI compute capabilities. Despite these recent developments, analysts from Northland maintain an Outperform rating on Intel, while KeyBanc has revised Intel's future earnings per share forecasts downward. As Intel Corporation secures a substantial government investment for its Secure Enclave program, its financial metrics and market performance provide additional context for investors interested in the company's prospects. According to recent data from InvestingPro, Intel's Market Cap stands at $87.62 billion, reflecting its significant presence in the semiconductor industry. Intel's Price-to-Earnings (P/E) Ratio is currently at 87.74, which indicates a high valuation relative to its current earnings. However, when considering the company's near-term earnings growth, Intel is trading at a low P/E ratio, as highlighted by one of the InvestingPro Tips. This suggests that investors may see value in Intel's future growth prospects, despite a potential drop in net income expected this year. Additionally, the company's Price/Book ratio as of the last twelve months leading up to Q2 2024 is at 0.75, which could be appealing to value investors looking for assets priced below their intrinsic value. InvestingPro Tips for Intel also include a note on the company's robust history of dividend payments, having maintained them for 33 consecutive years. This consistency in returning value to shareholders may offer some reassurance amidst recent stock price declines, with the stock having taken a significant hit over the last six months, showing a price total return of -53.41%. For those considering a deeper dive into Intel's financials and future outlook, there are additional InvestingPro Tips available, providing a comprehensive analysis of the company's performance and potential investment opportunities. Intel's strategic engagement with the U.S. government in securing the semiconductor supply chain is a testament to its industry standing, as noted in the third InvestingPro Tip, which identifies Intel as a prominent player in the Semiconductors & Semiconductor Equipment industry. With the production of its most advanced technology, Intel 18A, on the horizon, the company's focus on innovation and advanced manufacturing remains clear. Investors interested in exploring the full spectrum of insights on Intel can find more than 10 additional InvestingPro Tips by visiting https://www.investing.com/pro/INTC, further enriching their understanding of the company's market position and investment potential.