has confirmed that it is eligible to receive up to $3 billion in funding from the US government. This funding will be dedicated to manufacturing cutting-edge chips for military defense and intelligence purposes. The initiative, known as the Secure Enclave, aims to establish a reliable supply of advanced chips, reducing the country's reliance on Asian markets.

The $3.5 billion program was set aside by lawmakers as part of the 2022 Chips and Science Act, with the goal of strengthening the American semiconductor industry. This move aligns with the government's mission to boost national security and promote domestic manufacturing capabilities. Additionally, it aims to decrease dependence on overseas suppliers for essential technological components.

Separate from this government funding, Intel is also poised to receive a potential $8.5 billion grant under the Chips Act. This grant will support commercial factories located across four states within the United States. These investments demonstrate the government's commitment to rejuvenating the semiconductor industry and securing the nation's technological infrastructure.

Following this news, Intel's shares witnessed a rise of up to 6.5% on Monday, reaching $20.94 per share. This comes as a positive development for the company, which had experienced a 61% decline in stock value throughout the year.

Regarding these strategic investments, Chris George, President and General Manager of Intel Federal, a subsidiary of Intel specializing in government work, stated, "Today's announcement highlights our joint commitment with the US government to fortify the domestic semiconductor supply chain." The Departments of Defense and Commerce also expressed their support, emphasizing that the awarded funding will further strengthen national security.

According to a joint statement from the Department of Defense and the Department of Commerce, the Pentagon will oversee the execution of the $3 billion award. This decision stems from an agreement between the two departments, as the Department of Commerce administers the broader Chips Act grant program. The funding will be allocated for fiscal years 2024 and 2025, with the remaining $500 million slated for appropriation in fiscal year 2026.

The government's proactive approach in strengthening the nation's semiconductor industry is a testament to its commitment to protecting national security and reducing reliance on foreign suppliers. With Intel's eligibility for significant funding, the stage is set for enhanced capabilities in manufacturing state-of-the-art chips for military and defense purposes. This effort will ensure a secure and robust domestic semiconductor supply chain while bolstering the American semiconductor industry's competitive edge.