The United States government could grant Intel a multibillion-dollar contract to build microchip facilities for the military.
Intel has been known for producing microchips since its founding in 1968. Today, the U.S. government will potentially award billion-dollar funding for microchip facilities to the multinational technology company. Here is everything you need to know about Intel and the United States’ $53 billion Chips Act.
What is a Microchip?
In general, a microchip is a piece of integrated circuit (CI) made on a tiny scale from a semiconductor material. Microchips are typically made of silicon, a cost-effective and sustainable semiconductor.
Although a small tool, a microchip comes with great power. Here are the standard components of a microchip:
- Transistors that create or amplify electrical signals
- Resistors that control and manage the flow of electrical current
- Capacitors that can store electricity can store electrostatic field discharge electric current.
- Diodes that conduct one-way electric current
How Does It Help the Military?
The military uses application-specialized integrated circuits (ASICs) instead of the regular microchips used in civilian electronics. ASICs is one of the microchips that the military uses. It is more efficient as it was designed and developed for specific use.
Most of the time, microchips are helpful for logistics purposes and data storage. The newer chips could transform the U.S. troops’ battle experience, as these chips can execute complex operations.
Intel: Billion-Dollar US Government Funding for Defense Microchip Facilities
The United States government is considering awarding billions of dollars worth of contracts to Intel. The $52.7 billion funding is under the Biden administration’s Chips Act. The award aims to build secure facilities to manufacture microchips for military and intelligence purposes.
The secure facilities would be known as a “secure enclave,” according to the Wall Street Journal. The contract will lessen the military’s reliance on East Asian chips, especially those from Taiwan, which is vulnerable to a takeover from China.
Besides the secure-enclave facilities, the company has a good chance of getting billions of dollars in funding. It will assist with expenses for building new factories in the U.S., such as in Ohio and Arizona.
However, some lawmakers and chip makers worry about the planned facility. They believe that giving Intel big grants will make it easier for other companies to get funds.
In the 2021 ExecutiveGov report, DoD awarded Intel a contract to help the semiconductor sector create and demonstrate an intellectual property ecosystem. It is the first phase of commercial chip production.
The contract is under the Rapid Assured Microelectronics Prototypes-Commercial or RAMP-C program of the DoD. It will be a joint venture between Intel, IBM, Synopsys, Cadence, and other technology companies.
All operations under this project will possibly occur at Intel’s Arizona factory complex.
CHIPS and Science Act
Last year, President Biden signed the CHIPS and Science Act to strengthen the manufacturing industry, national security, and America’s research and development (R&D). The CHIPS and Science Act makes strategic investments to support the United States to remain competitive and even thrive in the future.
The CHIPS and Science Act aims to increase the U.S.’s chip leadership. The government will provide $52.7 billion to support the chosen semiconductors’ research, training, and manufacturing. Here is the breakdown of the budget:
- $39 billion for manufacturing incentives
- $2 billion for the legacy chips used in automobiles and defense systems
- $13.2 billion for workforce and R&D
- $500 million for semiconductor supply chain activities and communications
It additionally provides a 25% investment tax credit for expenditures related to semiconductors and equipment. The incentives will help secure domestic supplies, encourage private investment worth billions of dollars, and generate well-paying jobs and thousands more high-skilled manufacturing employment.
About Intel Corp.
Intel Corp. is a prominent American multinational manufacturer of semiconductors and processing units. This technology leader’s expertise includes AI and 5G network transformation.
Intel was founded in 1968, and its technology has been the foundation of many significant advances in computing. The company has been a trusted technological provider not only in the U.S. but also all over the world.
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Besides microchips, The company is widely known for providing computer products and services. Intel offers a wide of products, including the following:
- Processors
- Graphics processing units
- Chipsets
- Software
- Wireless products
- Ethernet Products
- Intel® FPGAs
- Intel® NUC
- Server Products
- Memory and Storage
Intel is widely recognized as the creator of the microprocessors used in almost all personal computers today. The American technology company is headquartered in Santa Clara, California.