US Army will be left without advanced chip "for defense and intelligence": Pentagon spared money

Pentagon refused to issue an Intel grant of $ 2. 5 billion for semiconductor production for military needs. Pentagon refused to issue an Intel grant of $ 2. 5 billion. The manufacturer had to invest this money in the creation of processors used in defense and intelligence, SCMP writes. Most likely, Intel will not receive the amount of federal funding she was counting on. It is worth noting that the financing of the MIC providered the allocation of $ 3.

5 billion for the production of advanced semiconductors for defense and intelligence, of which 1 billion should be allocated by the United States Ministry of Trade and another 2. 5 billion - the US Defense Ministry. But the Pentagon has abandoned this plan a few days before the deadline for providing state funding, sources say. Therefore, the legislators instructed the Ministry of Commerce to use other funds to cover the deficit.

Analysts conclude that the Ministry of Defense decided to direct most of the money to their own needs. However, under the Defense Agreement, Intel is still a specialized supplier of chips for military and scouts under the Secure Enclave. In his statement, the representative of the Ministry of Commerce reported that the decision to finance Secure Enclave has not yet been made.

In turn, Jeff Jurgensen, a Pentagon representative, said that the Defense Ministry would continue to work with partners from different agencies and with Congress to support the implementation of the chip law and meet the requirements of the military for microelectronics. According to sources familiar with the situation, negotiations are still ongoing. Intel refused to comment and the White House did not respond to the comment request.

Intel Gelsinger CEO Petel Gelsinger told investors that public money would help finance businesses in Ohio and Arizona, in which the manufacturer himself has invested $ 20 billion. The Ministry of Commerce has already announced three grants to firms producing old generation chips. One of them, $ 1. 5 billion, will receive GlobalfoundRies, which is one of the leading suppliers of the old processors for the US Armed Forces.

Sources report that Globalfoundries lobbied in the Congress of Intel removal from defense financing. Some legislators have also expressed concern that the military relied on only one company, Intel, in the production of advanced chips. In her statement, Globalfoundries stressed that she did not consider Secure Enclave the only right solution.