Intel Corp (NASDAQ:INTC, ETR:INL) shares continued to gain momentum after it was revealed on Monday that the company has been awarded up to an additional $3 billion from the Biden administration under the CHIPS and Science Act for the Secure Enclave program.
The stock was up more than 6% in early trade Tuesday, building on the previous day’s gains, at about $22.
The Secure Enclave program aims to expand the manufacturing of semiconductors for the US government and builds on previous projects between Intel and Department of Defense.
“Intel is proud of our ongoing collaboration with the US Department of Defense to help strengthen America’s defense and national security systems,” Chris George, Intel Federal president and general manager, said in a statement.
“Today’s announcement highlights our joint commitment with the US government to fortify the domestic semiconductor supply chain and to ensure the United States maintains its leadership in advanced manufacturing, microelectronics systems, and process technology.”
This funding is separate from a proposed funding agreement of up to $8.5 billion reached between the company and the Biden administration in March to support the construction and modernization of semiconductor commercial fabrication facilities.
The company is carrying out semiconductor manufacturing and research and development projects at sites in Arizona, New Mexico, Ohio and Oregon.