Intel wants to make money by making chips for the US Department of Defense

Intel is facing serious challenges that call into question its future as a processor leader. Competition from companies such as AMD and Qualcomm, as well as massive investments in the semiconductor sector and problems with the 13th and 14th Core series processors led to a deterioration in financial performance. In response, there have been rumors about a possible sale of part of Intel’s business, and Qualcomm is considering the possibility of buying some of the company’s assets. However, Intel continues to look for ways to strengthen its position.

One such step was the conclusion of an agreement with the US Department of Defense within the framework of the secret Secure Enclave program. This program aims to produce advanced chips for military and intelligence applications, which will allow Intel to receive $3.5 billion in government grants. Chip production will be concentrated in factories in several states, including a facility in Arizona.

While the details of the deal have not been disclosed, there are speculations that Intel will develop artificial intelligence chips for military drones and computing systems that use generative AI in intelligence. However, despite the participation in this project, it is unlikely that it will significantly change the current state of the company in the market. Intel’s plans to freeze construction of a $30 billion plant in Germany and the possible sale of Altera’s FPGA division underscore the serious challenges facing the company.