Intel leaps following $3B funding announcement from CHIPS

Intel (NASDAQ:INTC) shares jumped 6% Monday afternoon after it was confirmed the company would receive up to $3B in direct funding under the CHIPS and Science Act for the Secure Enclave program.

The Secure Enclave program focuses on projects for the U.S. Department of Defense, including Rapid Assured Microelectronics Prototypes – Commercial, or Ramp-C, and State-of-the-Art Heterogeneous Integration Prototype, or SHIP.

The latest federal funding package for Intel is separate from the $8.5B Intel will receive under the CHIPS and Science Act, which was announced in March. That funding will go to Intel’s semiconductor manufacturing and research and development projects at sites in Arizona, New Mexico, Ohio and Oregon.

Intel Foundry is expected to begin production of chips and semiconductor packaging sometime next year.

Intel shares have plunged about 50% over the past six months.