Intel Corporation (INTC) recently reported it won a crucial contract with the US Department of Defense, as it is the only company that designs and manufactures various microcircuits in US factories.
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The financial terms of the contract and the timeline were not specified. In a press release published by Intel Corporation (INTC), it was explained that this is a major infrastructure program whose aim is to ensure that the Department of Defense can continue to receive advanced microprocessors without interruption.
A program of this type is called Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C). This program is aimed at helping build a “semiconductor manufacturing ecosystem” in the U.S. through Intel’s new dedicated plant, Intel Foundry Services.
The Intel Foundry Services will design and manufacture integrated circuits in collaboration with industry leaders IBM (IBM), Cadence, Synopsys, and others. The company announced the creation and manufacturing of the 18A test chip for its most advanced technology. This allows INTC to get investments for the development of technologies, and they can have a large customer with long-term supply contracts.
With the help of a major US government contract, Intel Corporation (INTC) will receive financial support for the construction of two new plants in Arizona, resulting in investments totaling $20 billion.
Additionally, it confirms President Joe Biden’s announcement that the US would establish a semiconductor production facility. With in-house production, there will be less dependence on supplies coming from Asia, which accounts for 80% of all advanced chip manufacturing capacity in the world.
On August 25, INTC stock traded at $53.81. The value of Intel’s outstanding shares reached $220.11 billion. The company gained 3.10% in the previous 5 trading days while its share price falls -5.46% in 3 months period.
