Intel wins second section of contract to assist Pentagon develop chips | World Information

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Intel wins second phase of contract to help Pentagon develop chips

CHANDLER: Intel Corp on Friday stated it has received a second-phase contract in a mission aimed toward serving to the U.S. navy make extra superior semiconductors inside the USA.

Beneath the mission, Intel will assist the navy develop prototypes of chips utilizing its semiconductor packaging know-how at factories in Arizona and Oregon. The packaging know-how permits items of chips referred to as “chiplets” from totally different suppliers to be mixed into one bundle, serving to cram extra options right into a smaller completed product whereas reducing its energy consumption.

“As an increasing number of semiconductor manufacturing has moved offshore, the (Division of Protection) could be very curious about making certain that they’ve superior microelectronics for nationwide safety manufactured right here within the U.S.,” Bob Swan, Intel`s chief government, informed Reuters in an interview as he toured a just lately accomplished $7 billion manufacturing facility enlargement in Arizona, the place Intel`s workforce totals 12,000.

“As a U.S.-based firm, it`s vital to us to have the ability to deal with a number of the basic issues that the U.S. would have about entry to those crucial applied sciences going ahead,” he stated.

Intel declined to reveal a greenback determine for its portion of the contract, which is being overseen by the Naval Floor Warfare Heart, Crane Division. Intel received a part of the primary section of the contract in 2019.

Intel`s work with the Protection Division comes as U.S. officers concentrate on boosting home semiconductor manufacturing in response to the rise of China as a strategic competitor. About 75% of the world`s chipmaking capability is in Asia, with lots of the most superior vegetation in Taiwan and Korea, throughout the attain of the Chinese language and North Korean militaries.

“I feel one of many areas the place we are able to have probably the most impression on China broadly is re-shoring microelectronics,” Ellen Lord, the Pentagon`s chief weapons purchaser, informed the U.S. Senate Armed Providers Committee in a listening to on Thursday.

Intel is one among three firms on this planet that may make extremely superior pc chips. The opposite two – Taiwan Semiconductor Manufacturing Co Ltd <2330.TW> and Samsung Electronics Co Ltd <005930.KS> – have packaging know-how much like Intel`s.

However Intel has been engaged on the know-how longer and might carry out the work in the USA, which the opposite two can’t, stated Dan Hutcheson, chief government officer of VLSI Analysis.

“There`s nobody else with the combo of know-how that they’ve in the USA,” he stated. “Packaging is an enormous win for them.”
With Washington`s relations with Beijing at their worst in a long time, U.S. officers have cracked down on suppliers to Chinese language corporations resembling Huawei Applied sciences Co Ltd [HWT.UL], with new guidelines on Sept. 15 barring most U.S. firms from promoting to the Chinese language telecommunications large. Intel confirmed final month that it has licenses to maintain supplying some merchandise.

Swan stated that international market entry was “essential” to serving to Intel generate the money wanted to construct chip factories, referred to as “fabs” within the business.

“We earn money, we take that cash, and we reinvest predominantly right here, in fabs within the U.S. and in analysis and growth,” he stated.

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