Intel and DoD Partner to Boost US Chip Manufacturing

Intel and the Department of Defense Collaborate on Chip Production

A significant agreement has been reached between Intel and the Department of Defense to foster a robust, domestically-based commercial chip-building ecosystem. This collaboration marks the initial phase of the Rapid Assured Microelectronics Prototypes – Commercial (RAMP-C) program.

Strengthening the Semiconductor Supply Chain

The primary objective of RAMP-C is to reinforce the nation’s semiconductor supply chain, reducing reliance on foreign sources. Intel’s recently established division, Intel Foundry Services, will take the lead in this crucial initiative.

This program is designed to facilitate the creation of specialized integrated circuits and commercial products essential for the Department of Defense’s technological systems.

Key Partnerships and Technological Advancement

Intel will be working alongside industry leaders such as IBM, Cadence, and Synopsys to build a comprehensive domestic foundry ecosystem. Randhir Thakur, president of Intel Foundry Services, emphasized the program’s benefits.

“The RAMP-C program will allow both commercial clients and the Department of Defense to leverage Intel’s substantial investments in cutting-edge process technologies,” Thakur stated. “Together with our partners, we aim to strengthen the domestic semiconductor industry and secure U.S. leadership in research and advanced manufacturing.”

Significant Investment in Domestic Manufacturing

Intel has announced plans to invest around $20 billion in the construction of two new fabrication facilities in Arizona. This investment is intended to position Intel as a leading provider for domestic foundry customers.

These new factories will be instrumental in meeting the growing demand for Intel’s products and expanding its manufacturing capacity.

Addressing the Global Semiconductor Shortage

This partnership arrives during a period of ongoing global semiconductor shortages. These shortages are largely attributed to the pandemic’s disruption of the global supply chain.

Intel, along with other major technology and automotive companies, has been actively engaging with the White House to explore potential solutions to this critical issue. CEO Pat Gelsinger recently met with Biden administration officials to discuss plans for increased chip production and to request financial support.

Strategic Importance of Semiconductors

Gelsinger highlighted the strategic importance of semiconductors, stating, “One of the most important lessons learned over the past year is the strategic value of semiconductors and the benefit to the United States of maintaining a strong domestic semiconductor industry.”

He further added, “We were enthusiastic about the opportunity to offer our capabilities to a broader range of partners, including the U.S. government, when we launched Intel Foundry Services earlier this year, and it’s encouraging to see that potential realized through programs like RAMP-C.”

Intel’s Strategic Shift

Gelsinger assumed the role of CEO in January with a clear mandate: to revitalize Intel and implement new strategies for both manufacturing and sales. There were previous reports suggesting Intel considered acquiring GlobalFoundries for $30 billion, but no further developments have been publicly announced.

Intel’s commitment to domestic production and collaboration with the Department of Defense signals a significant shift in strategy, aimed at securing the future of the U.S. semiconductor industry.