Intel Shores Up $3.5 Billion Deal to Make Chips for Military (1)

Intel Corp. has officially qualified for as much as $3.5 billion in federal grants to make semiconductors for the Pentagon, according to people familiar with the matter, after the chipmaker reached a binding agreement with US officials.

The secretive program, called Secure Enclave, seeks to establish production for advanced chips with military and intelligence applications. It spans multiple states, including a manufacturing facility in Arizona, Bloomberg has reported.

Though Intel has always been the frontrunner for this award, there’s been pushback from other chipmakers, concern in Washington about the wisdom of relying on one firm, and a funding fight across ...