The Biden administration awarded Intel up to an additional $3 billion under the CHIPS and Science Act for the "Secure Enclave" program, designed to expand the supply of microelectronics for the Department of Defense.

Intel is making two new AI-capable chips for Amazon's cloud computing unit, including one based on Intel's Xeon 6.

Intel’s partnership with AWS is part of the chipmaker’s attempt to play catch-up. The new deal, along with a $3 billion grant from the US government to boost domestic chip making and make chips for the US military, “demonstrates the continued progress we are making to build a world-class foundry business,” Intel said in the statement.