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The Biden administration awarded technology company Intel Corp. a grant of up to $3 billion under the CHIPS and Science Act to create a “Secure Enclave” program for microelectronics, a critical part of U.S. defense systems (Reuters, subscription).

What’s going on: “The Secure Enclave initiative is designed to ensure a secure supply of microelectronics for defense requirements, aligning with the Department of Defense’s enduring need for state-of-the-art, commercial, bespoke and classified microelectronics.”

• The award reflects the administration’s focus on reshoring semiconductor manufacturing and “enhanc[ing] national security through targeted investments in critical semiconductor manufacturing and technology development.”
• The news comes six months after the administration announced another grant to Intel under the CHIPS and Science Act: $8.5 billion to build and modernize semiconductor commercial fabrication.

Why it’s important: “The latest award from the NAM-championed CHIPS and Science Act is great news for manufacturing in America and will help ensure the continued expansion of domestic semiconductor production,” the NAM wrote on Monday following the news.