Intel Corp. said on Monday that it’s eligible to receive as much as $3 billion in US government funding to manufacture chips for the military, confirming earlier reporting by Bloomberg. The effort, called the Secure Enclave, aims to establish a steady supply of cutting-edge chips for defense and intelligence purposes. The award is separate from a possible $8.5 billion grant from the 2022 Chips and Science Act that would support Intel’s commercial factories across four US states. In a separate statement Monday, Intel said that those projects continue to make progress. Intel shares rose 6.4 per cent to $20.91 Monday on the news. The stock remains down 58 per cent this year. Lawmakers set aside $3.5 billion in March for the military programme as part of the Chips Act, which aims to boost the American semiconductor industry and reduce reliance on Asia. The $3 billion agreement with Intel covers Secure Enclave funding appropriated to the Commerce Department for fiscal years 2024 and 2025, which started July 1.