May 28, 2024 12:28:00

It turns out that 540 billion yen in funds have been diverted from the 'CHIPS Act,' a financial support project for semiconductor manufacturing companies, to Intel's secret project 'Secure Enclave'

In the United States

, the Creating Helpful Incentives to Produce Semiconductors and Science Act (CHIPS Act) was enacted in August 2022, which includes a provision to allocate approximately $52.7 billion (approximately 7.93 trillion yen) to strengthen semiconductor manufacturing capacity in the United States over the next five years. However, it has been reported that $3.5 billion (approximately 540 billion yen) from this CHIPS Act is being invested in the secret national security project 'Secure Enclave' promoted by Intel.

'I don't know how this happened': A $3B secret program undermining Biden's tech policy - POLITICO
https://www.politico.com/news/2024/05/24/3-billion-secret-program-undermining-bidens-tech-policy-00158757

The CHIPS Act provides financial support to semiconductor manufacturers in the United States in preparation for supply chain disruptions due to geopolitical risks and semiconductor shortages. To date, the U.S. government has provided Intel with approximately 3 trillion yen in funding to improve its semiconductor manufacturing capacity.

US government announces approximately 3 trillion yen funding for Intel - GIGAZINE

However, in a spending bill submitted to the U.S. Congress in March 2024, it was revealed that $3.5 billion of the approximately $52.7 billion used for funding under the CHIPS Act was earmarked for a project called the 'Secure Enclave.'

According to lawmakers involved in the CHIPS Act, the Secure Enclave is a classified project to manufacture chips in special facilities for defense and intelligence activities, and Intel has reportedly actively lobbied for its establishment.

According to POLITICO, Secure Enclave was formed to solve the Department of Defense's problem of procuring reliable high-end microchips. The project manufactures and packages microchips in specialized facilities for defense and intelligence use, including classified projects.

Even before the passage of the CHIPS Act, Intel and the US intelligence community had appealed to Department of Defense officials about the need to establish the Secure Enclave. Representative Jim Heim, Chairman of the House Intelligence Committee, said, 'Defense and intelligence experts have told me that access to cutting-edge microelectronics is important, and I have long supported efforts to fund the Secure Enclave.' In addition, Senator Mark Warner, Chairman of the Senate Intelligence Committee, said, 'The Secure Enclave is critical to national security and should be adequately funded.'

On the other hand, some lawmakers are opposed to the diversion of funds from the CHIPS Act to the Secure Enclave. Congresswoman Zoe Lofgren pointed out, 'I knew about the Secure Enclave, but I didn't know about the source of funding for this project until a few days before Congress released the spending bill'

( PDF file) . Regarding the diversion of funds to the Secure Enclave, Lofgren said, 'The Secure Enclave should not be included in the CHIPS Act. If we are to develop high-end microchips necessary for national defense, the Department of Defense should provide the funds,' expressing her opposition, but she reflected, 'My objections were unsuccessful.' In addition, Lofgren said, 'I hope that Congress will stop the diversion of funds to the Secure Enclave in the FY 2025 budget proposal.'

'The diversion of CHIPS funds to the Secure Enclave would transform a competitive public selection process designed to boost domestic industry into an effort that could benefit only one company, potentially undermining an important government policy,' one critic said.

Meanwhile, Mike Schmidt, CHIPS Program Office Director, said, 'The Secure Enclave is a priority project for the Administration and for the Department of Commerce. The Secure Enclave is consistent with the CHIPS Act's broad objective of 'investing in projects that advance our economy and national security.''