Benzinga | Aug 23, 2021 09:06AM EDT

Intel Bags Deal To Develop Government's Foundry Ecosystem

* Intel Corp (NASDAQ:INTC) won an opportunity from the U.S. Department of Defense to provide commercial foundry services in the first phase of the multi-phase Rapid Assured Microelectronics Prototypes - Commercial (RAMP-C) program.

* Intel Foundry Services will lead the work. The financial terms of the deal remain undisclosed.

* Intel Foundry Services will partner with companies including International Business Machines Corp (NYSE:IBM), Cadence Design Systems Inc (NASDAQ:CDNS), Synopsys Inc (NASDAQ:SNPS). The partnership aims to support the U.S. government's designing and manufacturing assured integrated circuit needs.

* Intel Foundry Services President Randhir Thakur said that the RAMP-C program would drive commercial foundry customers and the DoD to tap Intel's investments in leading-edge process technologies.

* Intel's customers and ecosystem partners will help bolster the domestic semiconductor supply chain and ensure U.S. maintains leadership in R&D and advanced manufacturing.

* The initiative assumes significance as the U.S. aims to ramp up domestic chip production amid an intense chip crisis.

* Intel raised its FY21 outlook following Q2 revenue, earnings, and margin beat.

* Price Action: INTC shares traded higher by 0.69% at $52.37 in the premarket session on the last check Monday.