Intel Corp. said it would provide commercial foundry services in the first phase of a broader Defense Department program that aims to build up domestic design and production of cutting-edge chips.

The chip maker on Monday said its foundry services unit will join with companies such as International Business Machines Corp. , Synopsys Inc., Cadence Design Systems Inc. and others as part of the RAMP-C program, which is short for Rapid Assured Microelectronics Prototypes – Commercial.

The program was designed to support a U.S.-based, chip-building ecosystem that could give the government agency access to technology and help secure its long-term needs for products, Intel said.

Intel’s entry into the program comes as the U.S. government has been working to address a global semiconductor shortage. The Biden administration’s defense budget for the 2022 fiscal year includes a request for $2.3 billion for microelectronics efforts deemed critical to long-term national security.

The contract award will support Intel Foundry Services, which the company established as a stand-alone division earlier this year to produce Intel-design chips and those using other architectures.

This post first appeared on wsj.com

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