Intel Jumps 3% as It Wins U.S. SHIELD Contract to Supply Chips & Advanced Packaging Under $151 Billion Defense Program
Intel has won a major U.S. Department of War contract, according to an announcement by the company's executive, who said Team Blue is now the chip supplier for the SHIELD program.
Shares of Intel rose 3% in premarket trading. The chip giant is scheduled to announce its results for the fourth-quarter 2025 after the market closes on Thursday, January 22.
Intel has a long history of securing contracts with the Department of War (DoW), as the last time we saw a similar arrangement was with the Secure Enclave Award, a $3.5 billion contract. According to an announcement by James Chew, Intel's new VP of Government Technology, the company has now been included in the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) contract, which has a ceiling of $151 billion, and it is known to be one of the most ambitious projects by the DoW.
Team Blue's status as the native US chip manufacturer gives them the edge in official government contracts, given that, due to the sensitivity of the technologies under development, there isn't any other alternative for the administration. There isn't any disclosure about which process technologies we could see adopted under the SHIELD program, but given the military-focused application, mature nodes will be a larger part of the arrangement. Intel has plenty of options, such as the Intel 16, which are known to be integrated in radio-frequency (RF) and analog components.
The announcement was posted on Chew's official LinkedIn account, and, interestingly, Intel's CEO, Lip-Bu Tan, liked the post, showing his appreciation for the breakthrough. Chew recently took the VP position back in December, and the primary focus is to ensure that Intel commits to its US chipmaking ambitions and works with the government to build a resilient supply chain. The relations between Intel and the Trump administration have had their "ups and downs", but it is evident that now, both parties are on the same track.
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