DeepSummary
The episode discusses a backroom deal in Congress that diverted $3.5 billion from the $39 billion allocated to subsidize microchip manufacturing in the CHIPS and Science Act towards a secret Pentagon program called Secure Enclave. This program aims to establish a specialized facility for making microchips for defense and intelligence applications, addressing national security concerns over U.S. reliance on Asian chip production.
The funding for Secure Enclave was pushed by the intelligence community and Intel, with the latter lobbying for years to get the program funded. However, the inclusion of Secure Enclave in the CHIPS Act and its funding from the Commerce Department's portion caused tensions within the administration, as Commerce Secretary Gina Raimondo was reluctant to use the CHIPS money for this purpose.
While little is publicly known about Secure Enclave's implementation, lawmakers were surprised by the deal, and the diversion of funds is expected to impact other planned CHIPS programs aimed at supporting smaller chip companies and the broader semiconductor supply chain. Oversight of the classified program is also a concern.
Key Episodes Takeaways
- A backroom deal diverted $3.5 billion from the CHIPS Act towards a secret Pentagon program called Secure Enclave aimed at establishing a specialized microchip facility for defense and intelligence needs.
- The intelligence community and tech company Intel lobbied heavily for years to get Secure Enclave funded, ultimately exploiting the CHIPS Act as an opportunity.
- The inclusion of Secure Enclave in the CHIPS Act and its funding from Commerce Department money caused tensions within the Biden administration.
- Lawmakers were largely unaware of the Secure Enclave deal negotiated behind closed doors during the CHIPS Act process.
- Diverting funds to Secure Enclave is expected to impact other planned CHIPS programs aimed at supporting smaller chip companies and the supply chain.
- Little is publicly known about how Secure Enclave will be implemented, and oversight of the classified program is a concern among lawmakers.
- While Intel is viewed as the likely recipient of Secure Enclave funds, no formal decisions have been announced yet by the implementing agencies.
- The saga highlights concerns about transparency and proper allocation of the CHIPS Act funding intended to reinvigorate the U.S. semiconductor industry.
Top Episodes Quotes
- βSo secure Enclave is a really mysterious project, and it's basically going to go out to one company, as I understand it, to make and finish microchips in some sort of specialized facility for defense and intelligence applications.β by Christine Moy
- βUltimately, Avril Haynes, the director of national intelligence, was one who brought this idea to the White Biden White House. That's what two former defense officials told us. And so this idea was heavily promoted by the intelligence community, but the ChiPs act really gave them an opening to fund this from something other than the Pentagon's budgets.β by Christine Moy
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Episode Information
POLITICO Tech
POLITICO
5/28/24