Rumors from last week pointed to a possible $3.5 billion government defense-related investment—Intel was linked to this very lucrative semiconductor supply contract. Insiders posited that the US Department of Commerce was readying a rough $1 billion investment, while the Pentagon prepared around $2.5 billion. The latter has scrapped those plans, according to anonymous sources—Bloomberg believes that this: "move threatens to limit the total amount that Intel has been expecting to get in federal funding, setting up a contentious situation." The publication's moles have requested complete anonymity, due to the secretive nature of policy negotiations.

The US Department of Commerce deliberates over the nation's CHIPS Act—this fund could be utilized to "make up for the shortfall," following the Pentagon's reported last minute course change. The Department of Commerce could be forced to foot the entire bill—of $3.5 billion—if Intel's services are secured. Negotiations over a so-called "Secure Enclave" project have been ongoing since last year, according to insiders. It is possible that the "fast-moving" military spending bill set off alarms at the Pentagon—the Department of Defense's reasonings were not revealed by Bloomberg's investigation. Several media outlets have requested official comments from the two arms of government. Yesterday, Intel shares fell by 3%—as reported Investopedia—with the market reacting to rumors of cancelled plans.

On Monday 27 March U.S. President Joe Biden invoked the Defense Production Act in order to form a budget of $50 million, to be spent on domestic and Canadian production of printed circuit boards (aka PCBs). This move was deemed as important to matters of national defense, and technology has been cited as key part of North American security efforts. In a memo issued that day, Biden stated that without presidential action under the act: "United States industry cannot reasonably be expected to provide the capability for the needed industrial resource, material, or critical technology item in a timely manner."

PCBs form the basis of vital components that are integrated into military-purpose missiles and radars, in addition to electronics utilized for energy distribution and the nation's healthcare. The President continues to outline the importance of the Defense Production Act: "I find that action to expand the domestic production capability for printed circuit boards and advanced packaging is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability."