The Biden Administration on Monday awarded Intel as much as an extra $3 billion beneath the CHIPS and Science Act for the “Safe Enclave” program which is designed to broaden the availability of microelectronics for the U.S. Division of Protection.

Shares of Intel jumped 8% in prolonged buying and selling after the company announced it is making a separate entity for its foundry enterprise, which may permit it to lift outdoors funding.

Intel is constructing foundry crops in 4 states as a part of its challenge to extend home semiconductor manufacturing for different suppliers. In March, the Biden administration awarded Intel with as much as $8.5 billion beneath the CHIPS and Science Act. A senior authorities official advised CNBC that disbursements are anticipated by the tip of the yr.

Intel CEO Pat Gelsinger, in a current assembly with Commerce Secretary Gina Raimondo, voiced frustration over the heavy reliance that U.S. firms have on Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker.

The “Safe Enclave” program is the most recent improvement within the relationship between Intel and the Division of Protection, which incorporates tasks to construct Fast Assured Microelectronics Prototypes (RAMP) and State-of-the-Artwork Heterogeneous Integration Prototypes (SHIP).

Intel’s continued push for funding from the Biden administration displays its mission “to fortify the home semiconductor provide chain and to make sure the US maintains its management in superior manufacturing, microelectronics programs, and course of expertise,” Chris George, president and normal supervisor of Intel Federal, stated within the press launch.

Intel has misplaced 60% of its worth this yr because it struggles to seek out its method within the booming synthetic intelligence market. The corporate announced in August it could reduce 15% of its workforce as a part of a $10 billion cost-reduction plan.

— CNBC’s Seema Mody and Rohan Goswami contributed to this story.