IBM awarded $576M DOD chip manufacturing contract

The 10-year contract tasks Big Blue to build a secure enclave for semiconductor development and shoring up supply chains.

IBM has been awarded a 10-year $576 million contract to support the Defense Microelectronics Activity and its Trusted Access Program Office.

The Defense Microelectronics Activity is responsible for delivering critical products, services and expertise to support weapons systems readiness.

Under this contract, IBM will create a trusted enclave for development of advanced semiconductor technologies and services with a trusted supply chain.

Work will take place in Burlington, Vermont; East Fishkill, New York; Malta, New York; and Bromont, Canada.

This contract will support another program called Trusted Foundry Access III – Manufacturing, which was awarded last year to GlobalFoundries at a ceiling north of $3 billion.

GlobalFoundries provides application-specific integrated circuits and associated manufacturing services under its contract, according to GovTribe data.