(Reuters) - President Joe Biden's administration said on Monday that Intel Corp has been awarded up to $3 billion in direct funding under the CHIPS and Science Act for the Secure Enclave program.

As foreign rivals leave the marquee chip maker behind, Intel gets a boost from the government, which wants to keep some semiconductor manufacturing securely and reliably based in the U.S., with generous cash incentives.

The Biden Administration on Monday awarded Intel Corp. up to $3 billion from the CHIPS and Science Act to develop a "Secure Enclave" for microelectronics, which are a critical component to a wide range of weapon systems and other national security products.

Intel is making two new AI-capable chips for Amazon's cloud computing unit, including one based on Intel's Xeon 6.

Intel Corp. said on Monday that it’s eligible to receive as much as $3 billion in US government funding to manufacture chips for the military, confirming earlier reporting by Bloomberg.

Intel and Amazon's AWS said on Monday they would expand their collaboration, including a co-investment in custom chip designs, under a multi-year, multi-billion-dollar framework. Intel's shares were up 9% in extended trading.

Intel shares jumped 6% Monday afternoon after it was confirmed the company would receive up to $3B in direct funding under the CHIPS and Science Act. Read more here.