Intel (INTC) shares rose on Monday, boosted by a report that the semiconductor maker had received a billion-dollar contract from the Pentagon to manufacture chips for the U.S. military.

Bloomberg reported late Friday that Intel is eligible for $3.5 billion in federal grants under the Secure Enclave program, which aims to produce sophisticated chips for military and intelligence applications. The funding announcement could come as early as this week, according to people familiar with the matter.

Award complements previous US grants and loans

Bloomberg The new contract comes in addition to potential $8.5 billion in grants and $11 billion in loans awarded to Intel in March under the CHIPS and Science Act of 2022. The act aims to revive semiconductor production in the United States and limit dependence on Asia. Intel did not immediately respond to Investopedia’s request for comment on Monday.

Intel has struggled recently as rivals making artificial intelligence (AI) chips have eaten into its market share. Intel recently reported larger-than-expected losses, cut jobs and watched its stock price plummet.

Intel’s share price, which is up more than 2% in recent trading, is still down more than 50% so far this year.