As the PC business grows relatively weaker due to the sickly economic state and the rise of cloud computing, Intel hopes to avoid a downfall of its own by beefing up its portfolio. The premier microchip producer spurred research to power their way to mobility space through Ultrabooks.  Now, they are adding no less than the U.S. government as one of their clients, forming a subsidiary by creating a “federal” business unit to explore the potential of building such relationships. Intel hopes to deliver high performance computing (HPC) to the government podium.

Intel Federal LLC will bring HPC to the Department of Energy, and a number of other agencies. This project is eyeing all segments of the government in due time. Intel Federal will have offices in Oregon, California and Washington D.C.

VP and general manager of Intel’s Datacenter and Connected Systems Group Kirk Skaugen sheds light on what this subsidiary will be about and the long-term benefits the government will get out of it.

“Reaching supercomputer performance levels of a hundred times more powerful than today by 2018 will require the combined efforts of both industry and government,” he says.  “An ExaFlop supercomputer’s performance is the equivalent of every person on Earth making about 150 million calculations per second. We look forward to collaborating more closely with the U.S. government on future supercomputing challenges.”

He further added the purpose of putting up this new business parcel of Intel saying, “the creation of Intel Federal demonstrates the strategic importance of these programs and will give us the ability to establish and maintain the unique processes, procedures and controls needed to develop and manage programs with the government.”

Intel understands the need to stay upbeat and competitive in the market.  Although obviously troubled, the company has managed to come up with a few headliners that include a $30 million research plan for cloud computing, a face-off with AMD and Hot Chips, as well as exploration of current PC growth in China.

Investments-wise, targeting government tie-ups is lucrative and stable, considering a steady supply of cash flow and a binding agreement that usually lasts for years.  This goes along with the good exposure and bankable reputation of being trusted by legitimate authorities.  The majority of the top 10 companies that makes billions from the U.S. government are technology enterprises, with Lockheed Martin at the forefront.