The Department of Commerce released its first CHIPS and Science Act grant on Monday to UK-based aerospace manufacturer BAE Systems for $35 million.
The money will be used to modernize BAE Systems’ microelectronics center in Nashua, New Hampshire. The chip fab and foundry facility produces advanced semiconductor technology for the Department of Defense and the money will purchase more efficient manufacturing tools to increase capacity and reduce production time.
BAE Systems’ microelectronics center is a 110,000-square-foot facility that focuses on developing semiconductor technologies for the Department of Defense. The expansion of BAE Systems’ facility will quadruple its chip production capacity for national defense programs, including the F-35 fighter jet program, according to a Department of Commerce release.
The funding is the beginning of the next implementation phase of the 2022 CHIPS and Science Act to strengthen domestic manufacturing, supply chains and national security.
“Microelectronics are at the heart of the technology and products we make for our defense and aerospace customers — from next-generation aircraft and satellites to military-grade GPS and secure communications,” BAE Systems President and CEO Tom Arseneault said in a statement.
“This funding will help modernize our Microelectronics Center and fulfill the promise of the CHIPS and Science Act by increasing our capacity to serve national defense programs, growing our technical workforce, and helping to strengthen the nation’s onshore supply chain,” the CEO added.
New Hampshire’s local and state governments also contributed financial commitments as part of BAE System’s funding application. The state and the city of Nashua are offering workforce incentives through Nashua Community College. Tuition assistance for a college microelectronics bootcamp will also be provided and the Nashua City Council is offering funds to create a new clean room training course.
In October, the Defense Department awarded $238 million to eight locations across the country for the development of microelectronic manufacturing hubs. The money is meant to boost the development of new technologies like 6G and AI hardware.
The Commerce Department released notice of the first funding opportunity under the CHIPS and Sciences Act in February, part of a plan to create semiconductor manufacturing clusters across the U.S. Since then, the Department also released a funding opportunity for smaller semiconductor supply chain projects and expects to launch the National Semiconductor Technology Center in the near future, according to the official release.
More than 550 firms have expressed interest in CHIPS funding thus far, and nearly 150 companies have submitted pre-applications, full applications and concept plans for incentives. More funding is expected to be announced in the coming months, according to the White House.
