The U.S. Department of Commerce awarded $35 million in federal incentives under the CHIPS and Science Act to BAE Systems Electronic Systems to support the modernization of the company’s Microelectronics Center, a mature-node production facility in Nashua, New Hampshire.
This is the first grant issued under the CHIPS and Science Act.
The project will replace aging tools and quadruple the production of chips necessary for critical defense programs including the F-35 fighter jet program.
“We have been clear since day one that the CHIPS for America Program is about advancing our national security and strengthening domestic supply chains, all while creating good jobs supporting long-term U.S. economic growth. As national security becomes as much about the chips inside of our weapons systems as the weapons systems themselves, this first CHIPS announcement shows how central semiconductors are to our national defense,” said Secretary of Commerce Gina Raimondo. “Thanks to President Biden’s Investing in America agenda, we have reached preliminary terms to make a substantial investment in New Hampshire’s expanding defense industrial base, which will help make our country and supply chains more secure and bolster the economy of the Granite State.”
