BAE Systems to receive $35 million through federal CHIPS and Science Act
BAE Systems in Nashua will receive millions in federal funding intended to advance national security and strengthen domestic supply chains, officials announced.
On Monday, the U.S. Department of Commerce said it plans to award BAE Systems $35 million to quadruple production at the company’s Microelectronics Center in Nashua of semiconductor chips used in F-35 fighter jets.
The funding is being awarded through the $52.7 billion “Chips for America” semiconductor manufacturing and research subsidy program, which Congress approved in August 2022 to increase chips production in the U.S. over concerns about reliance on Asia.
“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,” said Secretary of Commerce Gina Raimondo in a statement. “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.”
President Joe Biden said in a statement, “Over the coming year, the Department of Commerce will award billions more to make more semiconductors in America” and boost research and development.
“America invented semiconductors — the computer chips that are the size of the tip of your finger and power everything from cell phones to cars to our most advanced weapons systems and satellites,” Biden said in a statement.
Over time, Biden said, the U.S. went from producing nearly 40% of the world’s chips to just over 10%, which undermined America’s national security and made the economy vulnerable to global supply chain disruptions.
Tom Arseneault, president and CEO of BAE Systems, said the initiative is a result of “a strong partnership with federal, state, and local government.”
“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,” Arseneault said in a statement.
All four members of the state’s congressional delegation praised the announcement, calling the funding “critical.”
“These modernization efforts will strengthen New Hampshire’s integral role in the nation’s defense manufacturing industry for years to come,” said Sen. Jeanne Shaheen.
‘Hub for innovation’
“New Hampshire is a hub for innovation-based businesses and entrepreneurs,” said Sen. Maggie Hassan. “We worked to pass the CHIPS and Science Act to build a stronger economy and protect our national security, and the agreement announced today on modernizing BAE Systems’ Microelectronics Center in Nashua is a yet another way this law will ensure that the United States remains a global leader in advanced technology.”
“On-shoring our production of semiconductors and new investments in technology development strengthen our national defense, all while creating good paying jobs in New Hampshire’s growing tech industry,” said U.S. Rep. Chris Pappas.
The Pentagon plans to spend $1.7 trillion on the F-35 program over the lifetime of the plane, including the purchase of 2,500 aircraft. BAE employs about 6,600 workers in the Granite State at locations in Hudson, Merrimack, Manchester and Nashua.