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The US Department of Commerce has announced US$35 million (AU$53.3 million) in initial funding for BAE Systems to modernise the Microelectronics Center (MEC) in New Hampshire as part of the CHIPS and Science Act.
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BAE Systems’ Microelectronics Center (MEC) is a 110,000-square-foot, Department of Defense (DOD)-accredited semiconductor chip fabrication and foundry facility that produces technology for DOD applications.
The MEC develops advanced semiconductor technologies beyond those available commercially to meet demanding military requirements and is one of the only domestic defence-centric six-inch gallium arsenide (GaAs) and gallium nitride (GaN) high electron mobility transistor (HEMT) wafer foundries in the United States.
This round of funding marks the first major funding announcement as part of the Biden Administration’s CHIPS and Science Act, which is designed to strengthen American manufacturing, supply chains, and national security.
Tom Arseneault, president and chief executive of BAE Systems, welcomed the announcement, saying: “Microelectronics are at the heart of the technology and products we make for our defence and aerospace customers – from next-generation aircraft and satellites to military-grade GPS and secure communications.”
The proposed modernisation of BAE’s Microelectronics Center helps support this vision and the continued development and manufacturing of cutting-edge technology to serve customers’ missions.
“This funding will help modernise our Microelectronics Center and fulfil the promise of the CHIPS and Science Act by increasing our capacity to serve national defence programs, growing our technical workforce, and helping to strengthen the nation’s onshore supply chain. This initiative is the result of a strong partnership with federal, state, and local government,” Arseneault added.
Local and state commitments contributed to the funding application; both the state of New Hampshire and the City of Nashua are offering workforce incentives through Nashua Community College (NCC).
The state of New Hampshire will provide tuition assistance for NCC’s microelectronics boot camp, and the Nashua City Council is providing funds to establish a new clean room training course at NCC.
US Senator Jeanne Shaheen, chair of the US Senate appropriations subcommittee that funds the Department of Commerce, said: “This critical funding from the CHIPS and Science Act – which I was proud to help pass – will help BAE Systems’ Microelectronics Center in Nashua modernise their facility and ensure our military continues to have access to American-made semiconductor technology.”
These comments were reflected by New Hampshire Senator Maggie Hassan, who added: “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 modernising 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.
The approximately US$35 million (AU$53.3 million) in funding will be coupled with ongoing investment in modernisation and R&D by BAE Systems. This funding will help purchase new, more efficient manufacturing tools to mitigate supply chain risk, increase production capacity, and reduce the time to build products.
The increased efficiency will enable a scale-up in production to meet increasing demand for DOD technology and provide critical microelectronics to non-defence industries, including satellite communications and test and measurement equipment markets.
