WASHINGTON: The US announced US$35 million worth of federal incentives under the Chips and Science Act to support the modernisation of BAE Systems' Microelectronics Centre, and to quadruple its production capacity for chips that are essential to US national security, including for use in F-35 fighter jets.
The Department of Commerce and BAE Systems Electronic Systems have signed a non-binding preliminary memorandum of terms (PMT), the agency said, reported dpa news.
This is the first funding announcement as part of the Chips and Science Act, which was designed to strengthen US manufacturing, supply chains, and national security.
BAE Systems' manufacturing site in Nashua, New Hampshire, is a Department of Defence-accredited, semiconductor chip fabrication and foundry facility that produces technology for defence applications.
The British multinational arms, security, and aerospace company said the US$35 million in funding will be coupled with ongoing investment in modernisation and R&D.
The funding will help purchase new, more efficient manufacturing tools to mitigate supply chain risk, increase production capacity, and reduce time-to-build products, it said.
The increased efficiency will enable a scale-up in production to meet increasing demand for Department of Defence technology and provide critical microelectronics to non-defence industries including satellite communications, and test and measurement equipment markets.–BERNAMA