BAE Systems Receives $35 Million Investment to Strengthen Defense Semiconductor Manufacturing

BAE Systems Receives $35 Million Investment to Strengthen Defense Semiconductor Manufacturing

(IN BRIEF) The U.S. Department of Commerce has granted approximately $35 million in initial funding to BAE Systems for the modernization of its Microelectronics Center (MEC) in Nashua, New Hampshire. This funding is part of the CHIPS and Science Act, aimed at enhancing American manufacturing and national security. The MEC is a Department of Defense-accredited facility producing advanced semiconductor technology for military applications. The investment will help BAE Systems acquire efficient manufacturing tools, increase production capacity, and reduce development time. State and local contributions support workforce training. The initiative strengthens the U.S. semiconductor industry, bolsters national security, and benefits non-defense sectors.

(PRESS RELEASE) FARNBOROUGH, 11-Dec-2023 — /EuropaWire/ — BAE Systems (LON: BA), a British multinational defence, security, and aerospace company, is pleased to announce a significant boost in its capabilities with the approval of approximately $35 million in initial funding from the U.S. Department of Commerce. This funding marks a pivotal moment as the first financial allocation under the CHIPS and Science Act, a transformative initiative aimed at enhancing American manufacturing, fortifying supply chains, and reinforcing national security.

Our Microelectronics Center (MEC) located in Nashua, New Hampshire, is set to undergo a transformation that will further bolster our position at the forefront of defense technology. The MEC, spanning an impressive 110,000 square feet, is accredited by the Department of Defense (DoD) and stands as a cutting-edge semiconductor chip fabrication and foundry facility.

At the MEC, we have continually pushed the boundaries of technology, developing advanced semiconductor solutions that surpass commercially available offerings. Our dedication to meeting the demanding requirements of DoD applications has been unwavering. Notably, we are proud to be one of the few domestic defense-centric foundries specializing in six-inch Gallium Arsenide (GaAs) and Gallium Nitride (GaN) High Electron Mobility Transistor (HEMT) wafer production.

Tom Arseneault, President and CEO of BAE Systems, Inc., commented on this landmark development, stating, “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. 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. This initiative is the result of a strong partnership with federal, state, and local government.”

“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 U.S. 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.”

The funding allocation has been made possible through the collaborative efforts of various stakeholders, including state and local commitments. The state of New Hampshire and the City of Nashua are providing workforce incentives through Nashua Community College (NCC). These incentives encompass tuition assistance for NCC’s microelectronics boot camp and funding from the Nashua City Council to establish a new clean room training course at NCC.

U.S. Senator Jeanne Shaheen, chair of the U.S. Senate Appropriations Subcommittee that funds the Department of Commerce, expressed her support, stating, “This critical funding from the CHIPS and Science Act—which I was proud to help pass—will help BAE Systems’ Microelectronics Center in Nashua modernize their facility and ensure our military continues to have access to American-made semiconductor technology. These modernization efforts will strengthen New Hampshire’s integral role in the nation’s defense manufacturing industry for years to come.”

“New Hampshire is a hub for innovation-based businesses and entrepreneurs,” said U.S. Senator 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.”

This funding aligns seamlessly with the goals of the CHIPS and Science Act, which seeks to enhance national security, reinforce domestic supply chains, and stimulate long-term economic growth. It reiterates BAE Systems’ commitment to advancing technological innovation and supporting the nation’s defense capabilities.

Congresswoman Annie Kuster echoed these sentiments, stating, “I’m thrilled to see these resources from the CHIPS and Science Act heading to BAE Systems in Nashua. When we passed this legislation in 2022, this is exactly the kind of project we envisioned. I look forward to seeing the modernized Microelectronics Center and the positive impact it will have on our state, our economy, and our national security.”

Congressman Chris Pappas emphasized the broader implications, stating, “I’m thrilled BAE Systems has received this funding to modernize their microelectronics facility. 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. I remain committed to supporting our local manufacturers and workforce so that New Hampshire remains a great place to live and work.”

“Our world-class high-tech manufacturers located here in New Hampshire help lead one of the most vibrant state economies in the country,” said New Hampshire Department of Business and Economic Affairs (BEA) Commissioner Taylor Caswell. “Not only is BAE Systems an international powerhouse and our largest employer in this space, but they are also a true team player right here in New Hampshire. I could not be happier for them to be recognized by the Department of Commerce through this impressive funding.”

“I believe BAE Systems’ project is exactly why the CHIPS Act was enacted. The CHIPS Act provides funding we can leverage to create good high-paying jobs within the semiconductor industry,” said Jim Donchess, Mayor of Nashua, New Hampshire. “Thank you to Lucille Jordan at the Nashua Community College for partnering with BAE Systems to implement a workforce-training program within this burgeoning industry. I am grateful to our Federal Congressional delegation for their leadership on this project and Nashua’s Board of Aldermen for committing local funding to help bring this project to fruition.”

The $35 million funding, combined with our ongoing investments in modernization and research and development, will enable us to acquire state-of-the-art manufacturing tools. These tools will mitigate supply chain risks, enhance production capacity, and expedite product development. This increased efficiency will empower BAE Systems to scale up production to meet the growing demand for DoD technology while also delivering critical microelectronics to non-defense sectors, including satellite communications and the test and measurement equipment markets.

In conclusion, this funding announcement is a testament to our commitment to advancing semiconductor technology within the United States. It underscores our unwavering dedication to fortifying national defense capabilities, strengthening domestic industries, and contributing to the nation’s technological advancement.

Media contact:

Veronica Bonilla
Director, Media Relations
BAE Systems, Inc. Communications
Mobile: +1 571 488 0456

SOURCE: BAE Systems