Dive Brief:
- The Biden-Harris administration finalized two CHIPS and Science Act funding awards on Monday for BAE Systems and Rocket Lab, according to a Commerce Department press release.
- BAE Systems was awarded up to $35.5 million to modernize its Nashua, New Hampshire, facility, quadrupling production of its advanced chips for military and satellite applications.
- Meanwhile, Rocket Lab received up to $23.9 million to expand its Albuquerque, New Mexico, facility, boosting production of space-grade solar cells by 50% over three years.
Dive Insight:
The Commerce Department said it will disburse the funds based on the companies’ completion of project milestones, though what those milestones are or when they are slated for completion has not been disclosed.
BAE Systems was the first CHIPS Act award announced by the Biden administration on Dec. 11, 2023. The monolithic microwave integrated circuit chips will help critical components for advanced military aircraft and commercial satellite systems, according to the agency release.
The defense aerospace company is also expediting its facility modernization timeline by half, the release stated.
Rocket Lab’s expansion, first announced on June 11, will further missile technology to serve the growing commercial satellite market. The investment is expected to create over 100 jobs, according to the release.
“From satellites in space to defense systems on the ground, our most advanced defense and commercial technology rely on mature-node and compound semiconductors to operate,” National Institute of Standards and Technology Director Laurie Locascio said in a statement.
The two awards, along with an award finalization for Intel announced Tuesday, bring the count of finalized CHIPS investments to six. Earlier this month, the Biden administration finalized GlobalFoundries’ $1.5 billion award as well as Taiwan Semiconductor Manufacturing Co.’s $6.6 billion award.
The administration is pushing to finalize awards for the remaining 18 companies set to receive funding ahead of President-elect Donald Trump’s upcoming term in January. The decision of whether the CHIPS Act will continue aiding semiconductor companies is unclear as Trump has previously expressed disdain for the federal subsidies.
