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New Hampshire Defense Manufacturer Secures CHIPS Funding in U.S. Push Against China

US Awards $35 Million To Defense Firm BAE In First Chips Grant - Bloomberg US Awards $35 Million To Defense Firm BAE In First Chips (Bloomberg)

The Biden administration has committed to providing BAE Systems with a $35 million boost to strengthen the semiconductor manufacturing industry in the United States, thereby improving both national security and cost efficiency.

$35 Million To Defense Firm BAE In First Chips (Bloomberg)

Biden Administration Allocates $35 Million for BAE Systems in Boost to U.S. Semiconductor Manufacturing

The Biden administration announced its first computer chip manufacture investment on Monday. BAE Systems will receive $35 million to boost production at a New Hampshire factory that makes F-15 and F-35 jet electronics. This is the first distribution of incentives from the bipartisan CHIPS and Science Act, a $52 billion program from last year to boost US semiconductor development and manufacturing.

The statement emphasizes the Biden administration’s commitment to strengthening American semiconductor manufacturing, especially in defense-critical areas. This program will involve BAE Systems, a major military contractor, in producing improved chips for military aircraft. The funding is part of a larger semiconductor scarcity solution and technology resilience strategy.

The bipartisan CHIPS and Science Act recognizes semiconductor manufacturing’s strategic relevance to U.S. competitiveness and security. The large investment intends to boost innovation, R&D, and the nation’s semiconductor position.

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Cost Savings and National Security

Government authorities say that investing in BAE Systems‘ facilities will save taxpayers money. As the company meets benchmarks, the allocated funds will quadruple the plant’s production capacity, halving chip manufacturing costs.

Federal agencies buying chips should save money with this technique. White House national security advisor Jake Sullivan stressed that the increased industrial base protects the U.S. and assists NATO allies and partners in Asia.

READ ALSO: New Hampshire military contractor becomes first plant to get CHIPS funding as U.S. steps up its manufacturing war with China

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