BAE Systems Is Recipient of First CHIPS Act Funding Award

BAE Systems has received an approximately $35 million award from the U.S. Department of Commerce to modernize its Microelectronics Center (MEC) in Nashua, N.H. The award is the first funding announcement as part of the CHIPS and Science Act, which was designed to strengthen American manufacturing, supply chains, and national security. The legislation became law last year.

BAE Systems’ MEC is a 110,000-sq-ft U.S. Department of Defense-accredited, semiconductor chip fabrication and foundry facility that develops advanced semiconductor technologies beyond those available commercially to meet demanding military requirements. It is one of the only domestic defense-centric 6-in. gallium arsenide and gallium nitride high electron mobility transistor wafer foundries.

In a statement, U.S. President Joe Biden said that once finalized, the investment will quadruple the facility’s production capacity for chips essential to national security applications, including for use in F-35 fighter jets produced in Nashua. Tom Arseneault, president and CEO of BAE Systems, said that the funding will additionally increase BAE Systems’ capacity to grow its technical workforce and strengthen domestic supply chains.

Further, BAE said, the increased efficiency resulting from the funding, which BAE said it will couple with ongoing investment, will enable a scale-up in production to meet increasing demand for Department of Defense technology and provide critical microelectronics to nondefense industries and markets. These include satellite communications and test and measurement equipment.

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Published: December 2023

Glossary

metrology: Metrology is the science and practice of measurement. It encompasses the theoretical and practical aspects of measurement, including the development of measurement standards, techniques, and instruments, as well as the application of measurement principles in various fields. The primary objectives of metrology are to ensure accuracy, reliability, and consistency in measurements and to establish traceability to recognized standards. Metrology plays a crucial role in science, industry,...
lithography: Lithography is a key process used in microfabrication and semiconductor manufacturing to create intricate patterns on the surface of substrates, typically silicon wafers. It involves the transfer of a desired pattern onto a photosensitive material called a resist, which is coated onto the substrate. The resist is then selectively exposed to light or other radiation using a mask or reticle that contains the pattern of interest. The lithography process can be broadly categorized into several...
gallium nitride: Gallium nitride (GaN) is a compound made up of gallium (Ga) and nitrogen (N). It is a wide-bandgap semiconductor material that exhibits unique electrical and optical properties. Gallium nitride is widely used in the production of various electronic and optoelectronic devices, including light-emitting diodes (LEDs), laser diodes, power electronics, and high-frequency communication devices. Key points about gallium nitride (GaN): Chemical composition: Gallium nitride is a binary compound...

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