After completing due diligence, the US Department of Commerce has finalized two direct funding awards under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities (following the preliminary memoranda of terms, announced on 11 December 2023 and 11 June 2024 respectively):
The first is the funding of up to $35.5m for BAE Systems Electronic Systems (a business unit of BAE Systems Inc, which develops and services electric propulsion technology at its facilities in Endicott, NY, USA and Rochester, UK) to support the modernization of its 110,000 ft2 Microelectronics Center (MEC) in Nashua, New Hampshire. This is one of few US-based defense-centric six-inch gallium arsenide (GaAs) and gallium nitride (GaN) high-electron-mobility transistor (HEMT) wafer foundries and is accredited by the Department of Defense (DoD), developing semiconductor technologies beyond those available commercially in order to meet demanding military requirements. The CHIPS funding will enable the firm to quadruple its production capacity for monolithic microwave integrated circuit (MMIC) chips (which are critical components for advanced military aircraft and commercial satellite systems) and replace aging tools with the latest technology and equipment (mitigating the risk of an operational disruption). The investment will also cut the firm’s modernization timeline in half, bolstering the facility’s ability to serve mission-critical defense programs.
The second is funding of up to $23.9m for Rocket Lab (the parent company of space power provider SolAero Technologies Corp) to create a more robust and resilient supply of space-grade solar cells that power spacecraft and satellites. Rocket Lab is one of two companies in the USA that specialize in the production of highly efficient and radiation-resistant compound semiconductor space-grade solar cells. Rocket Lab’s are key to US space programs such as missile awareness systems and science missions, including the James Webb Space Telescope, NASA’s Artemis program, the Ingenuity Mars Helicopter, and the Mars Insight Lander. Rocket Lab’s technology also serves a growing commercial satellite market. The funding will support the modernization and expansion of Rocket Lab’s facility in Albuquerque, NM, which will increase the company's compound semiconductor production by 50% within the next three years – helping to meet the growing national security and commercial demand for these solar cells in the USA. The investment is expected to create over 100 direct jobs.
“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,” says Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology director Laurie E. Locascio. “By finalizing these awards, we are strengthening America’s domestic semiconductor supply chain resilience and broadening our manufacturing capabilities.”
“America's space and military systems are the most capable in the world, and that would not be possible without advanced semiconductor technology,” says Arati Prabhakar, assistant to the President for Science and Technology and director of the White House Office of Science and Technology Policy. “We’re making the semiconductor supply chain investments today that will bolster American global competitiveness and security tomorrow,” she adds.
“This investment marks a significant step forward for the modernization of our Microelectronics Center, enhancing our national security,” comments Cheryl Paradis, VP & general manager of FAST Labs at BAE Systems Inc. “We remain committed to driving innovation, developing a highly skilled workforce, and ensuring that the US maintains its edge in the critical aerospace and defense industry,” she adds.
“This award will help to ensure US leadership in compound semiconductor manufacturing capability while reinforcing Rocket Lab’s position as a leader in space-grade solar cell production,” says Brad Clevenger, VP of Rocket Lab Space Systems. “The investment will enable Rocket Lab to expand production, create highly skilled manufacturing jobs and generate economic and workforce development activity in New Mexico.”
As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America is disbursing direct funding to recipients for capital expenditures based on the completion of project construction, production and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.
Click here to learn more about BAE Systems.
Click here to learn more about Rocket Lab.
