The U.S. Department of Commerce finalized two CHIPS Incentives Program awards on November 25, 2024, directing up to $35.5 million to BAE Systems Electronic Systems for its Microelectronics Center in Nashua, New Hampshire, and up to $23.9 million to Rocket Lab — parent company of SolAero Technologies Corp. — for its facility in Albuquerque, New Mexico. Both awards were issued under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities, with disbursement tied to completion of project milestones.
What it means
The BAE Systems award supports modernization of the Nashua Microelectronics Center, a facility designated a Trusted Foundry by the Department of Defense. The company said the investment will quadruple its production capacity for Monolithic Microwave Integrated Circuit chips — components used in advanced military aircraft and commercial satellite systems — and cut the modernization timeline in half compared to what it would have been without the federal funding. The preliminary memorandum of terms for that award was announced December 11, 2023.
The Rocket Lab award supports modernization and expansion of the Albuquerque facility, which produces space-grade solar cells used in the James Webb Space Telescope, NASA’s Artemis program, the Ingenuity Mars Helicopter, and the Mars Insight Lander. Rocket Lab is one of two companies in the United States that specialize in space-grade solar cell production. The company said the investment will increase compound semiconductor production by 50% within three years and is expected to create more than 100 direct jobs. The preliminary memorandum of terms for that award was announced June 11, 2024. Across all CHIPS for America announcements to date, the program has awarded more than $10 billion of the more than $36 billion in proposed incentives funding allocated, spanning 20 states and projected to create more than 125,000 jobs.
Key facts
- $35.5 million — direct CHIPS award to BAE Systems Electronic Systems (up to; milestone-based disbursement)
- $23.9 million — direct CHIPS award to Rocket Lab / SolAero Technologies Corp. (up to; milestone-based disbursement)
- BAE Systems facility: Microelectronics Center, Nashua, New Hampshire; DoD-designated Trusted Foundry
- Rocket Lab facility: Albuquerque, New Mexico
- BAE Systems MMIC chip production capacity to quadruple; modernization timeline cut in half, according to the company
- Rocket Lab compound semiconductor production to increase 50% within three years; 100+ direct jobs expected, according to the company
- CHIPS for America total direct funding awarded to date: more than $10 billion of more than $36 billion in proposed incentives allocated
- Program to date spans 20 states; projected to create more than 125,000 jobs across all announcements
Source: National Institute of Standards and Technology / U.S. Department of Commerce news release (nist.gov)