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BAE Systems, Inc. (New Hampshire)
Key Facts
Project Summary
The Department of Commerce awarded BAE Systems Electronic Systems, a business unit of BAE Systems, Inc., up to $35.5 million in direct funding to support the modernization of the company’s Microelectronics Center in Nashua, New Hampshire, which is designated as a Trusted Foundry by the U.S. Department of Defense. The investment will contribute to a more resilient semiconductor supply chain in the United States and bolster the company’s ability to serve mission-critical U.S. defense programs.
Economic and National Security Impact
BAE Systems Electronic Systems’ Microelectronics Center (MEC) in Nashua, New Hampshire, is a mature-node semiconductor facility that produces Monolithic Microwave Integrated Circuit (MMIC) chips, which are critical components for advanced military aircraft and commercial satellite systems. When installed in a military system, such as front-line fighter aircraft, MMICs allow the system’s computers to interact with the electromagnetic (e.g., radio) environment around the aircraft. These interactions serve military purposes and drive mission outcomes when engaging with adversaries.
As a result of the modernization of the MEC supported by the CHIPS award, the company will quadruple its production capacity for MMIC chips, and replace aging tools with latest technology and equipment, mitigating the risk of an operational disruption in the event of a tool breakdown. The investment will also cut the company’s planned modernization timeline in half, bolstering the facility's ability to serve mission-critical defense programs. As a result of the investment, the project is now expected to be completed by approximately 2028.
The Department’s investment will advance U.S. economic and national security, largely due to the importance of the MEC to U.S. defense programs. Specifically, it is the key source of chips for a significant portion of U.S. military aircraft programs. As a result of the CHIPS award and the expedited timeline of the modernization, the company will be better positioned to meet the current and future demand from the U.S. Department of Defense. Because the MEC is a DoD-accredited source for the specific high-performing MMICs that are produced at the facility, the expansion of capacity at the MEC will be beneficial for U.S. national security.
In addition to U.S. defense programs, the CHIPS award will also support the MEC’s capacity to serve commercial customers, particularly in the satellite communications and test and measurement sectors, which would further enhance U.S. economic resilience and security.
Project Statistics: BAE Systems, Inc. | ||
|---|---|---|
Project Summary | Recipient | BAE Systems, Inc. |
| Location(s) | Nashua, New Hampshire | |
| Estimated Job Creation | Up to 24 facility jobs | |
Financial Summary | Program | CHIPS Program Office |
| Direct Funding Amount | Up to $35.5 million | |
| Expected Capital Expenditure | $105 million | |
Facility Summary | Project Type | Modernization of Microelectronics Center, a mature-node facility |
| Technology | Monolithic Microwave Integrated Circuit (MMIC) chips, which are critical components for advanced military Aircraft and commercial satellite systems | |
| Project Timeline | Completion by 2028 | |
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