New Hampshire's Microelectronics Center Wins $35 Million Through CHIPS Act
December 12, 2023 | U.S. Department of CommerceEstimated reading time: 3 minutes
The Microelectronics Center upgrades will increase on-shore technology development to benefit national defense.
The Biden-Harris Administration announced that the U.S. Department of Commerce and BAE Systems Electronic Systems, a business unit of BAE Systems, have signed a non-binding preliminary memorandum of terms (PMT) to provide approximately $35 million in federal incentives under the CHIPS and Science Act to support the modernization of the company’s Microelectronics Center, a mature-node production facility in Nashua, New Hampshire. The project will replace aging tools and quadruple the production of chips necessary for critical defense programs including the F-35 fighter jet program.
The Department’s PMT with BAE Systems marks the beginning of the next phase of implementation of the CHIPS and Science Act, a key part of President Biden’s Investing in America agenda.
“We have been clear since day one that the CHIPS for America Program is about advancing our national security and strengthening domestic supply chains, all while creating good jobs supporting long-term U.S. economic growth. As national security becomes as much about the chips inside of our weapons systems as the weapons systems themselves, this first CHIPS announcement shows how central semiconductors are to our national defense,” said Secretary of Commerce Gina Raimondo. “Thanks to President Biden’s Investing in America agenda, we have reached preliminary terms to make a substantial investment in New Hampshire’s expanding defense industrial base, which will help make our country and supply chains more secure and bolster the economy of the Granite State.”
“This announcement delivers on President Biden’s commitment to restoring American leadership on semiconductors, advancing our national security, and creating good family-sustaining jobs here in New Hampshire and around the country,” said Director of the National Economic Council Lael Brainard.
“This announcement of the PMT with BAE Systems demonstrates our vision for the CHIPS for America program to ensure that we have a robust production capacity for the chips vital to U.S. national security,” said Under Secretary of Commerce of Commerce for Standards and Technology Dr. Laurie E. Locascio. “This is the first of many announcements that will enhance our nation’s manufacturing capacity and create new jobs and opportunities in communities across the country.”
“Microelectronics are at the heart of the technology and products we make for our defense and aerospace customers—from next-generation aircraft and satellites to military-grade GPS and secure communications,” said Tom Arseneault, president and CEO of BAE Systems. “This funding will help modernize our Microelectronics Center and fulfill the promise of the CHIPS and Science Act by increasing our capacity to serve national defense programs, growing our technical workforce, and helping to strengthen the nation’s onshore supply chain. This initiative is the result of a strong partnership with federal, state, and local government.”
As explained in the Department’s first Notice of Funding Opportunity, the Department may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a CHIPS incentives award, including the amount and form of the award. After the PMT is signed, the Department begins a comprehensive due diligence process on the proposed project and other information contained in the application. After satisfactory completion of the due diligence phase, the Department may enter into final award documents with the applicant. Terms of the final award documents are subject to negotiations with the applicant and may differ from the terms of the PMT.
President Biden signed the bipartisan CHIPS and Science Act into law in August 2022, which is a critical part of revitalizing American semiconductor manufacturing to create jobs, strengthen supply chains, protect national security, and advance U.S. competitiveness.
In a little more than a year since the CHIPS Act was signed into law, the Department has moved quickly to create the CHIPS Program Office and the CHIPS R&D Office and has built a team that represents decades of experience across industry and government. In February 2023, the Department released the first Notice of Funding Opportunity for commercial manufacturing facilities, and then opened it to include large supply chain projects. The Department also released a Notice of Funding Opportunity for smaller semiconductor supply chain projects and expects to launch the National Semiconductor Technology Center (NSTC) in the near future.
Suggested Items
Biden-Harris Administration to Invest $825 Million in First CHIPS for America R&D Facility
11/01/2024 | U.S. Department of CommerceThe Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced the expected location for the first CHIPS for America research and development (R&D) flagship facility. The CHIPS for America Extreme Ultraviolet (EUV) Accelerator, an NSTC facility (EUV Accelerator), is expected to operate within NY CREATES’ Albany NanoTech Complex in Albany, New York, supported by a proposed federal investment of an estimated $825 million. The EUV Accelerator will focus on advancing state of the art EUV technology and the R&D that relies on it.
Biden-Harris Administration Designates Albany NanoTech as First CHIPS for America R&D Flagship
10/31/2024 | U.S. Department of CommerceThe Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced the expected location for the first CHIPS for America research and development (R&D) flagship facility.
NY Lands First National Semiconductor Facility
10/31/2024 | Governor Kathy HochulGovernor Kathy Hochul celebrated the designation of NY CREATES’ Albany NanoTech Complex as the location of the CHIPS for America EUV Accelerator, an NSTC facility.
Flexible Thinking: Musings on High Density Interconnections
10/30/2024 | Joe Fjelstad -- Column: Flexible ThinkingPeople have been using high density interconnection (HDI) technology since the early 1980s, although it was not called HDI until the late 1990s. In the 1970s, ’80s, and early ’90s, engineers used HDI methods to develop hybrid circuits, which were later referred to as multichip modules (MCMs). These were arguably the first instantiation of heterogeneous interconnection technology, which has been the industry buzzword for almost a decade. These devices are a way of integrating multiple chips—both integrated circuits and discrete devices (resistors, capacitors, and inductors)—into a single package, typically using ceramic substrates with layers of insulation and metallic inks (often gold) and firing them at high temperatures.
SIA Applauds CHIPS Incentives for Hemlock Manufacturing Expansion in Michigan
10/22/2024 | SIAThe Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Department of Commerce and Hemlock Semiconductor (HSC).