On August 9, 2022, Pres. Biden signed the “CHIPS and Science Act” into law. This will be one of the largest investments, nearly $280 billion, in technology research and development in our nation’s history. In a nutshell, this law will protect access to semiconductors which are used in the manufacture of everyday products such as refrigerators and vehicles. It will also ascertain more domestically made semiconductors are readily available for our military. Currently 90% of semiconductors are made in Taiwan. Also included is $39 billion in subsidies to domestically manufacture chips.
Now for the NH part. . .
BAE Systems in Nashua is located in a 110,000 square foot Microelectronics Center (MEC) which produces technology for the Dept. of Defense (DoD). This is just one of the US subsidiaries of BAE Systems an international aerospace, defense and security company with services and products for air, land and naval forces. They also offer advanced electronics, security and customer support services.
Thirty-five million dollars in federal funding has recently been earmarked to update the MEC building, which develops advanced semiconductor technology. This funding will also go towards purchasing newer and more efficient manufacturing tools, increasing their technical personnel, production capacity and ability to provide national defense programs. Additionally, the country’s onshore supply chain will be made stronger. Demand has also increased for microelectronics to industries such as satellite communications which will now have the ability to be met.
As of this writing BAE now needs to submit to a comprehensive due diligence process and a final negotiation process over its terms before the agreement is finalized.
In the meantime, thank you Pres. Biden for recognizing our nation’s need to move forward by bringing manufacturing opportunities not just to NH, but to the nation as a whole!