The money will be used to replace aging tools and quadruple the production of chips necessary for critical defence programs including the F-35 fighter jet program.
The Department’s agreement with BAE marks the beginning of the next phase of implementation of the US CHIPS and Science Act.
“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,” says Comnerce Secretary Gina Raimo do, “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.”