BAE Systems, a leading U.K. defense-and-aerospace group, has announced that the U.S. Department of Commerce will invest approximately $35 million in initial funding for the modernization of its microelectronics center in Nashua, New Hampshire.
This funding comes as part of the CHIPS and Science Act, a legislation aimed at bolstering U.S. semiconductor manufacturing, supply chains, and national security. The investment will enable BAE Systems to acquire state-of-the-art manufacturing tools, enhancing their ability to manage supply chain risks, increase production capacity, and reduce product development timelines.
BAE Systems highlighted that their microelectronics center is accredited by the U.S. Department of Defense and specializes in producing advanced technology for defense applications that comply with rigorous military requirements.
Moreover, the company emphasized that the enhanced efficiency resulting from this modernization initiative will enable them to ramp up production and meet the growing demand for defense technology. In addition, BAE Systems aims to utilize their microelectronics capabilities to serve non-defense industries such as satellite communications, as well as the test and measurement equipment markets.
At 1350 GMT, BAE Systems’ shares were trading slightly lower at 1,041.50 pence.