If you recall, last year in 2022, the United States passed the CHIPS Act, a legislative measure aimed at promoting chip manufacturing on American soil. The essence of this law is for the government to incentivize private companies to invest in chip production through tax credits and direct payments.
Most recently, the US government approved the first round of funding under the CHIPS Act, granting BAE Systems, a UK-based weapons manufacturer (formerly British Aerospace), $35 million to upgrade their Microelectronics Center (MEC) in New Hampshire.
The MEC facility specializes in producing semiconductor chips for the US Department of Defense, such as the chips used in the F-35 fighter jet. This long-established factory is in need of modernization to keep up with advancing technologies, hence the allocation of funds to BAE Systems for this purpose.
The US government has also announced plans to approve additional funding under the CHIPS Act for around 10-12 projects in 2024, some with a value totaling several billion dollars. Notable companies that have applied for support include Intel, Micron, and GlobalFoundries.
The long-term goal of the CHIPS Act is to increase the proportion of chip production in the United States from the current 12% of the global market to 20%.
TLDR: The US government has approved initial funding under the CHIPS Act, granting $35 million to BAE Systems for upgrading their Microelectronics Center in New Hampshire. This is part of a broader initiative to boost American chip manufacturing and increase the country’s global market share.
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