Reinvigorating U.S. Semiconductor Supply: BAE Systems, Rocket Lab Lead the Way

The U.S. semiconductor industry is poised for a significant boost, as the Department of Commerce recently finalized substantial awards to BAE Systems and Rocket Lab. These investments, totaling nearly $60 million, aim to strengthen America's domestic semiconductor supply chain, bolster national security, and foster economic competitiveness.

BAE Systems, a leading defense and aerospace company, has been awarded up to $35.5 million. This funding will modernize the company's Microelectronics Center in Nashua, New Hampshire. The upgrade will enable BAE Systems to quadruple its production capacity for Monolithic Microwave Integrated Circuit (MMIC) chips, critical components for advanced military aircraft and commercial satellite systems. The investment will also replace aging tools with the latest technology, mitigating operational disruption risks and halving the company's modernization timeline. This expansion will significantly enhance BAE Systems' ability to serve mission-critical defense programs and create more than 100 direct jobs in New Hampshire.



Rocket Lab, a global leader in launch services and space systems, has received up to $23.9 million. This investment will create a more robust and resilient supply of space-grade solar cells, powering spacecrafts and satellites. Rocket Lab specializes in producing highly efficient and radiation-resistant compound semiconductors called space-grade solar cells, which are key to important U.S. space programs. The modernization and expansion project will increase the company's compound semiconductor production by 50% within the next three years, helping to meet the growing national security and commercial demand for these solar cells in the United States. This investment is expected to create over 100 direct jobs in Albuquerque, New Mexico.



These investments come at a critical time, as the global semiconductor market grapples with supply chain disruptions and geopolitical tensions. By increasing domestic production capacity, BAE Systems and Rocket Lab will help mitigate these challenges, strengthening America's technological superiority in defense and commercial industries. Furthermore, these companies' growth strategies address the increasing national security and commercial demand for their respective products, ensuring a steady supply of critical components for various industries.

In conclusion, the U.S. finalizing awards to BAE Systems and Rocket Lab for semiconductor chip production is a strategic move to bolster domestic supply chain resilience and national security. These investments not only enhance America's domestic semiconductor manufacturing capabilities but also attract high-tech jobs and manufacturing capabilities to the U.S., solidifying the country's edge in advanced semiconductor technology. As the global semiconductor market continues to evolve, these investments will play a crucial role in maintaining the U.S.'s competitive advantage in defense and commercial industries.