The U.S. Department of Commerce’s (DoC) CHIPS and Science Act continues to finalize some of the direct funding deals that were announced in the past two years with satellite and spacecraft vendors BAE Systems and Rocket Lab being the latest.
BAE Systems was the first company to receive direct funding through an agreement with the DoC back in December of 2023. The $35.5 million in direct funding will allow the defense contractor to modernize its microelectronics Center in Nashua, New Hampshire. Specifically, the funding will help to:
- Quadruple monolithic microwave integrated circuit (MMIC) production capacity
- Replace aging tools
- Cut modernization time in half
- Bolster mission-critical defense programs
Rad-hard semiconductors
Meanwhile, Rocket Lab came to an agreement with the DoC in June to help expand production of compound semiconductors for spacecraft and satellites. Additionally, the funding will fund an expansion and modernization of Rocket Lab’s facility in Albuquerque, New Mexico.
The $23.9 million direct funding will help Rocket Lab to create a more resilient space-grade solar cell for spacecrafts and satellites. Rocket Lab is just one of two companies in the U.S. that manufactures these rad-hard compound semiconductors that convert light into electricity in space.
Not surprisingly, these chips are critical in U.S. space programs like missile awareness system and space-based science missions, such as:
- James Webb Space Telescope
- NASA’s Artemis program
- The Ingenuity Mars Helicopter
- The Mars Insight Lander
Under the deal with the DoC, the investment will modernize and expand its Albuquerque, New Mexico facility. The company expects to increase the production of compound semiconductors by 50% in the next three years.
Packaging project
Additionally, through the CHIPS Act, the DOC has entered into negotiations to invest up to $300 million for advanced packaging research projects in Georgia, California and Arizona. This investment will help to develop next-generation packaging technologies.
The recipients are expected to be:
- Absolics Inc. in Georgia
- Applied Materials in California
- Arizona State University in Arizona
