US Government Accelerates Chipmaking Grants, Boosting Defense Suppliers and Warning of Possible Delays

The Biden administration's first CHIPS Act grant of $35 million to BAE Systems' semiconductor plant in Nashua, New Hampshire, is expected to quadruple the city's chipmaking output for defense technologies, including those used in F-35 fighter jets. The funding will also jump-start workforce upskilling, providing training for higher-paying jobs. While chipmaking is highly automated and doesn't require vast workforces, the grant will lead to incremental job growth. The modernization of BAE's microelectronics center will enhance the nation's ability to provide situational awareness and survivability for defense technologies. The grant is part of the government's efforts to tighten domestic control of supply chains for sensitive tools.