To accelerate semiconductor production for jets and solar cell manufacturing, the US Commerce Department is set to award $60 million in subsidies to BAE Systems and Rocket Lab.
On Monday, the US Commerce Department announced that it is in the final stages of approving nearly $60 million in government subsidies for semiconductor company BAE Systems and solar equipment producer Rocket Lab.
BAE Systems is set to receive $35.5 million to increase production of critical semiconductor chips in its New Hampshire facility, which are used in F-35 fighter jets and commercial satellites. The chips are essential for both the F-15 and F-35 aircraft. This funding will help the company reduce its modernisation timeline by 50%.
Additionally, Rocket Lab’s subsidiary SolAero Technologies Corp will be allocated $23.9 million to boost its solar cell production by 50% over the next three years. Rocket Lab, established in 2006 by Peter Beck from New Zealand, is one of only two US companies producing highly efficient, radiation-resistant space-grade solar cells.
These solar cells are used in various US space programmes, including missile detection systems, the James Webb Space Telescope, NASA’s Artemis lunar missions, and Mars missions like the Ingenuity Helicopter and Insight Lander.
Commerce Secretary Gina Raimondo shared with Reuters that the department is working to finalise as many agreements as possible under the Biden administration’s $52.7 billion CHIPS and Science programme before the incoming administration of President-elect Donald Trump takes office.
Earlier this month, the department completed its first significant award, providing $6.6 billion to Taiwan Semiconductor Manufacturing Co.’s US branch. Additionally, last week, a $1.5 billion subsidy was approved for GlobalFoundries to expand its semiconductor production in Malta, New York, and Vermont.
