Boosting the Chip Industry: U.S. Allocates $60 Million in Subsidies

The U.S. Commerce Department is finalizing $60 million in subsidies for BAE Systems and Rocket Lab to enhance chip and semiconductor production used in defense and space technologies. The funding aims to increase production and support crucial U.S. military and space programs, expediting technological advancements.

The U.S. Commerce Department announced nearly $60 million in government subsidies for BAE Systems and Rocket Lab to advance chip and semiconductor production for jets and satellites.

BAE is set to receive $35.5 million to increase chip production for F-35 fighter jets and satellites in New Hampshire, halving their modernization timeline. Meanwhile, Rocket Lab will receive $23.9 million to expand solar cell production by 50%, supporting significant U.S. space programs.

The initiatives are part of the Biden administration's $52.7 billion 'Chips and Science' program, aiming to secure technological superiority before the incoming administration. Recent awards include $6.6 billion to Taiwan Semiconductor Manufacturing Co's U.S. unit and $1.5 billion to GlobalFoundries.

(With inputs from agencies.)