Defence and aerospace company BAE Systems has received $35m from the US Department of Commerce as part of the US Chips for America funding scheme.
The US CHIPS act, passed in August 2022, saw the Biden administration pledge $280bn to bolster US domestic semiconductor capacity and R&D, as well as improving the country’s STEM workforce.
The $35m investment will go towards BAE System’s F-35 Fighter Jet research program.
The money is intended to modernise the equipment used by BAE Systems and aims to quadruple the number of chips BAE can manufacture.
“The CHIPS for America Program is about advancing our national security and strengthening domestic supply chains, all while creating good jobs supporting long-term US economic growth,” US Secretary of Commerce Gina Raimondo stated.
Raimondo commented that chips were central to US national security and stated that the investment signified the next phase of the 2022 CHIPS and Science Act.
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The US has consistently released legislation controlling the movement of sensitive technologies in and out of China, as well as recently publishing a blanket ban on all US investment towards Chinese technology.
The US has cited national security concerns as primary motives behind these controls.
China has refuted these concerns several times, stating that US legislations and bans are a deprivation of China’s right to its own economic development.
Data and analyst company GlobalData forecast that the overall semiconductor industry is worth over $800bn globally, having grown at a CAGR of 8% between 2017 and 2022.