Today: March 02, 2024
Today: March 02, 2024

Biden administration says New Hampshire computer chip plant the first to get funding from CHIPS law

Share This
Biden administration says New Hampshire computer chip plant the first to get funding from CHIPS law
AP
JOSH BOAK
December 11, 2023

WASHINGTON (AP) — The Biden administration announced the first of many coming federal investments in computer chip production, saying Monday that it would provide $35 million for BAE Systems to increase production at a New Hampshire factory making chips for military aircraft, including F-15 and F-35 jets.

This would be the initial allocation of incentives from last year's bipartisan CHIPS and Science Act, which provides more than $52 billion to boost the development and manufacturing of semiconductors in the United States.

The Commerce Department's choice of a military contractor instead of a conventional chip manufacturer reveals the national security focus of the law, as more and more weapons systems depend on advanced chips that could be decisive in both preventing and fighting wars.

“We can’t gamble with our national security by depending solely on one part of the world or even one country for crucial advanced technologies,” said Commerce Secretary Gina Raimondo, who called the investments a “once-in-a-generation opportunity to advance our national and economic security and create a thriving, long-lasting domestic semiconductor manufacturing industry.”

President Joe Biden signed the incentives into law in August 2022 partly out of concerns that a military attack on Taiwan could deprive the world of advanced computer chips and plunge the U.S. into a recession.

The coronavirus pandemic revealed the fragility of computer chip supplies as a worldwide shortage curbed U.S. auto production and pushed up prices around the start of Biden's presidency.

“Over the coming year, the Department of Commerce will award billions more to make more semiconductors in America, invest in research and development capabilities to keep America at the forefront of new technologies,” Biden said in a statement.

Biden also said the incentives his administration is providing have already led to more than $230 billion in planned investments in semiconductors and electronics.

The Democratic president has gone to a planned Intel factory in Ohio and a new Taiwan Semiconductor Manufacturing Co. plant in Arizona, as well as touted investments by IBM while in New York. Biden has made these financial commitments part of his pitch to voters ahead of the 2024 elections, saying his policies have energized the U.S. economy.

Government officials said the investment in the BAE Systems' facility will ultimately save money for taxpayers. The money being paid out as the company hits benchmarks will help quadruple the plant's production capacity, helping to halve the price of making the chips and leading to net savings for the federal agencies buying the chips.

White House national security adviser Jake Sullivan said NATO allies and partners in Asia also will benefit from the increased capacity. But he stressed that an expanded manufacturing base was essential to protect the U.S.

“We do not want to be in a position where critical national security needs are dependent on faulty foreign supply chains,” Sullivan said. “We do not want to be in a position where another country can cut us off in a moment of crisis.”

Popular

Hard-liners are leading in Iran’s parliamentary election which may have witnessed record-low turnout

A day after parliamentary election concluded in Iran, hard-liners are leading in initial vote counting in the capital of Tehran, state media reported

Russian drone strike on the Ukrainian port city of Odesa kills 3

Three people were killed when a Russian drone hit an apartment block in the southern Ukrainian port city of Odesa overnight, regional Gov. Oleh Kiper said Saturday morning

Two buildings damaged, people evacuated after 'incident' in Russia's St Petersburg, governor says

ST PETERSBURG (Reuters) - Two buildings were damaged and people were evacuated in Russia's St Petersburg on Saturday morning after local residents reported a loud explosion that blew out windows.

Oregon lawmakers pass bill to recriminalize drug possession

The Oregon Legislature has passed a bill that recriminalizes the possession of small amounts of drugs

Powerful storm in California and Nevada shuts interstate and dumps snow on mountains

A powerful blizzard is dumping snow in the Sierra Nevada as gusty winds and heavy rain hit lower elevations

Last surviving member of the first team to conquer Mount Everest says it is crowded and dirty now

The only surviving member of the mountaineering expedition that first conquered Mount Everest says the world’s highest peak is too crowded and too dirty and the mountain is a god that needs to be respected

Related

Peace, music and memories: As the 1960s fade, historians scramble to capture Woodstock's voices

An estimated 450,000 people attended the Woodstock festival in August 1969

College athletes would need school approval for NIL deals under bill passed by Utah Legislature

College athletes in Utah who are looking to profit off their name, likeness and image will have to seek written approval from their school for any business deal exceeding $600

World Trade Organization ends meeting in UAE after failing to reach major agreements

Negotiators taking part in a World Trade Organization meeting in the United Arab Emirates have ended their summit after failing to reach agreements on several major initiatives

Iris Apfel, fashion icon known for her eye-catching style, dies at 102

Iris Apfel, a textile expert, interior designer and fashion celebrity known for her eccentric style, has died

- Advertisement -
Advertisement: Limited Time Offer