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Biden administration rushes to distribute final chips program funding

Nov 25, 2024, 6:44am EST
politicsNorth America
Amazon artificial intelligence processors that aim to tackle Nvidia and the chips made by the other hyperscalers such as Microsoft and Google are shown at an Amazon lab in Austin
Sergio Flores/File Photo/Reuters
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The Biden administration is charging full steam ahead on efforts to revitalize the domestic semiconductor ecosystem.

The Commerce Department said on Monday it plans to award BAE Systems $36 million in grants to upgrade its New Hampshire semiconductor facility, allowing the company to quadruple production of chips used in military aircraft and commercial satellites.

Meanwhile, Commerce will also give Rocket Lab $24 million for its New Mexico facility that produces chips that can withstand large doses of radiation.

The agency has allocated $36 billion of the $39 billion in available funding through the chips program, and finalized awards for more than $10 billion of the $36 billion, a Commerce official told Semafor.

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“I’d like to have really almost all of the money obligated by the time we leave,” Commerce Secretary Gina Raimondo recently told Politico.

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