UNITED STATES NEWS

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

Dec 11, 2023, 3:22 AM

FILE - U.S. Commerce Secretary Gina Raimondo speaks during the opening session of the APEC CEO Summ...

FILE - U.S. Commerce Secretary Gina Raimondo speaks during the opening session of the APEC CEO Summit Wednesday, Nov. 15, 2023, in San Francisco. (AP Photo/Eric Risberg, File)
Credit: ASSOCIATED PRESS

(AP Photo/Eric Risberg, File)

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.”

United States News

FILE - Los Angeles County District Attorney George Gascón speaks during a news conference Feb. 22,...

Associated Press

Los Angeles County district attorney seeks reelection in contest focused on feeling of public safety

LOS ANGELES (AP) — Los Angeles County voters are set to decide next month if embattled District Attorney George Gascón will remain the head of the nation’s largest prosecutor’s office in a race centered on perceptions of public safety. Gascón, who was elected in 2020 on a criminal justice platform alongside a wave of progressive […]

2 hours ago

In combo of undated selfie images provided courtesy of the Dime Doe family, show Dime Doe, a Black ...

Associated Press

A love affair unraveled before a Black transgender woman was fatally shot in rural South Carolina

COLUMBIA, S.C. (AP) — A Black transgender woman and the guy she was secretly dating had just been pulled over in rural South Carolina. Dime Doe, the driver, was worried. She already had points against her license and didn’t want another ticket to stop her from getting behind the wheel. Daqua Lameek Ritter, whom she […]

2 hours ago

Associated Press

Remains found over 50 years ago identified through DNA technology as Oregon teen

PORTLAND, Ore. (AP) — The remains of a teenager found more than 50 years ago have been identified through advanced DNA technology as a young woman who went missing from Portland, Oregon State Police said. The remains are that of Sandra Young, a high school student who disappeared in 1968 or 1969, police said Thursday […]

4 hours ago

Associated Press

California man arrested for making threats against election official in Arizona after 2022 vote

SAN DIEGO (AP) — A San Diego man was arrested Thursday on suspicion of leaving threatening messages on the personal cellphone of an Arizona election worker he accused of rigging the 2022 election results, federal prosecutors said. The 52-year-old was charged with one count of communicating an interstate threat and will make an initial court […]

5 hours ago

Associated Press

Two more candidates file papers to run for U.S. Senate in Pennsylvania

HARRISBURG, Pa. (AP) — Two more candidates filed paperwork Thursday to appear on Pennsylvania’s primary ballots for U.S. Senate as Democratic Sen. Bob Casey runs for a fourth term and Democrats try to maintain a majority in the narrowly divided chamber. Brandi Tomasetti, a Republican from Lancaster County, and William Parker, a Democrat from Allegheny […]

5 hours ago

Follow @ktar923...

Sponsored Content by Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

Sponsored Articles

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

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