BAESY Bae Systems Plc (PK)

By Anthony O. Goriainoff

BAE Systems said the U.S. Department of Commerce will invest around $35 million as initial funding for the modernization of its microelectronics center in Nashua, New Hampshire.

The U.K. defense-and-aerospace group said Monday that the funding comes under the provisions of the CHIPS and Science Act, which was designed to strengthen U.S. semiconductor manufacturing, supply chains, and national security. It added that the funding will help it purchase new and more efficient manufacturing tools to "mitigate supply chain risk, increase production capacity, and reduce time-to-build product."

The company said the center was accredited by the U.S. Department of Defense and produces technology for DoD applications designed to meet demanding military requirements.

"The increased efficiency will enable a scale-up in production to meet increasing demand for DoD technology and provide critical microelectronics to non-defense industries including satellite communications, and test and measurement equipment markets," the company said.

Shares at 1350 GMT were down 1 pence, or 0.1%, at 1,041.50 pence.

Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com

(END) Dow Jones Newswires

December 11, 2023 09:10 ET (14:10 GMT)

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