US finalizes awards to BAE Systems, Rocket Lab for semiconductor chips

FILE PHOTO: Signage is displayed at the BAE Systems plc booth at Special Operations Forces (SOF) Week for defense companies, in Tampa, Florida, U.S., May 7, 2024. REUTERS/Luke Sharrett/File Photo

WASHINGTON (Reuters) - The U.S. Commerce Department said on Monday it is finalizing nearly $60 million in government subsidies for BAE Systems to build chips used in jets and satellites, and for Rocket Lab to build compound semiconductors used in satellites and spacecraft.

The department is finalizing $35.5 million to BAE to quadruple production in New Hampshire for key semiconductor chips used in F-35 fighter jets and commercial satellites. The investment will cut the company’s planned modernization timeline in half, Commerce said.