Fact Check: Does BAE Get Government Subsidy?
What We Know
BAE Systems, Inc. has received federal incentives under the CHIPS and Science Act, which is part of the Biden-Harris Administration's efforts to revitalize American semiconductor manufacturing. On December 11, 2023, the U.S. Department of Commerce announced a preliminary memorandum of terms to provide approximately $35 million in federal incentives to BAE Systems Electronic Systems for the modernization of its Microelectronics Center in Nashua, New Hampshire. This funding aims to enhance the production of chips critical for defense programs, including the F-35 fighter jet program (source-1).
Furthermore, on November 25, 2024, the Department of Commerce finalized an award of up to $35.5 million in direct funding to BAE Systems as part of the CHIPS Incentives Program, which is designed to support commercial fabrication facilities (source-3). These awards are part of a broader initiative that has allocated over $36 billion in proposed incentives to bolster U.S. semiconductor manufacturing and create jobs (source-3).
Analysis
The evidence clearly indicates that BAE Systems is receiving government subsidies through federal funding initiatives aimed at enhancing domestic semiconductor production. The CHIPS and Science Act, signed into law in August 2022, was designed to strengthen U.S. supply chains and national security by investing in semiconductor manufacturing (source-1). The funding awarded to BAE Systems is part of a strategic effort to modernize facilities and increase production capacity for critical defense technologies.
The sources used in this fact-check are credible, as they originate from official government announcements and reputable platforms like the National Institute of Standards and Technology (NIST). The information is consistent across multiple reports, reinforcing the reliability of the claims made regarding the subsidies provided to BAE Systems (source-1; source-3).
Conclusion
The claim that BAE Systems receives government subsidies is True. The company has been awarded significant federal funding under the CHIPS and Science Act to support its semiconductor manufacturing capabilities, which are essential for national defense. This funding is part of a broader governmental strategy to enhance domestic production and security in the semiconductor industry.
Sources
- Biden-Harris Administration and BAE Systems, Inc., Announce CHIPS ... NIST
- BAE SYSTEMS PLC | Federal Award Recipient Profile | USAspending USAspending
- Biden-Harris Administration Announces CHIPS Incentives ... NIST
- PDF Administration of Joseph R. Biden, Jr., 2023 - GovInfo GovInfo
- CONTRACT to BAE SYSTEMS SPACE & MISSION ... USAspending
- CONTRACT to BAE SYSTEMS INFORMATION AND ELECTRONIC SYSTEMS INTEGRATION ... USAspending
- CONTRACT to BAE SYSTEMS INFORMATION AND ... USAspending
- CONTRACT to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC ... USAspending
