The Defense Department has awarded a significant contract worth $576 million to a technology company to bolster the semiconductor supply chain for military applications in the United States. The 10-year indefinite-delivery/indefinite-quantity contract aims to enhance the production of commercial semiconductor technologies and services to meet the specific needs of the U.S. military.
Under the contract, the company will collaborate with the Defense Microelectronics Activity (DMEA) to establish a secure domestic supply chain for trusted microelectronics. This initiative is part of the Trusted Foundry Access III program, which seeks to develop an evidence-based “trusted” enclave for manufacturing secure microelectronics in the commercial market.
The work will primarily take place at Semiconductor Fabrication facilities located in Vermont, New York, and Canada. The contract covers the microelectronics manufacturing security component of the TFA III program, with the goal of ensuring the availability of trusted application-specific integrated circuits until fiscal year 2033.
Funding for the initial phase of the contract, totaling $27 million, has been allocated from fiscal year 2024 funds. This investment underscores the Defense Department’s commitment to strengthening the semiconductor supply chain and enhancing national security capabilities.
In addition to this contract, the company was previously awarded a $275 million contract in May 2019 to develop semiconductor manufacturing flows at contractor fabrication facilities. These initiatives demonstrate the government’s ongoing efforts to promote innovation and resilience within the U.S. semiconductor industry.
The contract represents a significant milestone in efforts to safeguard critical supply chains and ensure the availability of essential technologies for military applications.
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