BAE Systems Secures $16m US Funding for Space Chips

BAE Systems shares climbed 1.2% on Wednesday, reaching an intraday high of 2,037p before settling near 2,029p. The London-listed defence contractor confirmed it received $16 million in Defense Production Act Title III funding from the US Department of War. This award specifically targets the reinstatement of the RH45 ASIC Storefront, a platform that allows customers to design radiation-tolerant integrated circuits.

Trading volumes exceeded 6.3 million shares as investors reacted to the news. The funding supports the group’s expanding space and microelectronics division, reinforcing its position in the domestic US supply chain for high-performance components used in defence and commercial space missions.

Funding Reinstates RH45 ASIC Storefront

The $16 million award, issued through the Warfighting Investments, Resourcing, and Execution directorate, will demonstrate and qualify BAE Systems’ radiation-hardened 45-nanometre technology. This platform had previously allowed space customers to design their own radiation-tolerant integrated circuits using proven manufacturing methods for over a decade. The funding ensures the continuation of this capability without interruption.

Manufacturing will be executed at GlobalFoundries’ facility in Malta, New York, using their 45nm silicon-on-insulator process. This arrangement strengthens the domestic US supply chain for critical microelectronics. Joe Dziezynski, Space Systems product line director at BAE Systems, noted that the RH45 library provides a trusted capability for meeting radiation-hardened requirements in challenging space environments.

Integration Into Endura Single-Board Computers

The RH45 technology is expected to feature in BAE Systems’ Endura single-board computers. These units are destined for use by space agencies and spacecraft manufacturers. Work on the qualification and demonstration will be carried out at the company’s Manassas, Virginia facility, which is designated as a US Department of War Category 1A Microelectronics Trusted Source.

Part Of Broader US Defence Push

This contract is one of five DPA Title III awards totalling $102.6 million issued this fiscal year. The funding underscores continued US government support for domestic defence-critical manufacturing capacity. According to reporting by GN stocks/shares-surge, the move signals a strategic alignment between BAE Systems and US national security priorities regarding supply chain resilience.