DOD Awards $25.3 Billion Microelectronics Contract to 10 Companies
The Defense Department has awarded a $25.3 billion contract to 10 companies under the Advanced Technology Support Program for microelectronics engineering development services over the next decade. This initiative aims to enhance military systems with advanced computer chips, addressing semiconductor obsolescence and focusing on research areas such as quantum computing and nanoelectronics. The contract follows a competitive bidding process, with the previous iteration having allocated approximately $9.2 billion since its inception in 2016.
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The Defense Department has selected 10 companies for a potential 10-year, $25.3 billion contract under the Advanced Technology Support Program (ATSP) for engineering development support services in microelectronics. This contract, iteration number five, encompasses the entire lifecycle of advanced computer chips, including design, development, analysis, integration, and testing.
The Defense Microelectronics Activity received 17 bids for this recompete, with the current ATSP4 contract initiated in 2016 having obligated approximately $9.2 billion to date. ATSP4 is set to expire on March 31.
Raytheon and Northrop Grumman have received 89% of the previous funding, while Lockheed Martin and BAE Systems’ U.S. subsidiary are not among the new awardees. The program aims to update military systems with advanced microelectronics and mitigate issues related to semiconductor obsolescence, focusing on research in quantum computing, nanoelectronics, and submicron engineering.
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