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  July 28th, 2023 | Written by

Department of Commerce and Department of Defense Sign Memorandum of Agreement to Strengthen U.S. Defense Industrial Base

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The United States Departments of Commerce (DoC) and Defense (DoD) have signed a Memorandum of Agreement (MOA) to expand collaboration to strengthen the U.S. semiconductor defense industrial base. The agreement will increase information sharing between the Departments to facilitate close coordination on the CHIPS for America’s incentives program, ensuring that their respective investments position the U.S. to produce semiconductor chips essential to national security and defense programs.

The MOA is a crucial step forward in implementing the bipartisan CHIPS and Science Act, a key part of President Biden’s Investing in America agenda. The MOA will advance this agenda to strengthen manufacturing and supply chains here at home, solidify America’s global leadership, and protect long-term national security.

By aligning priorities and decision-making, the MOA will enable a more synchronized approach to promoting a robust and resilient semiconductor supply chain. Specific areas of consultation identified in the MOA include sharing information on the semiconductor needs of the Defense Industrial Base, the investment priorities of DoD and each military service, the existing and planned investments to sustain mature and legacy chip capabilities for current defense programs, and funding to support emerging technologies that are critical to future U.S. national security programs.

The MOA will also facilitate collaboration on potential investment applications to ensure DoC and DoD are making complementary decisions that maximize federal investments under the CHIPS Incentive Program and DoD Defense Production Act and Industrial Base Analysis and Sustainment funds.