Northrop Grumman opening semiconductor plants to other defense companies

Defense industry players can now use Northrop Grumman's three semiconductor facilities to design, manufacture, package and test microelectronics within the United States for commercial and defense applications, the company announced today.

The facilities make up Northrop Grumman’s Microelectronics Center -- semiconductor foundries in California and Maryland and an advanced packaging facility in Florida. Interested entities would also have access to an online storefront selling Northrop-produced semiconductor products and components, the company said.

The access means “Northrop Grumman is helping to expand and strengthen the resilience of America’s semiconductor industry and supply chain,” Verne Boyle, vice president at NGMC said.

That’s important because 98% of advanced packaging needs for microelectronics are sent offshore, according to industry research.

The reliance on foreign entities poses a national security risk to the semiconductor supply chain, Northrop said. It’s a concern the Defense Department itself has pointed to in prior years, according to the Congressional Research Service.

“The Department of Defense has expressed concerns about U.S. dependence on suppliers of semiconductors located outside the United States, especially suppliers in nations that are hostile or may become hostile to U.S. interests, a situation which may create vulnerabilities,” CRS wrote in a 2020 report.