Northrop Grumman Lands Major Microelectronics Contract for Military Systems
Northrop Grumman won a US defense microelectronics contract designed to speed American‑made chips into military systems, the company and US Defense Microelectronics Activity announced February 2, 2026.
The award places Northrop Grumman on the Advanced Technology Support Program V, or ATSP V, a long‑term contracting vehicle with a ceiling of about $25 billion aimed at getting domestic semiconductor technology into Department of Defense systems faster.
What the ATSP V Contract Means
The ATSP V contract is an indefinite delivery, indefinite quantity vehicle that lets the DoD and other federal agencies access advanced microelectronics engineering and manufacturing support without a full separate acquisition process for each order.
Under ATSP V, Northrop Grumman and other awardees can:
• Respond to government requests for proposals within roughly 30 days.
• Complete the work from proposal to contract award in an estimated 80 to 90 days.
Those timelines aim to shorten the time between identifying a need and delivering capable microelectronics solutions, a priority for military systems that increasingly depend on modern chips.
Boosting Domestic Microelectronics Capability
The ATSP V award supports broader US efforts to bring microelectronics design, packaging, and production into the domestic supply chain. Northrop Grumman said it has executed more than 200 task orders under similar frameworks, giving it experience in rapid integration of American‑made microelectronics for defense customers.
Lori Manley, Northrop Grumman’s ATSP V program manager, said the award demonstrates readiness to meet government demands and strengthen the US supply chain for reliable systems destined for warfighters.
The company notes that its microelectronics operations span design, fabrication, assembly, testing, and packaging, with facilities geared toward domestic production of chips and advanced components used in defense and commercial systems.
Context in US Defense Tech Procurement
ATSP V is part of a series of Department of Defense efforts to secure trusted and resilient supply lines for semiconductors, a class of components critical to everything from secure communications to weapons systems. Earlier programs have included long‑term agreements with fab partners to build trusted technologies on US soil.
Northrop Grumman joins other major defense and tech firms on this contract vehicle, which is expected to support a range of engineering activities from next‑generation manufacturing and packaging to emerging materials and processes.
Why It Matters
Semiconductors are at the heart of modern military systems, powering sensors, communications, navigation, and weapons controls. The ATSP V contract intends to deliver needed technologies at speed, helping the DoD keep pace with evolving threats and maintain a competitive advantage.
Short, clear procurement cycles and deeper domestic production align with US defense strategy to reduce reliance on foreign sources for critical components, a focus shared across the Pentagon and Congress.
Get real time update about this post category directly on your device, subscribe now.
