US-based company innovates 'cutting-edge technology' to help improve military

One U.S.-based company is manufacturing semiconductor chips to help improve the military.

Aeluma CEO Jonathan Klamkin told FOX Business' Stuart Varney "cutting edge technology" has attracted "high interest" from the government, resulting in a contract with the Navy.

"Our chips are made 100% in America," Klamkin explained. "We have a very unique facility in Santa Barbara, California, and we work with a number of US-based foundries… The technology that we develop is of high interest to the U.S. government and also to some of the commercial sector." 

Klamkin added the "very core" of their intellectual property is something that "no one else in the world knows how to produce."

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While shedding light on how Aeluma's technology plays a role in improving U.S. military platforms, Klamkin said the "work that we're doing with the Navy" on aerial platforms provides information on how chips will perform in extreme environments.  

In addition, the technology is "very broadly applicable," he said, pointing to contracts with the offices of the Secretary of Defense and the Department of Energy. 

As the U.S. seeks to be the leader in semiconductor manufacturing, the Chips and Science Act, which passed in 2022, provided funds for the development of and production of semiconductor chips. 

The CEO weighed in on how the legislation has impacted semiconductor companies explaining how most of the announcements regarding the act are incentivizing the larger companies to manufacture in the U.S. 

"The U.S. only manufactures about 12% of the world's advanced chips," he said. "So much of the Chips Act funding is incentivizing big semiconductor companies to do more manufacturing onshore." 

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As far as his company goes, Klamkin explained how they see funding from the government. 

"We are a part of a pretty major initiative in Southern California, funding that flows down through the Department of Defense and brings together the defense and aerospace industry, along with a number of small and medium-sized companies and universities."

"So after the big semiconductor companies are taking advantage, now we're starting to see those funds flow down to smaller businesses like us," he added.