US contract vehicle to speed US made defense semiconductors into military systems

by Clarence Oxford
Los Angeles CA (SPX) Feb 03, 2026

Northrop Grumman has been selected as one of the companies to receive an award from the US Defense Microelectronics Activity for a new contracting tool intended to accelerate the delivery of American made microelectronics into military systems. The Advanced Technology Support Program V, or ATSP5, is structured as an Indefinite Delivery Indefinite Quantity contract with an award ceiling of 25 billion dollars over ten years.

Under ATSP5, Northrop Grumman can respond to requests for proposals within 30 days, with the overall process from proposal to award typically taking between 80 and 90 days. This accelerated cycle is designed to move newly developed or upgraded semiconductor solutions into operational defense systems much faster than traditional acquisition paths.

The company will use ATSP5 to continue advancing next generation manufacturing and packaging techniques alongside work in emerging semiconductor materials engineering. These efforts are aimed at providing military grade, customer tailored microelectronics that can be integrated into end systems more quickly while meeting stringent reliability and performance requirements.

Program manager Lori Manley said the award validates the companys track record using this process across more than 200 task orders within Northrop Grumman. She said the government demands swift action and that the new ATSP5 contract strengthens the US supply chain by enabling rapid integration of American made microelectronics solutions and ensuring speedy deployment of reliable systems for warfighters.

ATSP5 is intended to ensure that military systems have access to the most advanced microelectronics embedded within them, replacing chips that lag several generations behind commercially available technologies. By using this contract vehicle, defense customers can work with Northrop Grumman to update or redesign electronic subsystems so that weapons and mission systems remain ready and capable.

The award is aligned with the priorities of the US Secretary of War, emphasizing improved responsiveness and clear short and long term goals for microelectronics modernization. The structure of ATSP5 is meant to keep government and industry teams focused on delivering solutions at speed, supporting organizations that develop and field technology for US military forces.

Northrop Grumman designs, manufactures, assembles, tests and packages millions of microelectronics devices annually within the United States for both defense and commercial applications. The company positions this domestic production capability as a way to protect and sustain the American microelectronics supply chain while reinforcing national defense infrastructure.

From initial design and fabrication through to fielded deployment, the companys mission tailored microelectronics are described as the intelligence that powers next generation military and commercial systems. Northrop Grumman says these components are foundational to mission success, forming critical building blocks inside advanced sensors, communications links, weapons, and other high performance platforms.