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Micron gets $275M in federal funding for Manassas expansion

Micron Technology is set to receive up to $275 million in federal funding to expand its manufacturing plant in Manassas, U.S. Sens. Mark Warner and Tim Kaine announced Tuesday.

The U.S. Department of Commerce has signed a preliminary, nonbinding agreement for the funding as part of the 2022 CHIPS and Science Act, legislation Warner co-wrote. The law provides $52 billion in subsidies for domestic companies researching and manufacturing semiconductors, and Tuesday’s award means Micron will move its manufacturing of dynamic random-access memory (DRAM) chips for automobiles from Taiwan to Virginia.

“I am proud to announce that $275 million should soon be headed to Virginia for Micron Technology to manufacture more cutting-edge semiconductors here in Virginia,” Warner said in a statement. “Making more of these chips in America will strengthen our national security and create jobs, which is why I pushed to pass this funding through Congress, why I am working with Micron and the Biden administration to secure this investment in Virginia, and why I’m going to be making the case to the incoming administration that we need to keep investing in domestic manufacturing of critical and emerging technologies like semiconductors.”

Warner says that the expansion of Micron’s Manassas facility would create nearly 950 construction jobs and more than 400 manufacturing jobs. Micron currently employs 1,230 people in Manassas.

The White House announced that the Department of Commerce signed a nonbinding preliminary memorandum of terms with Micron for the $275 million in proposed funding.

“As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation,” Micron President and CEO Sanjay Mehrotra said in a statement. “Micron’s investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements.”

Although the timeline of the expansion has not been announced, the Idaho-based company expects to invest $2 billion in the project, and the state also will be pitching in about $46 million, approved by the Major Employment Investment Project Review Commission in May.

According to the Richmond Times-Dispatch, the state repackaged a $70 million economic development incentive package awarded to Micron in 2018 to provide $46 million in unspent financial incentives for the expansion of the Manassas plant.

The U.S. Department of Commerce awarded Micron up to $6.165 billion in direct funding to expand DRAM production in Idaho and New York, creating approximately 20,000 jobs and helping the U.S. grow its share of advanced memory manufacturing from less than 2% now to about 10% by 2035, according to the Biden administration.

Micron reported fiscal 2023 revenue of $15.54 billion, compared with $30.76 billion for the previous year.

Pharma company invests $1.5M on Prince William expansion

Pharmaceutical manufacturer Granules Consumer Health, a subsidiary of Granules India, will invest $1.5 million into expanding its operations in Prince William County, Gov. Glenn Youngkin announced Monday. 

The company plans to install new manufacturing lines at its existing Manassas facility, with an aim of creating nearly 100 new jobs. 

“Granules’ decision to expand their operations reinforces Virginia’s position as a cutting-edge hub for advanced pharmaceutical manufacturing,” Youngkin stated in a news release. “This investment … underscores the Commonwealth’s commitment to supporting businesses that drive innovation in healthcare and life sciences.”

In 2022, Granules Consumer Health announced plans to invest $12.5 million to establish a facility on Cushing Road in Manassas for pharmaceutical packaging and distribution. The operation currently has Our Chantilly location is Granules Pharmaceuticals Inc. where the manufacturing occurs. The Manassas operation currently has about 105 full-time workers, according to Bret Svedberg, head of human resources for the company’s North America operations. 

“Since its opening in early 2023, we have nearly doubled our workforce by hiring local talent,” Krishna Prasad Chigurupati, chairman and managing director of Granules India, stated in a news release. “This is a big step forward for us, and we are glad to be growing alongside the community.” 

Founded in 1991, Granules India has a presence in more than 80 countries.

Granules has 323 employees in North America, including about 185 who work at Granules Pharmaceuticals, a manufacturing facility, in Chantilly, according to Svedberg.

Granules Consumer Health launched in 2014 to manufacture over-the-counter, generic pharmaceutical products. 

The Virginia Economic Development Partnership worked with Prince William to secure the project. Granules Consumer Health will receive support through the state-funded Virginia Jobs Investment Program, which provides services and funding to support employee recruitment and training.

Editor’s note: This story has been updated. 

Electra.aero names new CEO

Electra.aero has named B. Marc Allen its new CEO, succeeding founder John S. Langford, who will remain chairman, the Manassas-based aviation startup announced Thursday.

Allen spent the bulk of his career, nearly two decades, at Boeing, which is headquartered in Arlington County. Since 2020, he served as chief strategy officer and senior vice president for strategy and corporate development. In that role, he was responsible for overarching strategy, including long-term planning, global business and corporate development and strategic investments, acquisitions and divestitures.

In 2014, Allen was appointed to Boeing’s executive council and later became president of subsidiary Boeing International. He stepped down as chief strategy officer at the end of 2023, part of a reorganization of Boeing’s strategy arm that eliminated the job. In January, a Boeing jet experienced a midair blowout of a 4-foot wall panel while passengers were on an Alaska Airlines flight. The incident led to a C-suite shakeup and federal fines in the hundreds of millions of dollars, as well as declining orders and sales.

Allen earned a degree in political theory at Princeton University and finished law school at Yale. Early in his career, he clerked for U.S. Supreme Court Associate Justice Anthony M. Kennedy.

Backed by Lockheed Martin Ventures, Electra builds hybrid-electric Ultra Short airplanes that fly people and cargo without airports, emissions or noise. The company has more than 2,000 orders from more than 50 commercial clients, as of January, and in November 2023, Electra’s hybrid prototype aircraft, the EL-2 Goldfinch, took off for the first time at the Manassas airport.

Langford, an aerospace entrepreneur who previously founded Aurora Flight Sciences, which develops air vehicles and technology, and Athena Technologies, a developer and manufacturer of control and navigation solutions for unmanned aerial vehicles, launched Electra in 2020. Since then he has served as both chairman and CEO. With Allen’s appointment, Langford will continue on as chairman, focusing on long-term strategy and innovation.

“I am not going anywhere; I’m just splitting my job,” Langford wrote in a post on LinkedIn.

Langford built a friendship with Allen when Aurora Flight Sciences was acquired by Boeing in November 2017, he noted in the post.

“Marc’s exceptional background in global business and strategic leadership makes him the ideal choice to guide Electra into its next phase of growth,” Langford stated in a news release.

Electra has about 45 employees, according to a spokesperson. In 2023, the company received a Virginia Innovation Partnership Corp. Commonwealth Commercialization Fund grant, as well as an investment from VIPC’s Virginia Venture Partners.

Micron expects to expand Manassas facility soon

Bolstered by hundreds of millions of dollars in state and federal funding, semiconductor manufacturing in Northern Virginia soon will be expanding.

In May, Idaho-based Micron Technology applied for federal funding through the 2022 CHIPS and Science Act, which allocated more than $52 billion in subsidies for domestic companies researching and manufacturing semiconductors, to expand its Manassas plant. Micron manufactures dynamic random-access memory (DRAM) chips for automobiles at its Manassas facility.

The expansion will move its existing DRAM manufacturing from Taiwan to Virginia and will nearly double the workforce at the plant, which already employs 1,230 people.

That follows closely with the intended impact of the CHIPS Act. In 2021, the United States manufactured roughly 14% of semiconductors worldwide but consumed 34%, according to a White House statement. This imbalance became evident in 2020, when the pandemic interrupted supply chains, creating shortages of automobiles, household appliances and other electronics.

While Micron’s application is working its way through the process, U.S. Sen. Mark Warner, who co-authored the CHIPS Act, says the federal subsidy will be significant.

“I am optimistic it will be a multi-hundred-million-dollar investment,” Warner says.

That will be on top of a yet-undisclosed amount of funding from the state government, much of which came in a repackaging of a 2018 $70 million incentive bundle. Virginia’s Major Employment Investment Project Review Commission unanimously approved the funding in a closed-door meeting in May, the Richmond Times-Dispatch reported.

Micron plans to invest $3 billion in the expansion by 2030.

“Gov. Youngkin is working with federal partners to ensure Micron’s application is as competitive as possible to bring this project to fruition in Virginia,” says Macaulay Porter, a spokesperson for the governor. “Micron’s proposed expansion marks an unparalleled opportunity for Virginia … to demonstrate leadership in key semiconductor memory technologies.”

The state’s involvement helps Micron’s case with its CHIPS Act application, Warner says, and will prove important in keeping the burgeoning business at the forefront of Virginia’s economy.

“We’ve seen historically that if a company doesn’t continue to invest … technology will pass them by,” Warner says. “So, this CHIPS funding is extremely important.”

The timeline is not clear for when the federal review process will wrap up, nor has Micron designated a timeline for the expansion.  

Electra aircraft backlog hits $8B

Manassas-based aviation startup Electra.aero has surpassed 2,000 orders for the electric short takeoff and landing (eSTOL) aircraft it’s developing, totaling an $8 billion backlog, the company announced Tuesday.

Electra signed a letter of intent in December 2023 to deliver its blown-lift, fixed-wing eSTOL aircraft to Finnish regional private air carrier startup Lygg, followed by similar agreements in January with New York helicopter tour company Charm Aviation and New Delhi-based charter jet and helicopter service JetSetGo Aviation Services Private.

The deal with JetSetGo — reached at Wings India 2024, a four-day advanced air mobility aviation conference held this month in Hyderabad, India — brought Electra’s pre-order sales for its aircraft over the 2,000 mark, with an $8 billion backlog, up from around 1,700 pre-ordered aircraft and a $6 billion backlog in November 2023.

Electra completed the first successful test flight of its prototype electric hybrid eSTOL aircraft in November 2023. Electra’s EL-2 Goldfinch took off from Manassas Regional Airport and flew 23 minutes, reaching an altitude of 3,200 feet and covering about 30 miles.

JetSetGo made the deal as part of a commitment with Electra and two other aircraft manufacturers to obtain a total of 150 aircraft for a combined $780 million, according to the Indian private air carrier. Contract options could bring the aircraft order to 280 aircraft at a total value of $1.3 billion. Lygg has disclosed that its agreement calls for Electra to deliver 150 planes beginning in 2028, with options to order an additional 150 aircraft, at a combined total value of €1 billion (or about $1.08 billion) for the 300 aircraft, according to a December 2023 news release. The privately held Electra has not disclosed the cost of its aircraft or the amounts of its pre-order contracts with private clients.

“Having followed Electra for a long time, we are convinced that they will be one of the leaders in this market. We, in turn, can offer a direct path to commercial business for their planes through our corporate customer network and operators,” Lygg CEO Roope Kekäläinen said in a statement.

In a Jan. 23 news release, Electra said it is collaborating with JetSetGo to identify relevant markets and new routes in India that can be served by the eSTOL aircraft, establishing regional transportation hubs and increased connectivity between major cities and communities underserved by flight services.

“Electra is committed to partnering with JetSetGo for the long term to grow regional transportation markets and help bring jobs and vital economic growth to communities in India,” Electra Chief Product Officer Marc Ausman said in a statement.

JetSetGo’s chief operating officer and co-founder, Kanika Tekriwal, said in a news release, “India’s geography and demographics make it an ideal launch market for advanced air mobility. We want to lead the transformation of urban and regional connectivity and believe Electra is the right partner with the technology to make this vision a reality.”

In January 2023, Electra received an $85 million award from the Air Force to accelerate prototype development, testing and evaluation. And in November 2023, Electra announced that Bristow Group, a Texas-based company that provides helicopter offshore energy transportation and search and rescue services, made a deposit for five of Electra’s future aircraft. Bristow signed a memorandum of understanding with Electra in 2021, preordering up to 50 aircraft.

Electra was founded by CEO and Chairman John Langford in 2020; the company has 40 employees and contractors. Langford previously co-founded Aurora Flight Services, a subsidiary of Arlington County-based Boeing. Langford also participates in the Virginia Innovation Partnership Corp.’s Advanced Air Mobility Alliance, and the company in 2023 received a VIPC Commonwealth Commercialization Fund grant as well as an investment from VIPC’s Virginia Venture Partners.

Electra’s hybrid prototype aircraft takes first flight

This story was updated Dec. 1.

A Manassas aircraft manufacturer that’s developing an electric short takeoff and landing (eSTOL) aircraft logged a significant milestone Nov. 19 when it completed its first hybrid-electric flight.

Electra’s EL-2 Goldfinch took off from Manassas Regional Airport and flew 23 minutes, reaching an altitude of 3,200 feet and covered about 30 miles, the company said in a news release.

According to Electra, the company’s two-seat Goldfinch eSTOL is the world’s first aircraft to use blown-lift distributed electric propulsion powered by a hybrid-electric propulsion system. It relies on eight electric motors to increase wing lift and enable short takeoffs and landings on soccer-field-size spaces. It is also quieter than conventional airframes, while emitting fewer pollutants. Its  turbogenerator can also charge the hybrid electric airplane during flight, eliminating the need for special charging infrastructure at every airport.

The Goldfinch was flown by Cody Allee, a former Navy jet fighter pilot who is now chief technology officer and chief test pilot at Maryland-based ABSI Aerospace & Defense, a provider of unmanned aircraft systems training and technology. Electra.aero Vice President and General Manager JP Stewart followed the Goldfinch in a Cessna 185.

Watching the flight was “the realization of a dream,” Stewart said. “The first flight showed that the airplane was stable, that it was controllable, that … the systems work great and are well understood in how we’ve modeled them, and now we start to expand that envelope,” Stewart said.

That expansion will include additional testing of different control inputs, including turning and pitching up and down, as well as flying at different speeds. While much of the first flight stuck largely between about 80 and 90 miles per hour, the aircraft can reach speeds of up to 200 mph; however, the emphasis should be on how slow the aircraft can fly, Stewart said. Unlike a traditional aircraft, it doesn’t require a long runway.

“That’s how you get into these really small spaces. The idea of what we’re pursuing with the short takeoff and landing is that you can start by flying from existing airports, and going airport to airport, because that’s known infrastructure … and you can replace aging airplanes and less efficient airplanes that are doing that mission already,” Stewart said. “Because you can get into these small spaces, as the market develops, you can start to land in vertiports or places that used to be the domain purely of helicopters.”

The Goldfinch flown on Nov. 19 is a prototype for a eSTOL aircraft the company is developing, targeted for commercial use by 2028, that can carry up to nine passengers or 2,500 pounds of cargo. That aircraft is intended to take off and land within distances as short as 150 feet and fly at up to 200 mph with a range of 500 miles, which could open up air travel to more regions while making it more affordable, more environmentally friendly and faster.

“The aim of Electra is to fill a gap in air travel between 50 and 500 miles, where most trips today are made by automobile. The key to saving time is to operate close in, which means getting in and out of small spaces quietly and safely, while still being fast enough to cover long distances,” Electra founder, CEO and Chairman John Langford said in a statement. “Electra will be able to take you from downtown Manhattan not only to [John F. Kennedy International Airport], but to Washington, D.C. It will bring air service to thousands of communities where air travel today is not a practical or affordable option. It also opens vast new opportunities for middle-mile cargo logistics.”

The Nov. 19 flight followed another that took off from the airport on Nov. 11; that all-electric flight was completed to test the aircraft’s electric battery system as a shakedown flight, Stewart said.

Electra has preorders from 30 customers for more than 1,700 aircraft, totaling a $6 billion backlog. In January, the company received an $85 million award from the Air Force to accelerate prototype development, testing and evaluation.

Langford founded Electra in 2020; the company has 40 employees and contractors. Langford previously co-founded Aurora Flight Services, a subsidiary of Arlington County-based Boeing. Langford also participates in the Virginia Innovation Partnership Corporation’s Advanced Air Mobility Alliance and the company in 2023 received a VIPC Commonwealth Commercialization Fund grant as well as an investment from VIPC’s Virginia Venture Partners. The value of the grant and award were not available.

News of the Goldfinch’s flight follows an announcement that Virginia has joined a collaborative with seven other states to expand the advanced air mobility sector. On Nov. 29, Electra announced that Bristow Group, a Texas based company that provides helicopter offshore energy transportation and search and rescue services globally to governments and the civilian sector, made a deposit for five of its future aircraft, which it will use to expand and diversify its portfolio. Bristow signed a memorandum of understanding with Electra in 2021, preordering up to 50 aircraft.

This story has been corrected since publication.

Federal Contractors | Technology 2023: DELBERT PARKS

In 2021, Parks joined Micron as site executive for its Manassas manufacturing lab. The facility’s 2019 expansion remains the largest economic deal in state history, with more than $3 billion in investments and 1,000 new hires planned by 2030.

Parks worked as an electrician during high school before earning his bachelor’s and master’s degrees in physics and mathematics from Stephen F. Austin State University. He began his career at Philips Electronics before moving to Texas Instruments in 2004. There, he rose through the ranks to become site manager for multiple factories.

 Parks serves on the boards of the George Mason University Foundation and the Northern Virginia Technology Council. In summer 2022, Gov. Glenn Youngkin reappointed him to the board of visitors at Norfolk State University, where Micron opened a 6,000-square-foot clean room in fall 2021.

The Idaho-based semiconductor manufacturer reported $30.8 billion in fiscal 2022 revenue. In July, Micron officials joined Gov. Glenn Youngkin, U.S. Sen. Mark Warner, Virginia Tech President Tim Sands and other partners to sign a memorandum of understanding launching the Virginia Alliance for Semiconductor Technology to develop talent and establish manufacturing and research facilities.

ASRC Federal buys Manassas defense contractor

Reston-based ASRC Federal Holding Co. has acquired Manassas-based defense contractor Broadleaf Inc., ASRC announced Monday.

Financial details of the transaction were not disclosed.

Founded in 2009, Broadleaf is a U.S. Small Business Administration Certified Native Hawaiian Organization. The company provides information technology services and professional services. Broadleaf was No. 977 on the 2022 Inc. 5000 list of the U.S.’s fastest-growing privately held companies.

“Broadleaf is thrilled to join the ASRC Federal family,” Broadleaf President Vince Apesa said in a statement. “Our team is passionate about driving mission success for our customers, and we look forward to joining forces with the depth of resources and talent available at ASRC Federal to provide even greater value to those we serve.”

Nearly 600 Broadleaf employees will join ASRC Federal, and the acquisition adds Department of Defense and federal civilian customers to ASRC Federal’s portfolio.

“This acquisition strengthens and expands our presence within key [DOD] agencies while also providing growth opportunities with new customers,” ASRC Federal President and CEO Jennifer Felix said in a statement. “I know the high-performing team at Broadleaf will blend seamlessly with the ASRC Federal culture, and together we’ll continue to excel in the support of important customer missions.”

The Broadleaf acquisition follows a March announcement that ASRC Federal would buy Reston-based Science Applications International Corp.’s logistics and supply chain management business for $350 million in cash.

ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation. Its family of companies provides engineering, IT, infrastructure and professional services support. ASRC Federal has about 8,000 employees and operations across 44 states, districts and territories.

Manassas company to develop short takeoff, landing aircraft for Air Force

Manassas-based aerospace company Electra.aero Inc. has received a Strategic Funding Increase award from the U.S. Air Force’s AFWERX arm that secures up to $85 million for development of a prototype electric short takeoff and landing (eSTOL) aircraft.

The award, announced Thursday, secures funding between private investments, government funding and matching Small Business Innovation Research (SBIR) funding for the development, testing and evaluation of a full-scale pre-production prototype. AFWERX is a technology directorate of the Air Force Research Laboratory — the Air Force’s center for research and development — that teams technology developers with Air Force and Space Force personnel.

The company’s eSTOL is designed to operate in spaces the size of a soccer field and can fly missions including cargo logistics, executive transport and humanitarian assistance and disaster response in urban remote areas. Electra plans to test a two-seat piloted eSTOL demonstrator aircraft at the Manassas Airport Electra facility in the spring, and the award will accelerate Electra’s development of a commercial nine-passenger eSTOL product aircraft that would support Air Force missions of interest. The aircraft would have a 2,500-pound payload, allowing it to carry nine passengers, two pilots and 50 pounds of baggage over 400 nautical miles, although the payload specifications are subject to change, according to Electra’s website.

“This STRATFI award reinforces the Air Force’s commitment to dual-use eSTOL technology as a solution for national security and other government missions and validates Electra’s aircraft design and engineering work to date,” Electra founder, Chairman and CEO John S. Langford said in a statement.

The award builds on Electra’s six active USAF SBIR and Small Business Technology Transfer Phase II and Phase III contracts, used to develop eSTOL technology aspects such as distributed electric propulsion, blown lift aerodynamics and acoustics, precision flight controls and hybrid-electric powertrains. Electra is a partner of the AFWERX’s Agility Prime program, which aims to accelerate the commercial market for advanced air mobility vehicles and mitigate regulatory risks.

“It’s vital that we ensure new advanced air mobility technologies with dual-use applications are developed and manufactured here at home in the U.S.,” Lt. Col. John “Wasp” Tekell, the Air Force’s Agility Prime program lead, said in a statement. “Electra’s eSTOL technology has the potential to deliver valuable logistics and mobility capabilities to the Air Force.”

Founded in fall 2020, Electra is focused on developing hybrid-electric, ultra-short takeoff and landing airplanes and has 40 employees and contractors. Electra has received more than 1,000 eSTOL aircraft orders from commercial customers, according to a news release.

Granules India announces $12.5M pharma facility

Indian pharmaceutical company Granules India Ltd. will invest $12.5 million to establish a pharmaceutical packaging operation in Prince William County, creating 57 jobs, Gov. Glenn Youngkin announced Wednesday.

Headquartered in Hyderabad, India, Granules India manufactures active pharmaceutical ingredients and other related products, including acetaminophen, ibuprofen and guaifenesin, the main ingredient in Mucinex. Granules India serves brand and generic drug companies in more than 75 countries and has eight manufacturing facilities around the world. It has an existing pharmaceutical research and development facility in Fairfax with 130 employees.

Granules India will lease 79,000 square feet of the Parkway 66 property at 7413 Cushing Road in Manassas. It will build out packaging lines and clean rooms to package and ship products. The facility will be part of the company’s consumer health division, which was previously outsourced.

“Virginia continues to attract pharmaceutical manufacturing, and Granules India’s new packaging operation in Prince William County is an important addition to the pharmaceutical ecosystem in the commonwealth,” Youngkin said in a statement.“The company’s decision to expand its footprint in Virginia is a testament to our infrastructure and robust workforce, and we look forward to further development of this partnership.”

The Virginia Economic Development Partnership worked with Prince William County to secure the project. Former Gov. Ralph Northam approved a $200,000 grant from the Commonwealth’s Opportunity Fund to assist Prince William County with the project.

“The addition of a U.S. packaging facility will result in Granules being among the few pharmaceutical companies to be vertically integrated from API (active pharmaceutical ingredient) to packaging, which will bolster the robustness of Granules’ supply chain while also enabling the company to react even faster to consumers’ growing needs for pharmaceutical products,” said Krishna Prasad Chigurupati, Granules’ founder, chairman and managing director. “The company chose Virginia because of Prince William County’s responsiveness, which allowed Granules faster access to commercialization. In addition, Prince William offers a dynamic and diverse workforce that is eager to work along with the site’s proximity to several major seaports. Granules also chose to expand within Virginia to leverage its existing manufacturing footprint and workforce.”