** BluGlass plunges as much as 22.4% to A$0.0225, the lowest since May 26, 2020

** Semiconductor developer says microelectronics project, of which co is a part, not selected for funding by the U.S. Department of Defense (DoD)

** Funding part of DoD and White House's "Leap Ahead" awards to improve performance of microelectronics like transistors and switches

** Says co eligible to apply for next round of funding

** About 5.6 mln shares traded, 3x the 30-day avg

** Stock posts biggest intraday pct loss since Feb. 12

** BLG down ~62% YTD

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))