CHIPS AND SCIENCE ACT: Implementation Resources

As Governors look to implement and support myriad provisions in the CHIPS and Science Act, this resource page provides a one-stop-shop for Governors and their advisors. Along with resources prepared by the National Governors Association on the bipartisan Infrastructure Investment and Jobs Act (IIJA) and Inflation Reduction Act (IRA), this CHIPS resource page aims to support Governors and their advisors as they look to leverage various federal, state, and private sector funding opportunities to achieve their goals.

The $280 billion bipartisan Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 was signed into law by the President on August 9, 2022.

The law focuses on federal aid to encourage the construction of microprocessor manufacturing facilities in the United States, and provides subsidies to manufacture semiconductors in the U.S., boost science and technology research, address China’s anti-competitive trade practices and promote STEM education and workforce development.

Federal Resources

Congressional Resources
  • On October 2, 2024, President Biden signed the Building Chips in America Act of 2023 (S. 2228) into law which exempts certain projects that receive funding under the CHIPS and Science Act from National Environmental Policy Act (NEPA) reviews. The legislation is intended to ensure federal environmental reviews are completed in a timely manner for semiconductor projects supported by the CHIPS Act by streamlining approval for projects currently under construction and others that could be delayed. For more information, please see the Press Release.
  • The CHIPS and Science Act of 2022 was signed by the President on August 9, 2022.
  • CHIPS and Science Act of 2022 Section-by-Section Summary
  • The 2023 Omnibus Appropriations Bill appropriated $1.8 billion in funding for the CHIPS and Science Act, including $500m for Regional Innovation Technology Hubs, $200m for Recompete Pilot, $188m for the manufacturing Extension Partnership, $51m for Manufacturing USA and additional resources for NSF, DOE Office of Science and NIST. For additional information on Department of Commerce’s FY2023 allocations, please see Federal Funds Information for States (FFIS) analysis here (password protected for member states and territories)
  • Congressional Research Service: Semiconductors and the CHIPS Act: The Global Context, updated September 28, 2023
  • Congressional Research Service: Economic Development Administration Announces Phase 1 of New Tech Hubs Program, June 1, 2023
White House Resources
U.S. Department of Commerce Resources

The U.S. Department of Commerce has been tasked to oversee the $50 billion CHIPS for America Fund. This provides $39 billion in appropriated funds for a semiconductor manufacturing incentives program over 5 years and $11 billion in appropriated funds over 5 years for R&D and workforce measures. These measures complement Treasury’s 25% semiconductor manufacturing investment tax credit which has an estimated cost of $24 billion.

Deadline Extended: “Activate Fellowships” funded by CHIPS for America

Earlier in October 2024, CHIPS for America announced a new $5 million Entrepreneurial Fellowship Pilot Program, funded by the CHIPS and Science Act, to support up to 10 early-stage companies focused on innovations in semiconductor manufacturing technologies. The application portal for the Pilot Program can be found here: https://www.activate.org/apply. Applications for the 2025 Cohort have been extended and will now close on October 30, 2024. The first cohort of CHIPS R&D Entrepreneurial Fellows are expected to be selected in spring 2025. Activate hosted a webinar to share more about the fellowship program, including how to apply.

Brief updates from the CHIPS Program Office:

  • Small-Scale CHIPS Supplier Application Process: Earlier in 2024, the U.S. Department of Commerce’s CHIPS Program Office (CPO) received over 100 concept plans for the small-scale supplier NOFO. These projects support the expansion of domestic semiconductor manufacturing being spurred by the CHIPS Act — everything from chemical suppliers to semiconductor tools to close critical gaps in the U.S. supplier semiconductor landscape, advance U.S. technology leadership, and support vibrant domestic semiconductor clusters. In April 2024, the Department invited 50 of the strongest projects to submit full applications. Since then, CPO has completed the initial review of those applications and is now in the process of conducting a comprehensive merit review for all 50.
  • Commitments to CHIPS Women in Construction Framework: According to the Bureau of Labor Statistics, in 2023, women represented just 10.9% of the construction industry and 4.2% of construction occupations. To help bring more women into the construction labor force, the U.S. Department of Commerce (DOC) launched the CHIPS Women in Construction Framework, a set of 5 best practices aimed at expanding the construction workforce by increasing the participation of women and economically disadvantaged individuals. Commitment to the Framework is open to all CHIPS applicants that have entered into non-binding preliminary memoranda of terms (PMTs) with the Department. DOC has started to announce voluntary commitments by semiconductor manufacturing companies to adopt the Framework and this link provides updates on Intel and Micron.
  • CHIPS Sustainability Video: In September 2024, the CHIPS for America Research and Development (R&D) Office hosted a workshop focused on increasing sustainability in semiconductor manufacturing materials. A newly-posted video includes the opening sessions including remarks from Under Secretary Locascio, Director of the National Institute of Standards & Technology, and Arati Prabhakar, Director of the White House Office of Science & Technology Policy, as well as an expert panel discussion featuring representatives from industry, academia, government, and civil society.

Natcast Releases National Semiconductor Technology Center Strategic Plan

On October 24, 2024, Natcast released the inaugural National Semiconductor Technology Center (NSTC) Strategic plan. The plan outlines a comprehensive strategy for building the NSTC as an enduring institution that will strengthen and extend U.S. leadership in semiconductor technology. See the full strategic plan at Natcast.org.

Commerce Signs Non-Binding Preliminary Memorandum of Terms with Hemlock Semiconductor

On October 21, 2024, the U.S. Department of Commerce announced that it had signed a non-binding preliminary memorandum of terms (PMT) to provide up to $325 million to Hemlock Semiconductor in proposed direct funding under the CHIPS and Science Act. The proposed funding would support the construction of a new manufacturing facility on HSC’s existing campus in Hemlock, Michigan, dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon. The proposed project is estimated to create nearly 180 manufacturing jobs and over 1,000 construction jobs over time. Founded in 1961, HSC is the only U.S.-based manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market. Polysilicon is the foundational material for microprocessors, artificial intelligence chips, memory, and power devices.

Commerce Issues $1.6B Notice of Funding Opportunity for Semiconductor Advanced Packaging R&D

On October 18, 2024, the U.S. Department of Commerce issued a $1.6 billion Notice of Funding Opportunity to enable to U.S. semiconductor industry to adopt innovative new advanced packaging flows for semiconductor technologies, which allow multiple components to be combined into a single electronic device more effectively. CHIPS for America anticipates making awards between $10 million to $150 million each spanning five areas of research and development (R&D): equipment, tools, processes, and process integration; power delivery and thermal management; connector technology, including photonics and radio frequency; chiplets ecosystem; and co-design/electronic design automation. See also the Vision for the National Advanced Packaging Manufacturing Program (NAPMP). Concept papers are required and due on December 20.

Natcast Announces Anticipated Awardees, Approximately $30 Million Investment through First NSTC R&D Jump Start Project

On October 18, 2024, Natcast, the purpose-built, nonprofit operator of the NSTC, announced 3 anticipated awardees and approximately $30 million in funding through the first NSTC R&D Jump Start project — the Artificial Intelligence Driven RF Integrated Circuit Design Enablement (AIDRFIC) program. The anticipated awards will revolutionize RFIC design by integrating artificial intelligence (AI) and machine learning (ML) technologies, addressing one of the U.S. semiconductor industry’s most pressing design productivity challenges and strengthening U.S. leadership in broadband, 5G, and next-generation radio-frequency hardware. The 3 anticipated proposal teams for awards are led by Keysight Technologies, Princeton University, and the University of Texas at Austin. They each comprise top experts from academia and industry.

Administration Announces Preliminary Terms with Infinera to Support Development of Semiconductor Technology for Communications and National Security

On October 17, 2024, the Administration announced that the U.S. Department of Commerce and Infinera have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $93 million in proposed direct funding under the CHIPS and Science Act. The proposed CHIPS funding would support the construction of a new fab in San Jose, California, and a new advanced test and packaging facility in Bethlehem, Pennsylvania. The proposed projects would be expected to increase Infinera’s existing domestic manufacturing capacity by an estimated factor of 10 and would create up to approximately 500 manufacturing jobs and 1,200 construction jobs.

U.S Department of Commerce Signed Preliminary Memorandum of Terms with Wolfspeed

On October 15, 2024, the U.S. Department of Commerce announced that it had signed a non-binding preliminary memorandum of terms to provide up to $750 million under the CHIPS and Science Act to Wolfspeed Inc. The proposed funding would support the construction of a new silicon carbide wafer manufacturing facility in Siler City, North Carolina, and the planned expansion of a device manufacturing facility in Marcy, New York. Wolfspeed is the world’s leading manufacturer of silicon carbide wafers and devices. The silicon carbide compound has favorable properties over traditional silicon. The devices manufactured by Wolfspeed power electric vehicles (EVs) and plug-in hybrids, and are used for renewable energy systems, industrial capacities, and AI applications. Wolfspeed also supplies next-generation silicon carbide technologies to the U.S. military for national security applications. For more information, see the press release here.

U.S. Department of Commerce Announces Preliminary Terms with Edwards Vacuum

On October 10, 2024, the U.S. Department of Commerce announced a non-binding preliminary memorandum of terms (PMT) with Edwards Vacuum to provide up to $18 million in proposed direct funding under the CHIPS and Science Act. The proposed funding would support the construction of a greenfield state-of-the-art manufacturing facility in Genesee County, New York, which the company first announced in 2022. The facility will produce the dry vacuum pumps needed for semiconductor production. This project is estimated to create approximately 600 jobs.

CHIPS Office Announces $5M Entrepreneurial Fellowship Pilot Program

On October 4, 2024, the CHIPS for America Office announced a new $5 million Entrepreneurial Fellowship Pilot Program, funded by the CHIPS and Science Act, to support up to 10 early-stage companies focused on innovations in semiconductor manufacturing technologies. The application portal for the Pilot Program can be found here. Applications for the 2025 Cohort are due by October 23, 2024. The first cohort of CHIPS R&D Entrepreneurial Fellows are expected to be selected in spring 2025.

Notice of Intent Issued on Artificial Intelligence-Powered  Autonomous Experimentation for Sustainable Semiconductor Materials

On October 2, 2024 the U.S. Department of Commerce issued a Notice of Intent (NOI) to announce an open competition demonstrating how AI can assist in developing new sustainable semiconductor materials and processes. This funding opportunity, expected to be announced later this year, will provide $100 million to award recipients that develop university-led, industry-informed, collaborations about artificial intelligence-powered autonomous experimentation (AI/AE) relevant to sustainable semiconductor manufacturing. For more information, you can see the Press Release and Notice of Intent. 

NSTC Membership Opened

On September 30, 2024, Natcast, the purpose-built, nonprofit operator of the National Semiconductor Technology Center (NSTC), announced the official launch of the NSTC Membership Program. A historic and long-lasting investment, the NSTC will bolster the U.S. semiconductor industry with a focus on innovation, collaboration, and education. This announcement marks a significant milestone in U.S. efforts to advance its competitive edge in semiconductor leadership. Click here to learn about NSTC membership.

Commerce Department Launches NSTC Workforce Center of Excellence

On September 25, 2024, the U.S. Department of Commerce announced it is launching the National Semiconductor Technology Center’s (NSTC) Workforce Center of Excellence (WCoE) with an expected $250 million investment over ten years to address the industry’s workforce development challenges. The NSTC WCoE will bring together stakeholders from across the private sector, government, nonprofits, training providers, community and technical colleges, universities, and labor organizations to develop innovative solutions and accelerate best practices. The WCoE will be the dedicated anchor institution that brings these stakeholders together.

NSTC Workforce Partner Alliance: As part of the WCoE announcement, Natcast, the nonprofit designated to operate the NSTC by the Commerce Department, announced more than $11 million in anticipated awards across more than a dozen states and nationally through the NSTC Workforce Partner Alliance (WFPA) to support workforce development efforts and address critical skills gaps across semiconductor research, design, manufacturing, and production. There will be three inaugural programs within the WCoE, each aimed at reshaping the semiconductor workforce development ecosystem: 1) the Amplifier Program focused on scaling, 2) the Signals Program to monitor trends and evaluate outcomes, and 3) the Connections Program to facilitate hands-on assistance. The WFPA is the first Amplifier Program award and is estimated to support innovative delivery models for more than 12,000 individuals, preparing them for long-term roles in the industry. Please see here for the list of inaugural awardees.

Workforce Advisory Board: To inform the work of the WCoE, Natcast is also establishing a Workforce Advisory Board comprised of key stakeholders from the private sector, government, nonprofits, training providers, labor, and academia. Nominations for advisory board members can be submitted online at www.natcast.org/workforce through November 1, 2024.

Federal partners: The WCoE is further working closely with relevant partners across the federal government, including:

  • Nine workforce hubs in relevant regions,
  • The National Science Foundation, through its National Network of Microelectronics Education,
  • The Department of Defense’s Microelectronics Commons workforce efforts,
  • The Department of Energy and its National Labs, and
  • The Department of Labor.

The WCoE will leverage these federal partnerships to ensure industry is able to access key assets across the federal government. To learn more about the NSTC, its Workforce Center of Excellence, Workforce Partner Alliance, inaugural cohort of WFPA awardees, and Workforce Advisory Board, visit Natcast.org.

Department of Commerce Makes First Award Under the CHIPS Commercial Fabrication Facilities Incentives Program

On September 24, 2024, the U.S. Department of Commerce announced its first award under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. This finalizes the award of up to $123 million in direct funding to Polar Semiconductor, following the previously signed preliminary memorandum of terms and the completion of the Department’s due diligence. The award will expand and modernize the company’s manufacturing facility in Bloomington, Minnesota. The Department will distribute the funds based on Polar’s completion of project milestones. The investment will support Polar’s efforts to almost double its U.S. production capacity of sensor and power chips within two years. It catalyzes a total investment of more than $525 million from private, state, and federal sources to transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry. For more information, you can see the press release here.

U.S. Department of Commerce Awards Nearly $5 Million to Small Businesses to Bring New CHIPS Technology to the Commercial Market

On September 19, 2024, the Administration awarded nearly $5 million to 17 small businesses across nine states under the Small Business Innovation Research (SBIR) Program. The SBIR Phase I awards will fund research projects to explore the technical merit or feasibility of an innovative idea or technology for developing a viable product or service for introduction in the commercial microelectronics marketplace.

This is the first award for the CHIPS Research & Development (R&D) Office. NIST measurement science, or metrology, is at the heart of advances from American chipmakers in coming years, like smaller, faster, chips that take less energy to make, operate and cool, with more functions at less expense. The CHIPS Metrology Program is building partnerships between researchers and industry to address the microelectronics industry’s metrology grand challenges. Learn more about the CHIPS Metrology Program and seven grand challenges.

The 17 award-winning projects were competitively selected from proposals submitted in response to a Notice of Funding Opportunity (NOFO) on multiple topics for research projects to help secure U.S. leadership in the global semiconductor industry. They are all Phase I SBIR awards, which are meant to establish the merit, feasibility and commercial potential of the proposed research and development projects. All 17 small businesses will be under consideration for a SBIR Phase II award in Spring 2025; each Phase II award can be funded up to $1,910,000.

Updated Fact Sheets: CHIPS Incentives Program – Commercial Fabrication Facilities, and More

On September 13, 2024, the U.S. Department of Commerce’s Chips Program Office issued updates to several earlier Chips Fact Sheets, as follows:

Commerce Provides Update on R&D Facility Selection Process

On July 12, 2024, the Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced the processes for selecting the first three research and development (R&D) facilities funded through the CHIPS and Science Act.

The Department and Natcast expect to issue a further update on the CHIPS R&D facilities later this fall. An initial universe of locations that meet the specifications, as described in previously-released Factsheets, have been identified as potential options for each of these facilities. These locations have been notified and are moving through the next stages of review.

For questions regarding site selection, please email FacilitiesRFI@natcast.org. To learn more about the CHIPS R&D facilities, visit natcast.org/facilities. To learn more about the CHIPS NSTC Programs, visit CHIPS.gov and read the NSTC Roadmap.

NSTC Proposers’ Day: Test Vehicle Innovation Pipeline 

On September 10, 2024, Natcast will host a Proposers’ Day for the National Semiconductor Technology Center’s (NSTC) second initial R&D topic: the Test Vehicle Innovation Pipeline (TVIP) program. The Proposers’ Day event will introduce the TVIP program and provide information and timelines for potential applicants. Natcast will provide an overview of the program goals, address questions, and provide opportunities for networking and teaming among attendees. The Proposers’ Day will be a hybrid virtual and in-person at the Westin Tysons Corner, Falls Church, Virginia.

The NSTC’s TVIP program will address the challenges in transitioning basic scientific discoveries from research into development. The TVIP program will provide a new family of test vehicles for semiconductor research which will be available to NSTC members. The Call for Proposals (CFP) was released August 28, 2024. The anticipated total program award funding is up to $55 million with 4-12 awards anticipated. Individual awards are expected to range from $1 million to $20 million.  The in-person registration deadline is September 4, 2024.  The webcast (virtual) registration deadline is Monday, September 9, 2024, at 12:00 PM ET. To learn more about TVIP, and register for Proposers’ Day, click here.

SAVE THE DATE: Workshop on Accelerating R&D for Sustainable Semiconductor Materials

On September 18, 2024, the CHIPS for America R&D Office will host a hybrid Workshop on Accelerating R&D for Sustainable Semiconductor Materials focused on increasing sustainability in semiconductor manufacturing materials. The workshop will include opening remarks from Under Secretary Laurie Locascio, Director of NIST and the Under Secretary of Commerce for Standards & Technology, and Arati Prabhakar, Director of the White House Office of Science & Technology Policy (OSTP) and Assistant to the President for Science & Technology. Their remarks will be followed by a moderated discussion with experts on sustainability opportunities, a listening session from Natcast that focuses on a sub-set of possible topics related to PFAS research, and breakout sessions on sustainable semiconductor materials discovery and deployment via artificial intelligence-powered autonomous experimentation (AI/AE). CHIPS for America – with its programs spanning manufacturing incentives and multiple areas of research and development – is uniquely positioned to work with stakeholders across the federal, state, and local government, industry, academia and research institutions, labor unions, and environmental groups to investigate, commercialize, and advance solutions in the sustainability space. On September 19, there will also be limited virtual one-on-one meetings with CHIPS staff.

The September 18 workshop will be hybrid, with limited in-person participation in Washington, DC. Registration details will be announced soon. To learn more about the workshop, click here.

CHIPS for America Announces New CHIPS Metrology Community of Practice

On August 28, 2024, CHIPS for America announced the launch of a new initiative — the CHIPS Metrology Community. The Community will:

  • Facilitate data and knowledge sharing across the CHIPS Metrology Seven Grand Challenges.
  • Support stakeholders shaping vital industry standards for boosting U.S. economic and national security competitiveness.
  • Serve as a central hub for industry collaboration, where members can work together to address common challenges and develop innovative solutions.
  • Be open to individuals from across the semiconductor industry, academia, consortia, and all career stages, from engineers to executives.

In August 2024, the CHIPS Metrology program kicked off 14 new projects; the metrology projects page will continue to be updated.

U.S. Department of Commerce Announces Preliminary Terms with HP to Support Development and Commercialization of Cutting-Edge Semiconductor Technologies

On August 27, 2024, the U.S. Department of Commerce and HP Inc. announced the signing of a non-binding preliminary memorandum of terms (PMT) to provide up to $50 million in proposed direct funding under the CHIPS & Science Act. The proposed funding would support the expansion and modernization of HP’s existing facility in Corvallis, Oregon, which is part of the company’s “lab-to-fab” ecosystem in the region that spans from research and development (R&D) activities to commercial manufacturing operations. Rooted in HP’s unique expertise in microfluidics and microelectromechanical systems (MEMS), the company’s innovative technology provides a unique pathway to drive improved performance and efficiency of semiconductor-based hardware. Among other products, the proposed funding would support the manufacturing of silicon devices that are key components of life sciences lab equipment which are used in drug discovery, single-cell research, and cell line development. The company’s devices serve important focus areas for public health initiatives, and enable performance efficiencies for partner institutions across academia, government, and the private sector including Harvard Medical School, the Centers for Disease Control & Prevention, and Merck.

HP plays a pivotal role in the National Science Foundation Engines Development Program – Advancing Semiconductor Technologies in the Northwest — to grow the semiconductor industry through strategic opportunities in innovation, entrepreneurship, research, manufacturing, workforce training, and more. Further, HP is working with Portland Community College on training and recruitment programs and has representatives serving on a technical advisory council for Linn-Benton Community College. HP opened its Corvallis campus to collaborative R&D efforts with academic institutions and startups, and donated a 25-year lease of a portion of its Corvallis campus to Oregon State University (OSU). This 80,000 sq. ft. manufacturing and R&D facility has incubated 39 companies, including 20 that spun out from OSU faculty and students. The Corvallis campus provides resources and tools for startups and entrepreneurs to build innovative products locally in Oregon and provides an opportunity for these companies to grow and reinvest in the domestic ecosystem. HP has also voluntarily adopted the CHIPS Women in Construction Framework and will work with contractors, trade unions, and other community and workforce partners to implement best practices aimed at expanding the construction workforce by increasing the participation of women and economically disadvantaged individuals.

Administration Announces Preliminary Terms with Texas Instruments to Expand U.S. Current-Generation and Mature-Node Chip Capacity

On August 16, 2024, the Administration announced that the U.S. Department of Commerce and Texas Instruments (TI) have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $1.6 billion in proposed direct funding under the CHIPS and Science Act to strengthen domestic supply chain resilience, advance our national security, and bolster U.S. competitiveness in current-generation and mature-node semiconductor production. TI specializes in the production of current-generation and mature-node chips, also referred to as “foundational” chips, which are the building blocks for nearly all electronic systems. TI’s planned projects would meaningfully support the increasing needs for economic and national security applications.

The proposed funding is estimated to create over 2,000 manufacturing jobs and thousands of construction jobs over time. It would support TI’s investment of more than $18 billion through the end of decade to construct three new state-of-the-art facilities, including two in Texas and one in Utah:

  • Sherman, Texas: Construction of two new large-scale fabrication facilities expected to produce essential chips, with anticipated production capacity of more than one hundred million chips every day. The Sherman site is one of the only greenfield production sites for chips on 300-mm wafers in the U.S.
  • Lehi, Utah: Construction of a new, large-scale fabrication facility which is anticipated to produce tens of millions of chips every day. This project represents the largest economic investment in Utah’s history.

The PMT includes $10 million in proposed dedicated workforce funding to support the development of the company’s semiconductor and construction workforce. TI has robust engagements with 40 community colleges, high schools, and military institutions across the U.S. to develop future semiconductor talent. The company also plans to partner with additional child care providers to increase availability of child care services near its facilities. The company has indicated that it plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $1.6 billion, the CHIPS Program Office would make approximately $3 billion in proposed loans – which is part of the $75 billion in loan authority provided by the CHIPS and Science Act – available to TI under the PMT.

U.S. Department of Commerce Releases Funding Updates Map and Data

The U.S. Department of Commerce has released a Funding Updates Map which provides a summary of projects funded through the CHIPS and Science Act $52 billion investment in supporting the domestic semiconductor industry. The map provides a comprehensive breakdown of company projects, including proposed funding sites and award amounts. For more information, you can find the Funding Map here.

CHIPS Releases Education and Workforce Development (EWD) Plan Guidebook

Earlier this summer on June 17, 2024, the CHIPS Research and Development Office released an Education and Workforce Development (EWD) Plan Guidebook. The CHIPS Research and Development (R&D) Office will invest $11 billion to ensure, among other objectives, that the United States develops and maintains a robust semiconductor workforce where inventors, designers, researchers, developers, engineers, technicians, and staff can meet evolving domestic government and commercial sector needs. To help meet these objectives, Notices of Funding Opportunity (NOFOs) released by the CHIPS R&D Office will often require applicants to submit an education and workforce development (EWD) plan. The guidebook will serve as a resource for applicants responding to NOFOs requiring an EWD plan.

Commerce Announces Preliminary Terms with SK hynix to Advance U.S. AI Supply Chain Security

On August 6, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and SK hynix have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $450 million in proposed federal incentives under the CHIPS & Science Act to establish a high-bandwidth memory advanced packaging fabrication and R&D facility. The proposed CHIPS investment builds upon SK hynix’s investment of approximately $3.87 billion in West Lafayette, Indiana, to build a memory packaging plant for artificial intelligence (AI) products and an advanced packaging R&D facility, creating approximately 1,000 new jobs and filling a critical gap in the U.S. semiconductor supply chain. With this announcement, the US will have preliminary agreements with all five of the world’s leading-edge logic, memory, and advanced packaging providers. No other economy in the world has more than two of these companies producing leading-edge chips on its shores.

This proposed investment would establish a research hub in Indiana because of SK hynix’s partnership with Purdue University, which hosts the largest facility of its kind at a US university, while bringing next-generation high-bandwidth memory and advanced packaging R&D to the US. As part of its workforce development efforts, SK hynix plans to work with Purdue University and Ivy Tech Community College to develop training programs and interdisciplinary degree curricula that will cultivate a high-tech workforce and build a reliable pipeline of new talent. Additionally, SK hynix plans to support the work of the Purdue Research Foundation and other local nonprofits and charities by building partnerships that provide community development, growth opportunities, and leadership training. SK hynix plans to claim the Department of the Treasury’s Investment Tax Credit, expected to be up to 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $450 million, the CHIPS Program Office would make up to $500 million of proposed loans – which is part of the $75 billion in loan authority provided by the CHIPS & Science Act – available to SK hynix under the non-binding PMT.

Administration Announces Preliminary Terms with Amkor Technology to Bring Cutting-Edge Advanced Packaging Technology to the US

On July 26, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Amkor Technology, Inc. have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $400 million in proposed direct funding under the CHIPS & Science Act. This proposed funding would support Amkor’s investment of approximately $2 billion and 2,000 jobs in a greenfield project in Peoria, Arizona, which will provide full end-to-end advanced packaging for the world’s most advanced semiconductors for applications in high-performance computing, artificial intelligence, communications, and automotive, end markets. As chip design approaches the technical limits of Moore’s Law, which posits that the number of transistors on a semiconductor doubles every two years, advanced packaging is widely believed to be the next frontier of innovation in the industry through its ability to drive enhanced power and performance.

As a result of proposed CHIPS funding, the U.S. will significantly expand domestic capacity for this critical piece of the semiconductor supply chain, further strengthening U.S. technology leadership. The company has indicated that it plans to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures. In addition to the proposed direct funding of up to $400 million, the CHIPS Program Office would make approximately $200 million of proposed loans – which is part of the $75 billion in loan authority provided by the CHIPS Act – available to Amkor under the PMT.

CHIPS for America Highlights CHIPS Regional Strategy

As part of the Administration’s broader place-based economic development agenda, CHIPS for America is working with key regions across the U.S. to provide the support needed for expanding and emerging regional semiconductor industry clusters to succeed. CHIPS for America is initially focusing these efforts in locations hosting commercial-scale manufacturing of leading-edge logic or leading-edge memory technology – building on a key objective of CHIPS’ Vision for Success. The regions are Arizona, Idaho, New York, Ohio, Oregon and Texas. CHIPS is integrating its regional strategy with existing programs and initiatives, including EDA’s Tech Hubs Programs, which were also created by the CHIPS & Science Act, as well as the White House Workforce Hubs, which are driving place-based workforce development efforts to train and connect Americans to good-paying jobs and playing a key part in attracting follow-on industry investment. To view Fact Sheets for Arizona, Idaho, New York, Ohio, Oregon and Texas, click here.

New Informational Video: CHIPS for America R&D Facilities Model & Process

As previously noted, the U.S. Department of Commerce and Natcast, operator of the National Semiconductor Technology Center (NSTC), announced the processes for selecting the first three NSTC research & development (R&D) facilities on July 12.  A newly-announced informational video explains the facilities model and section process.

Summary Report: CHIPS R&D Program Standards Summit

CHIPS R&D has developed a comprehensive standards roadmap that responds to calls from the private sector for semiconductor standards efforts, the requirements of the CHIPS legislation, and provisions of the U.S. Government National Standards Strategy for Critical & Emerging Technology. A CHIPS R&D Program Standards Summit was held as the first of the CHIPS R&D standards activities. The Summit brought together private sector thought leaders who provided insights for the semiconductor sector covering: strategic standards priorities, innovation in standards development, education and workforce needs, and linking standards and research. To view the Summary Report, click here.

Commerce Invites Three Teams to Submit Applications for CHIPS Manufacturing USA Institute

On July 19, 2024, the U.S. Department of Commerce announced that three teams have been invited to submit full applications for the CHIPS Manufacturing USA funding opportunity to establish and operate a CHIPS Manufacturing USA Institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. Unlike traditional physical research models, digital twins can exist in the cloud, which enables collaborative design and process development by engineers and researchers across the country, creating new opportunities for participation, speeding innovation, and reducing costs of R&D. Digital twin-based research can also leverage emerging technology like AI to help accelerate the design of new U.S. chip development and manufacturing concepts and significantly reduce costs. The CHIPS for America Program anticipates awarding up to approximately $285 million for a first-of-its kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes. Full applications from the three teams are due on September 9, 2024. The CHIPS Manufacturing USA Institute will join an existing network of 17 Manufacturing USA institutes designed to secure the future of U.S. manufacturing through innovation, education, and collaboration. For information on other opportunities, click here.

Administration Announces Preliminary Terms with GlobalWafers to Increase US Silicon Wafer Production

On July 17, 2024, the U.S. Department of Commerce and GlobalWafers America LLC and MEMC LLC, subsidiaries of GlobalWafers Co., Ltd., signed a non-binding preliminary memorandum of terms  (PMT) to provide up to $400 million in proposed direct funding under the CHIPS & Science Act to help onshore critical semiconductor wafer production and advance U.S. technology leadership. President Biden signed the bipartisan CHIPS & Science Act to usher in a new era of semiconductor manufacturing in the U.S., bringing with it a revitalized domestic supply chain, good-paying jobs, and investments in the industries of the future. The proposed CHIPS investment would support the construction of new wafer manufacturing facilities and the creation of 1,700 construction jobs and 880 manufacturing jobs. This proposed investment will support projects with total capital expenditures of approximately $4 billion across Texas and Missouri.

CHIPS for America Due Diligence Process Fact Sheet

On July 15, 2024, the CHIPS Program Office released a Due Diligence Process Fact Sheet outlining the due diligence phase of the CHIPS Program Office’s investment process as part of the Commercial Fabrication Facilities Notice of Funding Opportunity (NOFO). The purpose of due diligence is for the Department to validate material facts of the application, address critical risks identified in the previous merit review, and uncover any new information that may impact the size, nature, or timing of the proposed award. The outcome of the due diligence process will determine whether the CHIPS Program Office advances the applicant to an award. To view the Due Diligence Process Fact Sheet, click here.

Administration Announces First CHIPS for America R&D Facilities and Selection Processes

On July 12, 2024, the U.S. Department of Commerce and Natcast, operator of the National Semiconductor Technology Center (NSTC), announced the processes for selecting the first 3 research and development (R&D) facilities funded through the CHIPS & Science Act. The facilities include: a NSTC Prototyping and National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Piloting Facility; a NSTC Administrative and Design Facility; and a NSTC Extreme Ultraviolet (EUV) Center.

1)      The NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility will combine state-of-the-art manufacturing and packaging and next-generation technology development to provide NSTC members and NAPMP funded researchers with 300mm research, prototyping, and packaging capabilities. Co-locating the NSTC research and development prototyping and NAPMP packaging capabilities in a single facility will provide the domestic semiconductor ecosystem with unique value to conduct collaborative semiconductor and advanced packaging research.

2)      The NSTC Administrative and Design Facility will be a multi-functional facility, serving as the location for key operations of the NSTC, including: hosting Natcast administrative functions, convening consortium members and conducting NSTC programmatic activity such as the Workforce Center of Excellence, NSTC Design Enablement Gateway, and advanced semiconductor research in chip design, electronic design automation, chip and system architecture, and hardware security.

3)      The NSTC EUV Center will provide NSTC members with access to EUV technology to facilitate a wider range of research and a path to commercialization, including technologies with the most challenging feature sizes. Next-generation technology development requires access to EUV lithography. In addition to access to EUV technology, this center will also provide appropriate space for Natcast researchers and staff as well as member assignees to conduct research and collaborate in the facility.

To learn more about the above three facilities visit Natcast’s website. The CHIPS R&D facilities model is informed by more than a year of discussions with stakeholders building on release of the NSTC Vision and Strategy Paper and the NAPMP Vision Paper, and robust analysis on the current and planned future state of the U.S. semiconductor manufacturing and R&D ecosystems.

Selection Process: The week of July 15, 2024, the Department and Natcast will issue an “Ecosystem Questionnaire for States and Territories to Inform CHIPS R&D Facility Site Selection Process” (Ecosystem Questionnaire) to the Economic Development Organizations (EDOs) of all 56 states, territories, and the District of Columbia to identify thriving and vibrant semiconductor ecosystems that could potentially support the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility. EDOs will receive notice as soon as the Ecosystem Questionnaire is live and will have one week to complete it in order to be considered for the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility.

More information on the selection process for the NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility (as well as the NSTC Administrative and Design Facility and NSTC EUV Center) can be found here. If you have questions regarding these opportunities, please email FacilitiesRFI@natcast.org. To learn more about the CHIPS NSTC Programs, visit CHIPS.gov and read the NSTC Roadmap.

Commerce Releases $1.6B NOI for CHIPS R&D

On July 9, 2024, the U.S. Department of Commerce’s CHIPS Research & Development (R&D) Office issued a Notice of Intent (NOI) to open a competition for new R&D activities that will establish and accelerate domestic capacity for semiconductor advanced packaging. Commerce anticipates awarding up to $1.6 billion in funding across five R&D areas: 1) equipment, tools, processes, and process integration; 2) power delivery and thermal management; 3) connector technology including photonics and radio frequency; 4) chiplets ecosystem; and 5) co-design/electronic design automation. These research areas are outlined in the vision for the National Advanced Packaging Manufacturing Program (NAPMP). Through potential cooperative agreements, CHIPS for America would make several awards of approximately $150 million in each research area.  A webinar on this NOI is here.  For more information about the NOI, click here.

New Information: Natcast Workforce Partner Alliance Program Funding Opportunity

On July 1, 2024, Natcast, operator of the National Semiconductor Technology Center (NSTC), released the first NSTC workforce funding opportunity. The NSTC Workforce Partner Alliance (WFPA) program will invest in initiatives addressing critical U.S. job and skill gaps across semiconductor design, manufacturing, and production. This initial workforce program plans to make awards to 4-10 high-impact projects. State agencies are among the eligible applicants. Project proposals should be one (1) to two (2) years in duration with a total budget between $500,000 and $2 million per award. See the call for proposals here. Applications are due July 26, 2024. The U.S. Department of Commerce expects to invest hundreds of millions of dollars in the NSTC’s workforce efforts, including the creation of a Workforce Center of Excellence. For more information on the Workforce Partner Alliance Program and Natcast, click here.

Commerce Announces Preliminary Terms with Rogue Valley Microdevices to Support Construction of New Foundry

On July 1, 2024, the Administration announced that the U.S. Department of Commerce and Rogue Valley Microdevices (RVM) have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.7 million in proposed direct funding under the CHIPS & Science Act. The proposed CHIPS investment would support the construction of RVM’s pure play microelectromechanical systems (MEMS) and sensor foundry facility in Palm Bay, Florida, and is estimated to nearly triple RVM’s manufacturing capacity. MEMS are microscale devices that integrate electrical and mechanical components; their integration with semiconductor components across a wide range of applications enables technology advancements and improved performance. RVM is one of the only U.S.-based pure play MEMS foundries which specializes in the high-mix, low-volume wafer and MEMS foundry services that are important to the defense industrial base and to the biomedical industry. With this proposed investment, the Administration would be supporting a reliable, domestic supply of MEMS devices manufactured on 300mm wafers, further strengthening U.S. supply chain resilience while creating over 75 jobs in the state of Florida.

NSTC Call for Proposals: Artificial Intelligence (AI)-Driven RF Integrated Circuit Design Enablement

On June 28, 2024, Natcast released the first call for proposals for the National Semiconductor Technology Center’s (NSTC) initial research and development (R&D) programs. This first NSTC R&D program will address the domestic radio frequency (RF) integrated circuit (IC) industry and is focused on the adaptation of Artificial Intelligence (AI) and Machine Learning (ML) technology for use in RF design. Its objective is the successful demonstration of AI-based tools used to improve design productivity for RFICs, thus lowering the risk of further investment in technology commercialization. Natcast anticipates awarding funding up to $30 million across multiple projects. Applicants must submit an executive summary by July 25, 2024, by 5 PM EDT. A webinar recording on AI-driven RF IC (AIDRFIC) design enablement is here. For more information about AIDRFIC and the application process, click here.

Administration Announces Preliminary Terms with Entegris to Onshore Supply Chain Materials for Chip Production

On June 26, 2024, the Biden-Harris Administration announced that the Department of Commerce and Entegris, a key supplier of advanced materials and process solutions for leading-edge chipmakers, have reached a non-binding preliminary memorandum of terms (PMT) to provide the company with up to $75 million in proposed federal incentives under the CHIPS & Science Act. The proposed investment would onshore critical semiconductor supply chain and manufacturing materials for leading-edge chip production and create nearly 600 direct manufacturing jobs over a period of several years, and approximately 500 construction jobs by 2030. The CHIPS investment would support Entegris’ construction of its state-of-the-art manufacturing center in Colorado Springs, where it will partner with Microchip Technology Inc., Pikes Peak State College, Pikes Peak Business, and Education Alliance, as well as various school districts and universities, to collaborate on workforce development and create a self-sustaining ecosystem in Colorado Springs and the Mountain West region.

U.S. Department of Commerce Announces Two New Voluntary Company Commitments to the CHIPS Women in Construction Framework

On June 18, 2024, the U.S. Department of Commerce announced GlobalFoundries and Polar Semiconductor have voluntarily committed to adopt the CHIPS Women in Construction Framework. The Framework is part of U.S. Secretary of Commerce Gina Raimondo’s ongoing Million Women in Construction initiative that aims to expand the American construction workforce by doubling the number of women in construction over the next decade. Under the Framework, companies will work with contractors, trade unions, and other community and workforce partners to implement best practices that will expand the construction workforce by increasing the participation of women and economically disadvantaged individuals.

Administration Announces Preliminary Terms with Rocket Lab to Expand Production of Compound Semiconductors that Power Spacecrafts and Satellites

On June 11, 2024, the Biden-Harris Administration announced that the Department of Commerce and Rocket Lab, the parent company of space power provider SolAero Technologies Corp., have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $23.9M in direct funding under the CHIPS & Science Act. The proposed CHIPS investment would help create a more robust and resilient supply of space-grade solar cells that power spacecrafts and satellites. The modernization and expansion project would increase Rocket Lab’s compound semiconductor production by 50% within the next three years – helping to meet the growing national security and commercial demand for these solar cells in the United States.

CHIPS for America and Natcast Release 2024 Roadmap for the National Semiconductor Technology Center

On May 24, 2024, CHIPS for America and Natcast, the operator of the National Semiconductor Technology Center (NSTC), released a roadmap outlining a vision for progress in 2024. The roadmap highlights some of the top priorities of the NSTC, including facilities, workforce, initial R&D funding opportunities, and membership. A historic and long-lasting investment, the NSTC is one of CHIPS for America’s Research and Development (R&D) programs. As a public-private consortium, the NSTC is where members will have access to facilities, partners, an investment fund, and additional resources and funding opportunities to research, test, and scale-up semiconductor technologies and workforce activities. The NSTC will be a thriving semiconductor research center that will serve as an engine of innovation for decades to come. You can find more information about the CHIPS NSTC Program on chips.gov and Natcast at Natcast.org. To access the roadmap, click here.

Administration Announces Preliminary Terms with Absolics

On May 23, the Biden-Harris Administration announced that the U.S. Department of Commerce and Absolics, an affiliate of the Korea-based SKC, have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $75 million in direct funding under the CHIPS & Science Act to help advance U.S. technology leadership. The proposed CHIPS investment would support the construction of a 120,000 square-foot facility in Covington, Georgia and the development of substrates technology for use in semiconductor advanced packaging. The proposed investment with Absolics is the first proposed CHIPS investment in a commercial facility supporting the semiconductor supply chain by manufacturing a new advanced material.

Commerce Announces Preliminary Terms with Polar Semiconductor

On May 13, the U.S. Department of Commerce announced it had reached a non-binding preliminary memorandum of terms (PMT) with Polar Semiconductor to provide the company with up to $120 million in proposed federal incentives under the CHIPS & Science Act. The funding would catalyze private and state investment to expand Polar’s manufacturing facility and introduce new technology capabilities in Bloomington, Minnesota. This would enable Polar to double its U.S. production capacity of sensor and power chips within 2 years and bring in more U.S. private capital to transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically.

CHIPS for America Announces $285 million Funding Opportunity for a Digital Twin and Semiconductor CHIPS Manufacturing USA Institute

On May 6, 2024, the Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA Institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. The CHIPS Program anticipates up to approximately $285 million for a first-of-its kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes.

The CHIPS Manufacturing USA institute will join an existing network of 17 Manufacturing USA Institutes designed to secure the future of US manufacturing through innovation, education, and collaboration. The CHIPS institute is the first Manufacturing USA Institute launched by the U.S. Department of Commerce under the Biden Administration.

Unlike traditional physical research models, digital twins can exist in the cloud, which enables collaborative design and process development by engineers and researchers across the country, creating new opportunities for participation, speeding innovation, and reducing R&D costs. This type of research can also leverage emerging technology like artificial intelligence.

Funded activities are expected to include, but not necessarily be limited to: 1) operational activities to run the Institute; 2) basic and applied research related to semiconductor digital twin development; 3) establishing and supporting shared physical and digital facilities; and 4) industry-relevant demonstration projects; and related workforce training.

Mandatory concept papers are due June 20, 2024. 

CHIPS Program Office Selects 53 Projects to Advance to Full Application Phase of Funding Opportunity for Small-Scale Supply Chain Projects 

The CHIPS Program Office (CPO) has selected 53 projects to advance to the Full Application phase in its Notice of Funding Opportunity (NOFO) for Small-Scale Suppliers. Invited applicants were notified and must submit their Full Applications by July 1, 2024, at 5PM ET.

This funding opportunity was highly competitive. CPO received 165 Concept Plans for projects (representing roughly $13 billion in capital expenditures) located across 30 states, with Arizona, Texas, and California being the largest states represented. Among those concept plans submitted, 41 projects came from 15 consortia, in line with CPO’s recommendation to apply in groups that would leverage existing connections between companies, state and local governments, and other regional organizations to build regional semiconductor clusters. CPO has reserved up to $500 million for CHIPS Direct Funding under this funding opportunity and was only able to select about 30% of projects (representing roughly $6 billion capital expenditures) to advance to the Full Application stage.

The Small-Scale Supplier NOFO, released in September 2023, requested applications for projects with capital investment below $300 million involving the construction, expansion, or modernization of commercial facilities in the US for semiconductor materials and equipment.  Available resources include Full Application Instructions, Fact Sheet, and FAQs. CPO anticipates hosting webinars and one-on-one sessions with each applicant before the Full Application deadline and will follow up accordingly.

U.S. Department of Commerce Announces Non-Binding Preliminary Memorandum of Terms with Micron Technology

On April 25, the U.S. Department of Commerce announced it had signed a non-binding preliminary memorandum of terms (PMT) with Micron Technology to provide up to $6.14 billion in direct funding under the CHIPS and Science Act. The proposed funding would support the construction of two leading-edge Dynamic Random-Access Memory (DRAM) fabs in New York, the first step in Micron’s two-decade vision to invest approximately $100 billion in New York and create roughly 13,500 facility and construction jobs. In addition, the proposed funding would unlock a $25 billion investment in a DRAM fab in Idaho, which will be co-located with Micron’s R&D facilities in Boise and create approximately 6,500 facility and construction jobs. Micron is widely recognized as a global leader in leading-edge DRAM technology and production and is the only U.S.-based manufacturer of memory chips. Currently, all leading-edge DRAM chip manufacturing takes place in East Asia and these investments would advance the company’s plans to onshore approximately 40% of their DRAM chip production over the next two decades. Learn more in the press release here. 

CHIPS for America Announces over $50M Funding Opportunity to Encourage Small Business R&D

On April 16, 2024, the U.S. Department of Commerce issued a Notice of Funding Opportunity for its Small Business Innovation Research Program. This program is seeking applications from eligible small businesses to explore the technical merit or feasibility of an innovative idea or technology for developing a viable product or service for introduction in the commercial microelectronics marketplace. The CHIPS for America program anticipates up to approximately $54 million in funding across multiple topics on research projects for critically needed measurement services, tools, and instrumentation; innovative manufacturing metrologies; novel assurance and provenance technologies and advanced metrology research and development (R&D) testbeds to help secure U.S. leadership in the global semiconductor industry. Full applications are due on June 14, 2024 and NIST anticipates funding approximately 24 awards. Please see the NOFO and press release for more information.

Administration Announces PMT with Samsung Electronics to Establish Semiconductor Ecosystem in Central Texas

On April 15, 2024 it was announced that the U.S. Department of Commerce and Samsung Electronics have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.4 billion in direct funding under the CHIPS and Science Act. Samsung – the only leading-edge semiconductor company that is a leader in both advanced memory and advanced logic technologies – is expected to invest more than $40 billion dollars in the coming years, and the proposed investment would support the creation of over 20,000 jobs. The proposed investment would turn Samsung’s existing presence in Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States, including two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, Texas, as well as an expansion to their existing Austin, Texas facility. In addition to the proposed direct funding of up to $6.4 billion, the company has indicated that it plans to claim the U.S. Department of the Treasury’s Investment Tax Credit, which is expected to cover up to 25% of qualified capital expenditures. For more information, please see the press release here.

Administration Announces Preliminary Terms with TSMC, Expanded Investment from the Company

On April 8, 2024, the Administration announced that the U.S. Department of Commerce and TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion in direct funding under the CHIPS & Science Act. This proposed funding would support TSMC’s investment of more than $65 billion in 3 greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors. TSMC has announced 2 nanometer technology at a second fab and an additional third fab to produce 2 nanometer, or more, advanced chips and an additional third fab before the end of the decade. The proposed CHIPS investment in Arizona would support AI, high-performance computing, 5G/6G communications, and more applications.

The PMT also proposes $50 million in dedicated funding to develop the company’s semiconductor and construction workforce. To build the long-term construction workforce needed to support these projects, TSMC Arizona recently signed an agreement with the Arizona Building & Construction Trades Council. The company also plans to utilize registered apprenticeship programs to meet a 15% apprenticeship utilization rate on the Phoenix construction site. As part of its commitment to developing local talent, TSMC Arizona established one of the first state-supported Registered Apprenticeship programs for semiconductor technicians, with support from the City of Phoenix. TSMC’s U.S.-based recruiting team is also actively collaborating with university engineering programs around the country, including Arizona State University, University of Arizona, and Purdue University, and is partnering with Maricopa Community Colleges and career technical education programs on initiatives to develop the skills for a career in the semiconductor industry. Site employees have access to discounts, reimbursements, and priority enrollment through partnerships for local area early education and childcare centers.

CHIPS Program Office Funding Opportunity Update

As of March 29, 2024, and due to overwhelming demand for CHIPS incentive funding, along with recent changes in the FY2024 appropriations law, the CHIPS Program Office has decided not to move forward at this time with the Notice of Funding Opportunity for the construction, modernization, or expansion of semiconductor research and development (R&D) facilities in the US. Bolstering domestic semiconductor R&D remains a top priority of the CHIPS for America program, and the CHIPS R&D Office, which is investing $11 billion into developing a robust domestic R&D ecosystem, has and will have future funding opportunities for R&D projects. CHIPS for America encourages interested parties to visit the CHIPS website to learn more about the National Semiconductor Technology Center (NSTC), the National Advanced Packaging Manufacturing Program (NAPMP), including the current NAPMP funding opportunity, CHIPS Metrology, CHIPS Manufacturing USA Program, and future announcements.

DOC Receives Over 160 Concept Plans Across 30 States for CHIPS Small Supply Chain Projects

On March 29, 2024, the U.S. Department of Commerce (DOC) announced significant interest in its funding opportunity for small supply chain projects. This funding opportunity, released in September 2023, requested applications for projects with capital investment below $300 million involving the construction, expansion, or modernization of commercial facilities in the United States for semiconductor materials and equipment. Since the opening of the Concept Plan phase of the application process in December 2023, the Department received a total of 165 concept plans for projects across 30 states, with Arizona, Texas, and California being the largest states represented. Among those concept plans submitted, 41 projects came from 15 consortia, in line with the Department’s recommendation to apply in groups that would leverage existing connections between companies, state & local governments, and other regional organizations to build regional semiconductor clusters.

Upcoming Webinar: Update on the NSTC, the First in a Series of NSTC Webinars

The CHIPS for America Research and Development (R&D) Program and Natcast, the operator of the CHIPS for America National Semiconductor Technology Center (NSTC), will host a webinar to provide an overview of the NSTC’s vision and mission, an update on 2024 priorities for the NSTC, the standing up of Natcast, and the first NSTC research opportunities. The NSTC, the centerpiece of the CHIPS for America R&D Program, is a public-private consortium for industry, customers, suppliers, educational institutions, workforce and labor organizations, entrepreneurs, government, and investors to accelerate the pace of new innovations from idea to marketplace. To that end, the Administration expects to invest over $5 billion in the NSTC with a core tenet of funding R&D projects that create long-term US leadership in semiconductor technology. While the long-term R&D strategy is being crafted, the NSTC has identified initial R&D programs which will kick-start the process of delivering impactful results through early investments in projects with a near-term time horizon. At least $100 million will be available to fund the first set of external teams through competitions expected to launch in the summer of 2024.

Join CHIPS NSTC Program Director, Jay Lewis, and Natcast Chief Executive Officer, Deirdre Hanford on April 9, 2024, 2:00 pm ET, for a discussion on early research, the NSTC Community of Interest, and additional updates on this historic program. Registration is required. This is the first of a series of monthly updates on the NSTC. Past webinars can be found at this link.

Commerce Announces Preliminary Terms with Intel to Support Investment in U.S. Semiconductor Technology

On March 20, 2024, the U.S. Department of Commerce and Intel Corporation announced a non-binding preliminary memorandum of terms (PMT) to provide up to $8.5 billion in direct funding under the CHIPS and Science Act to expand capacity and capabilities in Arizona, New Mexico, Ohio, and Oregon, estimated to directly create over 10,000 manufacturing jobs and nearly 20,000 construction jobs. The proposed CHIPS investment, coupled with Intel’s investment, would mark one of the largest investments ever announced in U.S. semiconductor manufacturing. The PMT also includes approximately $50 million in dedicated funding to develop the company’s semiconductor and construction workforce.

CHIPS for America Fact Sheets

On March 22, 2024, CHIPS for America released three new factsheets focused on federal incentives and the CHIPS Program Office application process:

  • CHIPS for America Factsheet: Federal Incentives
  • CHIPS for America Factsheet: Pre-Application Process
  • CHIPS for America Factsheet: Full Application Process

CHIPS Announces $300 million for Semiconductor Packaging

On February 28, the U.S. Department of Commerce issued a Notice of Funding Opportunity (NOFO) for research and development (R&D) that will establish and accelerate domestic capacity for advanced packaging substrates and substrate materials, a key technology for manufacturing semiconductors. The CHIPS Program anticipates awarding approximately $300 million in funding across multiple projects dedicated to materials and substrates research. Funded activities are expected to include basic and applied research, commercial viability and domestic manufacturing preparation, and integrated workforce education and training. The $300 million investment is a portion of approximately $3 billion dedicated to the CHIPS National Advanced Packaging Manufacturing Program (NAPMP). Concept papers are required and due on April 12, with full applications due on July 3. For more information, please see the Press Release and NOFO.  

Secretary Raimondo Delivers Update on CHIPS Act Implementation, Lays Road Ahead

On February 26, 2024, U.S. Secretary of Commerce Gina Raimondo delivered a major policy address at the Center for Strategic & International Studies (CSIS) on the implementation of the CHIPS & Science Act and the leading-edge technology investments by the Department of Commerce to boost innovation and revitalize American semiconductor manufacturing. The speech comes as the Administration continues to roll out the implementation phase of this historic legislation and sets priorities for award recipients to have their facilities operational by the end of the decade to meet the goals of the program. In the speech, she noted, “We’ve made a few decisions that I’m announcing now. We’ve decided to prioritize projects that will be operational by 2030 … There are many worthy proposals that we’ve received with plans to come online after 2030, and we’re saying no, for now, to those projects because we want to maximize our impact in this decade…”  In her speech, Secretary Raimondo also announced a major new goal for America’s semiconductor industry: “We anticipate America will produce 20% of the world’s leading-edge chips by the end of the decade, meaning our innovation capacity will no longer be as vulnerable to geopolitical challenges as it is today.” Watch Secretary Raimondo’s remarks here and read the full transcript here.

Administration Announces Preliminary Terms with GlobalFoundries to Strengthen Domestic Legacy Chip Supply for U.S. Auto and Defense Industries

On February 19, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and GlobalFoundries (GF) have signed a non-binding preliminary memorandum of terms (PMT) to provide approximately $1.5 billion in direct funding under the CHIPS and Science Act to strengthen U.S. domestic supply chain resilience, bolster U.S. competitiveness in current-generation and mature-node (C&M) semiconductor production, and support economic and national security capabilities. The proposed funding would support a new state-of-the-art facility, significant capacity expansion, and the modernization of GF’s U.S. manufacturing sites in Malta, New York, and Burlington, Vermont, which produce essential automotive, communications, and defense semiconductor technologies. President Biden signed the bipartisan CHIPS and Science Act to strengthen U.S. supply chains, create good-paying jobs, and advance U.S. economic and national security. This announcement is the third PMT announcement the Department of Commerce has made under the CHIPS and Science Act.

The approximately $1.5 billion will support projects in New York and Vermont and create approximately 10,500 construction and manufacturing jobs.  In recognizing the critical importance of child care for its operations, the company will not only continue to provide its $1,000 annual subsidy and child care support concierge service to its growing facility workforce but also extend these benefits to its construction workers. The company will be operating under an existing Project Labor Agreement (PLA) in New York and is in the process of establishing a PLA in Vermont for the purposes of this project. In addition to potential direct funding, the CHIPS Program Office would make approximately $1.6 billion in loans available to GF under the PMT. The total potential public and private investment for the combined projects would be approximately $12.5 billion.

Natcast launches NSTC Community of Interest and Survey

On February 9, the National Center for the Advancement of Semiconductor Technology (Natcast), the operator of the National Semiconductor Technology Center (NSTC), launched the NSTC Community of Interest, a zero-cost, pre-membership program, for interested stakeholders to provide input into the anticipated membership structure and program offerings of the NSTC.  As of February 16, 100+ organizations had signed up.  By completing the Community of Interest survey, participants can provide input on the NSTC program priorities and will be notified as opportunities emerge in their specific domain.  The survey is for any entity interested in participating in the semiconductor industry in the US, including: companies, educational institutions including community colleges, government bodies including state and local government, investors, workforce representatives, service providers, nonprofits, research entities, and others.  The survey is not intended for individuals. More information may be found on the Natcast website.

Administration Launches Next Phase for Over $5 Billion in CHIPS R&D Investments, Including the NSTC

On February 9, leaders from the U.S. Departments of Commerce, Defense, and Energy; the National Science Foundation; and the CEO of the National Center for the Advancement of Semiconductor Technology (Natcast) announced over $5 billion in expected investment in the CHIPS R&D program. They also formally established a public-private consortium for the National Semiconductor Technology Center (NSTC). The expected funding will include investments in the NSTC, a CHIPS Manufacturing USA Institute. The NSTC is the centerpiece of CHIPS for America’s $11 billion research and development (R&D) program. A once in-a-generation opportunity, the NSTC will bring together government, industry, labor, customers, suppliers, educational institutions, entrepreneurs, and investors to accelerate the pace of new innovations from idea to marketplace. As a public-private consortium, the NSTC will lower the barriers to participation in semiconductor R&D to create a more vibrant national ecosystem and to directly address fundamental needs for a skilled, diverse semiconductor workforce. With the official launch of the NSTC consortium, there are opportunities to express interest in joining the NSTC. Further information about this may be found on the Natcast website. Following the announcements and consortium agreement signing, leaders from across the semiconductor community participated in roundtables which centered on the R&D opportunities and need for industry participation.

Historically Black Colleges and Universities (HBCU) CHIPS Network Formed

On February 8, more than a dozen Historically Black Colleges and Universities(HBCUs) and the Georgia Institute of Technology kicked-off the HBCU CHIPS Network at the U.S. Department of Commerce. The newly formed network aims to combine resources and capabilities from each of these institutions to help train and educate the technology leaders of the future.

CHIPS Research and Development Office Announces Two Notices of Intent

During the week of January 29, the CHIPS for America Research and Development Office announced two Notices of Intent for R&D funding opportunities:

  • Notice of Intent: CHIPS Manufacturing USA Institute: CHIPS for America expects to invest approximately $200 million over a 5-year period in a CHIPS Manufacturing USA Institute to create the first-of-its-kind digital twin institute to lead the world in revolutionizing semiconductor and advanced packaging manufacturing. You can find the Notice of Intent here.
  • Notice of Intent: National Advanced Packaging Manufacturing Program (NAPMP) Materials and Substrates Research and Development: The U.S. Department of Commerce issued a Notice of Intent to announce a competition for new research and development (R&D) activities to establish and accelerate domestic capacity for advanced packaging substrates and substrate materials, a key technology for packaging semiconductors. The CHIPS for America program anticipates awarding approximately $300 million in funding for multiple projects in substrates and substrate materials research. Please see the Notice of Intent here.

CHIPS for America Semiconductor Technology Center Operator Natcast Announced New CEO

On January 16, Natcast, the expected operator of the CHIPS for America Semiconductor Technology Center (NSTC), announced that Deirdre Hanford will serve as the organization’s first CEO. Ms. Hanford has spent her career advancing the semiconductor ecosystem, having served as a leader at the electronic design automation firm Synopsys, inaugural member of the Industrial Advisory Committee created by the CHIPS Act to advise the federal government on microelectronics, the former chair of the American Electronics Association, a board member of the University of California Berkeley’s College of Engineering and co-chair of Purdue University’s Semiconductor Degrees Leadership Board. The NTSC is a key component of the CHIPS for America Research and Development Program and will be a public-private consortium to innovate, connect, solve technical programs and help build the semiconductor workforce. “The NSTC is the centerpiece of our efforts to build a strong semiconductor research and development ecosystem, which will enable the United States to be the world’s technological superpower and advance our economic security,” said Secretary of Commerce Gina M. Raimondo. For more information, please see the press release here. 

Administration Announces CHIPS Preliminary Terms with Microchip Technology to Strengthen Supply Chain Resilience for America’s Automotive, Defense, and Aerospace Industries

On January 4, 2024, the Administration announced that the U.S. Department of Commerce and Microchip Technology Inc. have reached a non-binding preliminary memorandum of terms (PMT) to provide approximately $162 million in federal incentives under the CHIPS and Science Act to support the onshoring of the company’s semiconductor supply chain. This investment would enable Microchip to significantly increase its U.S. production of microcontroller units and other specialty semiconductors built on mature-nodes critical to America’s automotive, commercial, industrial, defense, and aerospace industries — and create over 700 direct construction and manufacturing jobs. Today’s announcement is the second PMT announcement the Department of Commerce has made under the CHIPS and Science Act. The approximately $162 million in proposed CHIPS funding would be split across two projects: approximately $90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado, and approximately $72 million to expand a fabrication facility in Gresham, Oregon.

CHIPS for America Releases Draft Programmatic Environmental Assessment

December 26, 2023: CHIPS for America is announcing the availability of the Draft Programmatic Environmental Assessment (PEA) for the modernization and internal expansion of existing semiconductor fabrication facilities under the CHIPS Incentives Program. The PEA addresses the environmental effects of the modernization or internal expansion of existing current-generation and mature-node commercial facilities within their existing footprint throughout the U.S. The document can be found on our NEPA website National Environmental Policy Act (NEPA) | NIST. CHIPS is requesting comments on the Draft PEA through January 25, 2024. Please submit comments to CHIPSNEPA@chips.gov.

Commerce Department Announces Industrial Base Survey of American Semiconductor Supply Chain

On December 21, 2023, the U.S. Department of Commerce announced it will launch a new survey in January 2024 that will serve as a foundation for continued analysis of the capabilities and challenges of the broader U.S. semiconductor supply chain and national defense industrial base. The intent of the survey is to identify how U.S. companies are sourcing current-generation and mature-node semiconductors, also known as legacy chips. This analysis will inform U.S. policy to bolster the semiconductor supply chain, promote a level playing field for legacy chip production, and reduce national security risks posed by the People’s Republic of China (PRC). The Bureau of Industry and Security (BIS) within Commerce will launch the survey, which focuses on the use and sourcing of PRC-manufactured legacy chips in the supply chains of critical U.S. industries. The survey is a response to findings in a Congressionally-mandated report also released this week, which assesses the capabilities of the U.S. microelectronics industrial base to support U.S. national defense. That report was prepared pursuant to Section 9904 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021. The full study directed under Section 9904 is available on BIS’s website.

CHIPS Supply Chain FAQs for States and Local Governments

The U.S. Department of Commerce’s CHIPS for America has developed a set of frequently asked questions (FAQs) for States and Local Governments to provide additional information on how state and local governments can be involved and other information relevant to the Small-Scale Supplier Funding Opportunity.

The FAQs can be accessed on the chips.gov website. The State and Local Government-targeted questions include such questions as:

  • Apart from participating in consortia, how can state and local governments support entities applying for CHIPS Incentives under the Facilities for Semiconductor Materials & Manufacturing Equipment NOFO?
  • What would an effective Letter of Support include?

In addition to the questions specifically targeting states and local governments, other FAQ responses would also be of interest to states, such as: 

  • What are the characteristics of a strong construction workforce plan?
  • My project is not part of a cluster. Should I still apply?
  • What does it mean to advance a cluster?

Further, there are also a number of questions answered about Consortium Logistics that are relevant to states, as follows: 

  • How do I apply as part of a consortium?
  • What should state and local governments do if they want to form or support a consortium application?
  • What is the difference between a cluster and consortium?
  • The Department expects that strong consortia will include an anchor institution such as a semiconductor fab. What are other examples of anchor institutions?

CHIPS Announcements from the U.S. Department of Commerce, December 15, 2023:

  • Based on the December 11 announcement that the U.S. Department of Commerce and BAE Systems Electronic Systems have signed a non-binding preliminary memorandum of terms (see below), the Chips for America program has started a “Funding Updates” page on its website.

U.S. DOC and BAE Systems Inc. Announce First CHIPS Act Funding

On December 11, the U.S. Department of Commerce announced approximately $35 million in initial funding for BAE Systems to modernize the Microelectronics Center (MEC) in Nashua, New Hampshire. This is the first funding announcement as part of the CHIPS & Science Act, which was designed to strengthen American manufacturing, supply chains, and national security. Modernizing BAE Systems’ microelectronics center helps support this vision and the continued development and manufacturing of cutting-edge technology to serve customers’ missions. Local and state commitments contributed to the funding application. As a result, both the state of New Hampshire and the City of Nashua are offering workforce incentives through Nashua Community College (NCC). The state of New Hampshire will provide tuition assistance for NCC’s microelectronics bootcamp and the Nashua City Council is providing funds to establish a new clean room training course at NCC. The approximately $35 million in funding will be coupled with ongoing investment in modernization and R&D by BAE Systems. The funding will help purchase new, more efficient manufacturing tools to mitigate supply chain risk, increase production capacity, and reduce time-to-build product. The increased efficiency will enable a scale-up in production to meet increasing demand for DoD technology and provide critical microelectronics to non-defense industries including satellite communications, and test and measurement equipment markets.

CHIPS Program Accepting Concept Plans for Small-Scale Supply Chain Projects

As of December 1, 2023 the U.S. Department of Commerce will be accepting concept plans for its CHIPS & Science Act Notice of Funding Opportunity (NOFO) for smaller supply chain projects and businesses. This funding opportunity is open to projects with capital investment below $300 million involving the construction, expansion, or modernization of commercial facilities in the US for semiconductor materials and manufacturing equipment. Suppliers are strongly encouraged to apply for CHIPS incentives alongside other institutions from their regions to expand economic opportunity and competitiveness. The application process will be in 2 phases. First, applicants should submit a concept plan describing how their proposed project addresses core strategic objectives, including U.S. economic security and national security. Concept plans will be accepted until February 1, 2024. The Department of Commerce will then invite the most promising applicants demonstrating how they advance program priorities to submit a full application for CHIPS incentives. Full application submission dates will be communicated to applicants individually upon notifying them of their advancement.

USPTO Announces Semiconductor Technology Pilot Program in Support of CHIPS for America Program

November 30, 2023: To encourage research, development, and innovation in semiconductor manufacturing, the Commerce Department’s U.S. Patent & Trademark Office (USPTO) is announcinga new Semiconductor Technology Pilot Programdeveloped to support the CHIPS for America program. The pilot program is designed to accelerate improvements in the semiconductor industry by expediting examination of patent applications for certain semiconductor manufacturing innovations. Qualifying nonprovisional utility patent applications, directed to certain processes and apparatuses for manufacturing semiconductor devices, will be advanced out of turn for examination (accorded special status) until a first action. Applicants are not required to satisfy the current requirements of the accelerated examination program or the prioritized examination program to qualify. The USPTO will begin accepting petitions to participate in the Pilot Program on December 1, 2023. The program will be available until December 2, 2024, or until the USPTO accepts 1,000 grantable petitions, whichever is reached first.

Chips for America Releases Vision for $3 Billion National Advanced Packaging Manufacturing Program

On November 20, 2023, the Biden Administration announced its vision to boost U.S. capabilities for advanced packaging, a key technology for manufacturing state-of-the-art semiconductors. Approximately $3 billion in funding for the National Advanced Packaging Manufacturing Program (NAPMP) will be used to drive U.S. leadership in advanced packaging. “The Vision for the NAPMP” details the vision, mission, and objectives for the program created by the CHIPS & Science Act. Advanced packaging is a cutting-edge design and manufacturing method that places multiple chips with a variety of functions in a densely interconnected 2- or 3-dimensional “package.” Advanced packaging requires an interdisciplinary approach that brings together chip designers, materials scientists, process and mechanical engineers, measurement scientists, and more. Currently, the US is limited in both conventional and advanced packaging capacity. The program will be dedicated to activities that include an advanced packaging piloting facility for validating and transitioning new technologies to US manufacturers and workforce training programs.

The vision document is intended to provide more details of the NAPMP vision to the packaging community in advance of future funding opportunities. The U.S. Commerce Department anticipates announcing the first funding opportunity – on materials and substrates – in early 2024. Additional announcements about the investment areas, including a packaging piloting facility, will follow.

CHIPS for America Launches Small-Scale Supplier Project Concept Plan Application Portal

On November 17, 2023, CHIPS for America launched the application portal for submission of small-scale supplier project concept plans. These small supply chain concept plans are a required part of the application process for the Small-Scale Supplier Funding Opportunity. This funding opportunity seeks applications for smaller-scale projects involving the construction, expansion, or modernization of semiconductor materials and manufacturing equipment facilities for which the capital investment falls below $300 million. Potential applicants will have the opportunity to submit concept plans on the application portal starting on December 1, 2023, through February 1, 2024. On November 20, 2023, at 8PM ET, the Chips for America Program will hold the second in a series of webinars related to the Small-Scale Supplier Funding Opportunity. One of the topics to be covered is how to establish successful clusters and/or consortia.

CHIPS for America Releases Workforce Progress Report

On November 3, 2023, the U.S. Department of Commerce’s CHIPS for America program released a workforce development progress report outlining the program’s initiatives underway to build the world’s most competitive, skilled, and diverse semiconductor workforce. As part of the Biden Administration’s long-term vision for CHIPS for America, Secretary Raimondo has called on the United States to double the semiconductor workforce overall, triple the number of graduates in semiconductor-related fields, and train 100,000 new technicians. CHIPS for America is embracing a whole-of-society approach across government, education, labor unions, industry, and community organizations to achieve these ambitious goals. CHIPS will hold a webinar on November 15, 2023, with a briefing on this report.

Commerce Strengthens Restrictions on Advanced Computing Semiconductors and Semiconductor Manufacturing Equipment to Countries of Concern

On October 17, 2023, the U.S. Department of Commerce’s Bureau of Industry & Security (BIS) released a package of rules designed to update export controls on advanced computing semiconductors and semiconductor manufacturing equipment — as well as items that support supercomputing applications and end-uses — to arms-embargoed countries, including the People’s Republic of China (PRC), and to place additional related entities in the PRC on the Entity List. The updates modify and reinforce restrictions initially released last year (October 7, 2022) to address national security concerns posed by PRC military modernization.

Selection Committee Announces Leaders to Operate the CHIPS for America National Semiconductor Technology Center

On October 11, 2023, an independent selection committee announced the incoming board of trustees that is expected to oversee a nonprofit entity that will operate the National Semiconductor Technology Center (NSTC). The NSTC is the core research and development (R&D) component of the Department of Commerce’s CHIPS for America program. The NSTC will be a hub of collaboration for members of the entire semiconductor manufacturing and supplier ecosystem and will accelerate the pace of innovation and help lower the cost and time required to bring new technologies to market. The NSTC aims to fulfill the unmet needs of the semiconductor sector with member services such as access to emerging materials and process technologies, digital assets and design tools, a chiplet stockpile, and incubation support for startups. NIST has identified these needs through extensive outreach to the semiconductor ecosystem. The newly selected board members will now begin the process of creating a nonprofit entity that is expected to run the NSTC and hire executive leadership. The Department of Commerce expects to enter into a funding agreement with the newly formed nonprofit so that it can begin to operate the NSTC. To learn more about the NSTC structure, see A Vision and Strategy for the National Semiconductor Technology Center, published in April 2023.

Commerce Reaches Agreement with New Organization to Operate NSTC

On October 9, 2023, the U.S. Department of Commerce announced it has reached an initial agreement with a new nonprofit organization called SemiUS, the expected operator for the National Semiconductor Technology Center (NSTC). This follows the Department’s recent announcement that an independent committee selected the inaugural Board of Trustees of this new nonprofit organization. The agreement lays the foundation for initial operations and provides a path to the long-term execution of the ambitious vision that CHIPS for America laid out for the NSTC. For the press release that SemiUS issued, see this link.

Commerce Expands CHIPS Eligibility to Small-Scale Supply Chain Projects

On September 29, 2023, the U.S. Department of Commerce released a Notice of Funding Opportunity (NOFO) for smaller supply chain projects and business to access CHIPS and Science Act funds. This new funding opportunity is open to projects with capital investment below $300 million involving the construction, expansion, or modernization of commercial facilities in the United States for semiconductor materials and manufacturing equipment. Suppliers are strongly encouraged to apply for CHIPS incentives alongside other institutions from their regions to expand economic opportunity and competitiveness. The application process will be in two phases. First, applicants should submit a concept plan describing how their proposed project addresses core strategic objectives, including U.S. economic security and national security. Concept plans will be accepted between December 1, 2023, and February 1, 2024. The Department of Commerce will then invite the most promising applicants that demonstrate how they advance program priorities to submit a full application for CHIPS incentives. Full application submission dates will be communicated to applicants individually upon notifying them of their advancement.

For more information, please see the fact sheet here.

Administration Announces Final National Security Guardrails for CHIPS for America Incentives Program

On September 22, 2023, the U.S. Department of Commerce released the final rule implementing national security guardrails for the bipartisan CHIPS and Science Act. The final rule elaborates on two core provisions of the statute: prohibiting CHIPS funds recipients from expanding material semiconductor manufacturing capacity in foreign countries of concern for 10 years, and restricting recipients from certain joint research or technology licensing efforts with foreign entities of concern. For more information, please see the press release.  Helpful FAQs are featured at the end of the slide presentation from a related September 22 webinar.  On September 19, the Chips Program Office also released a National Security Guidebook for CHIPS Incentives applicants.

Resources available through the Chips for America program on workforce development and the inclusion of small and diverse businesses:

Creating Inclusive Opportunities for Businesses Guide, CHIPS Program Office, National Institute of Standards & Technology, August 21, 2023.

Under the CHIPS Act, and as stated in the Notice of Funding Opportunity (NOFO) dated June 23, 2023, applicants for CHIPS funding must document the broader impacts of the proposed project, including how the applicant intends to address the inclusion of small businesses, minority-owned businesses, veteran-owned businesses, and women-owned businesses through a supplier diversity plan.

Workforce Development Planning Guide: Guidance for CHIPS Incentives Applicants, CHIPS Program Office, National Institute of Standards & Technology, March 27, 2023.

The CHIPS Program Office offers this Workforce Development Guide as a resource for applicants responding to the February 2023 NOFO for the construction and expansion of commercial leading-edge, current, and mature node fabrication facilities under the CHIPS Incentives Program.

DOC/NIST requesting comments on how it measures outcomes of the CHIPS Incentives Program

The DOC Chips Program Office is considering collecting key data and information from recipients of CHIPS funding for the purposes of monitoring progress and performance on selected projects; ensuring compliance with the terms of an award; general programmatic financial management activities; and executing long-term program evaluation initiatives. CPO intends to collect key data and information in 3 primary categories: metrics, milestones, and reports. Metrics are quantitative measures that describe project progress or impact, and milestones are discrete action steps that are tied to target dates. Examples of data or information collected in the metric category may include but are not limited to number of jobs created, wafer starts per month, cumulative obligations, number of new customers contracts, or percentage of total childcare seats filled. Examples of milestone data or information collected may include but are not limited to construction milestones (e.g., permit issuance, utilities installation, fab groundbreaking, fab completion, etc.) or production go-live. Reports describe progress or details of a given content area in a narrative fashion. Please see more in the Federal Register notice with comments due September 19, 2023.

CHIPS for America Teaming Partner List

CHIPS for America is making available a teaming partner list that will enable entities to share information, foster collaboration, and advance shared goals. This list allows entities to share their contact information and capabilities so that potential applicants can reach out and consider utilizing their expertise to advance the CHIPS Act’s objectives. Since there are many entities interested in supporting the CHIPS Act that may not be eligible to apply on their own, the U.S. Department of Commerce is making it easier to facilitate potential partnerships and collaboration that can advance economic and national security interests. This list includes businesses that may not qualify as covered entities under the CHIPS funding opportunities, as well as organizations that provide support services relevant to the execution of the CHIPS incentives program. These entities can include educational and workforce training providers; childcare providers; organizations that engage or support minority-owned, women-owned, and veteran-owned businesses; community-based organizations; labor unions; and others. This list does not directly connect entities to potential applicants, but enables external entities to explore potential strategic partnerships. Fill out this form to be added to the CHIPS for America Teaming Partner List. Click here to access the list. The Excel sheet can be filtered by organization type, area of service, and other fields.

Commerce Department Expands CHIPS Funding for Supply Chain Projects

On June 23, 2023, the U.S. Department of Commerce announced an expanded scope for the CHIPS for America‘s Notice of Funding Opportunity (NOFO), which sought applications for projects for the construction, expansion, or modernization of commercial facilities for the fabrication of leading-edge, current-generation, and mature-node semiconductors. As of June 23, it also seeks applications for the construction, expansion, or modernization of commercial facilities for semiconductor materials and manufacturing equipment facilities for which the capital investment equals or exceeds $300 million. Two additional funding opportunities—for materials and manufacturing equipment facilities with capital investments below $300 million, and for research and development facilities—will be announced later this year. The Department also released a “Vision for Success” outlining strategic objectives for investments in the semiconductor supply chain. Statements of interest from all potential applicants for this and all future funding opportunities are currently being accepted on a rolling basis.

National Institute of Standards and Technology release Manufacturing USA Semiconductor Institutes RFI Summary

On June 1, 2023, the National Institute of Standards and Technology (NIST) released a summary of solicited public comments to inform the design of and requirements for up to three new Manufacturing USA institutes, which would strengthen the semiconductor and microelectronics innovation ecosystem in such areas as design, fabrication, advanced test, assembly, and packaging capabilities. This report summarizes 90 responses received across the following five areas: institute scope, institute structure and governance, strategies for driving co-investment and engagement, education and workforce development, and metrics and success. You can find the summary here.

NIST Releases Vision and Strategy for National Semiconductor Technology Center

On April 25, 2023, the U.S. Department of Commerce’s National Institute of Standards & Technology (NIST) released a paper outlining its vision and strategy for a National Semiconductor Technology Center (NSTC), a key component of the research and development program established by the CHIPS and Science Act. Congress appropriated $11 billion for the creation of a national center to support and extend U.S. leadership in semiconductor research, design, engineering, and advanced manufacturing and strengthen U.S. competitiveness.

Call for Nominations for National Semiconductor Technology Center Board of Trustees Selection Committee

On April 26, 2023, the U.S. Department of Commerce issued a Federal Register call for nominations to join a committee that will select a board of trustees for the new, independent, purpose-built non-profit that will operate the NSTC consortium. The Department seeks distinguished and experienced individuals to be responsible for the first step in creating this new organization to benefit the nation. Nominations will be accepted until May 10.

Department Received 200 Statements of Interest for Semiconductor Projects Across 35 States

Since releasing the first CHIPS for America funding opportunity in February 2023, the U.S. Department of Commerce’s CHIPS Program Office has received widespread interest and enthusiasm from the private sector. As of April 14, the Department had received more than 200 Statements of Interest (SOIs) from potential applicants seeking incentives to manufacture more semiconductor chips in America, protect our long-term national security, and solidify America’s technological and innovation leadership. Of the over 200 statements the Department received:

  • The projects described in the statements cover 35 states and span the entire semiconductor ecosystem.
  • More than half of the statements indicate interest in the first funding opportunity covering commercial fabrication facilities, including for leading-edge, current-generation, and mature-node chips, as well as back-end packaging facilities.
  • The remainder of the statements indicate interest in the forthcoming funding opportunities for semiconductor suppliers and R&D facilities.

Department Accepting Statements on Rolling Basis: The CHIPS Program Office is continuing to accept SOIs and will consider applications on a rolling basis and encourages all potential applicants seeking incentives for commercial fabrication facilities, upstream supply chain facilities, and R&D facilities to keep filing them. The statements will continue to help the Department understand project interest and plan funding. While there is widespread interest in CHIPS for America funding, the Department will evaluate applications on whether projects advance U.S. economic and national security. These incentives are intended to spur investment and crowd in private capital – not replace it.

New Frequently Asked Questions and Webinars

The CHIPS for America team will continue to update the “Frequently Asked Questions” section on CHIPS.gov to provide additional information and details about the program. Newly-answered questions, as of April 14, 2023, include:

  • How will upside sharing work?
  • How will the CHIPS Program Office protect confidential business information throughout the application process?
  • Will the CHIPS Program Office support applicants in the environmental review process?
  • What are the national security guardrails in the CHIPS and Science Act?

Visit the CHIPS.gov FAQs to read answers to the above Frequently Asked Questions. Additionally, CHIPS for America continues to host a series of public webinars on application materials and resources where applicants and stakeholders have the opportunity to ask questions. The latest webinars are on pre-application and financial modeling. Register for upcoming webinars and access recordings of previous webinars at the CHIPS.gov website.

Om March 27, 2023, the U.S. Department of Commerce released pre-application and application instructions, guidebooks, and other resources for the first CHIPS for America funding opportunity for leading-edge, current-generation, mature-node, and back-end semiconductor fabrication facilities. In addition, Commerce has posted on CHIPS.gov the pre-application materials for all applicants and full application materials for applicants seeking incentives for leading-edge facilities. The Department’s application process will help ensure it funds projects that advance U.S. economic and national security while safeguarding taxpayer resources. Commerce is asking applicants to submit detailed applications so that it has all the information it needs to evaluate applications and plan awards across the semiconductor ecosystem. Resource: Guides and Templates

The U.S. Department of Commerce released a Notice of Proposed Rulemaking (NPRM) for the guardrails included in the CHIPS Incentives Program to advance America’s technological and national security. The national security guardrails are intended to ensure technology and innovation funded by the CHIPS and Science Act is not used for malign purposes by adversarial countries against the United States or its allies and partners. The proposed rule offers additional details on national security measures applicable to the CHIPS Incentives Program included in the CHIPS and Science Act, limiting recipients of funding from investing in the expansion of semiconductor manufacturing in foreign countries of concern. The statute identifies those countries as the People’s Republic of China, Russia, Iran, and North Korea. Resources: Press Release; NPRM.

On February 28, 2023, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) launched the first CHIPS for America Notice of Funding Opportunity (NOFO) for manufacturing incentives for commercial fabrication facilities. As part of the bipartisan CHIPS and Science Act, Commerce is overseeing $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives. The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities to produce leading-edge, current-generation and mature-node semiconductors. This includes both front-end fabrication and back-end packaging.

Statements of Interest from all potential applicants will be accepted on a rolling basis from February 28, 2023. For potential applications for leading-edge facilities, pre-applications (which are optional) and full applications will be accepted on a rolling basis from March 31, 2023. For potential applications for current-generation, mature-mode, and back-end production facilities, pre-applications (which are recommended) will be accepted on a rolling basis from May 1, 2023, and full applications will be accepted on a rolling basis from June 26, 2023. The department will also be releasing a funding opportunity for semiconductor materials and equipment facilities in the late spring, and one for research and development facilities in the fall. Pre-applications will be accepted on a rolling basis beginning May 1, and full applications will be accepted on a rolling basis beginning June 26. For further information, please see the press release, Fact Sheet and NOFO.

CHIPS.gov – Webpage of the new Chips for America office at the U.S. Department of Commerce (Commerce), which is housed at DOC’s National Institute of Standards & Technology (NIST). NIST was selected as the bureau to house the new office and programs because of its deep technical expertise, industry focus, experience with public-private partnerships, and strong administrative functions.

The Commerce implementation strategy for the CHIPS & Science Act, includes a link to the full paper, Chips for America: A Strategy for the Chips for America Fund, September 6, 2022, and an Executive summary. The CHIPS for America Fund will support 3 initiatives:

  • Large scale investments in leading edge manufacturing: The CHIPS incentives program will target around $28 billion to establish domestic production of leading-edge logic and memory chips that require sophisticated manufacturing processes. Those amounts may be available for grants or cooperative agreements, or to subsidize loans or loan guarantees. The Department will seek proposals for the construction or expansion of manufacturing facilities to fabricate, package, assemble, and test critical components.
  • New manufacturing capacity for mature and current-generation chips, new and specialty technologies, and semiconductor suppliers: The CHIPS incentives program will increase domestic production of semiconductors across a range of nodes. This initiative is broad and flexible, encouraging industry participants to craft creative proposals. The Department expects dozens of awards with the total value expected to be approximately $10 billion. Those amounts may be available for grants or cooperative agreements, or to subsidize loans or loan guarantees.
  • Initiatives to strengthen U.S. leadership in R&D: The CHIPS R&D program will invest $11 billion in: a National Semiconductor Technology Center (see next bullet); a National Advanced Packaging Manufacturing Program; up to three new Manufacturing USA Institutes; and in NIST metrology R&D. Executing this vision will require collaboration with academia, industry, and allied countries.

The National Semiconductor Technology Center (NSTC) Public-Private Consortium: NSTC Update to the Community

  • Discusses the NSTC Mission, Structure, and Definition Process.
  • White Paper to be released in the first quarter of 2023 and the Department will issue guidance on when to expect Requests for Proposals.

Requests for Information to date:

  • 2022 Requests for Information:
    • –Request for information to inform the planning and design of potential programs: 1) Incentivize investment in semiconductor manufacturing facilities and ecosystems; 2) Provide for shared infrastructure to accelerate research and development (R&D) and prototyping; and 3) Support research on advanced packaging and metrology to ensure a robust domestic semiconductor industry. (Closed March 25, 2022).
    • -Request for Information on Incentives, Infrastructure and R&D needs to Support a Strong Domestic Semiconductor Industry: NIST sought public input on the design and implementation of incentive programs, including grants, loans and loan guarantees to encourage investment in domestic manufacturing capacity and reduce reliance on foreign supply chains. (Closed November 14, 2022).
    • –Manufacturing USA Semiconductor Institutes Request for Information: NIST sought public input on the development of up to 3 new Manufacturing USA institutes to enhance U.S. leadership in semiconductor manufacturing. Manufacturing USA is a network of institutes that brings together people, ideas and technology to solve advanced manufacturing challenges. The institutes envisioned in the CHIPS Act will be public-private collaborations focused on technology, supply chain, and education and workforce development. (Closed November 28, 2022).

The CHIPS for America Fund will include Congressionally-mandated guardrails to protect taxpayers: To help inform its work, the Administration established 6 guiding principles as the Commerce Department began the preliminary phases of CHIPS program design. These include:

  • meeting US economic and national security needs and not investing the technology in countries of concern;
  • ensuring long-term leadership in the sector;
  • strengthening and expanding regional clusters;
  • catalyzing private sector investment;
  • generating benefits for large set of stakeholders and communities, including socially and economically disadvantaged businesses (SEDI); and
  • protecting taxpayer dollars to ensure taxpayer funds are protected and spent wisely, and not used for dividends, stock buybacks, or windfall profits.

Also, Davis-Bacon requirements will apply to CHIPS-funded construction projects, which ensures workers earn local prevailing wages.

Commerce Industrial Advisory Committee (IAC) – Features the Committee Members, IAC Charter, FAQs, Federal Register notice, and meetings.

High-Level Timeline of Commerce’s CHIPS & Science Act activities

  • Summer 2022
    • -CHIPS & Science Act of 2022 Passed into Law and Signed by President Biden
    • -CHIPS for America is Launched with EO on the Implementation of CHIPS and Science Act of 2022
  • Fall 2022
    • -A Strategy for the CHIPS for America Fund Released
    • -CHIPS Webinars and Briefings
    • -CHIPS Program Office (CPO) and CHIPS R&D Office are founded, senior leadership announced
    • -IAC Members Announced
  • Winter 2023
    • -Funding Application Process Released; Rolling Applications Begin
  • Spring 2023, Summer 2023, Fall 2023, Winter 2024
    • -Review, Due Diligence & Funding
  • Additional Commerce resources, to-date, for stakeholders.
U.S. Economic Development Administration Resources

The CHIPS and Science Act authorizes $11 billion over 6 years to the U.S. Economic Development Administration within the Department of Commerce. The Act provides $10 billion to create 20 geographically distributed “regional technology and innovation hubs” in areas that are not leading technology centers. The Act also authorizes $1 billion as part of establishing the “Recompete Pilot Program” to support persistently distressed communities.  

EDA Announces $184M for 6 Recompete Finalists to Create Economic Opportunity in Distressed Communities

On August 5, 2024, the U.S. Economic Development Administration (EDA) announced $184 million in implementation funding to six Recompete Finalists. The Distressed Area Recompete Pilot Program (Recompete) awardees will use the funding to create renewed economic opportunity in distressed communities by creating and connecting people to good jobs. The Recompete implementation awardees are:  1) Alabama: Reinvest Birmingham Recompete Plan; 2) Kentucky: Eastern Kentucky Runway Recompete Plan; 3) Pennsylvania: City of Allentown Recompete Plan; 4) Puerto Rico: Oasis Expansion Recompete Plan; 5) Washington: North Olympic Peninsula Recompete Plan; and 6) Wyoming: Wind River Indigenous-based Economic Recompete Plan.

Phase 1 of the Recompete competition received 565 applications — the highest number of applications of any EDA national competition. The above awardees were chosen from 22 Recompete Finalists announced in December 2023.  EDA has now selected projects for funding in each of the six implementation communities, with award amounts to be finalized in the coming months. View the awardee Fact Sheet.

The Recompete program was authorized by the CHIPS & Science Act, and it targets areas where prime-age (25-54) employment is significantly lower than the national average, with the goal to close this gap through flexible locally driven investments. The CHIPS Act authorized $1 billion for the Recompete program.  To date, EDA has been appropriated $200 million for the program.  Click here to read more about Recompete.

EDA Awards $504M to 12 Designated Tech Hubs

On July 2, 2024, the U.S. Economic Development Administration (EDA) awarded $504 million in implementation grants to 12 Tech Hubs Designees. The Regional Technology and Innovation Hubs (Tech Hubs) program was established under the CHIPS & Science Act to support workforce and technology development for emerging industries. The 12 Tech Hubs selected to receive Phase 2 implementation funding were chosen from the initial 31 Designated Tech Hubs that were announced in October 2023. The Tech Hubs program was authorized at $10 billion over five years but appropriated less than $600 million over the last two Fiscal Years.

Administration Announces 22 Finalists for Distressed Area Recompete Pilot Program

On December 20, 2023, the U.S. Commerce Department’s Economic Development Administration (EDA) announced the 22 finalists of the Distressed Area Recompete Pilot Program (Recompete).  Recompete targets the hardest-hit and most economically distressed areas where prime-age (25-54 years) employment is significantly lower than the national average, with the goal to close this gap through flexible, locally-driven investments. Authorized by the CHIPS and Science Act, Recompete will invest $200 million in economic and workforce development projects that connect workers to good jobs in geographically diverse and persistently distressed communities across the country. The closing date for applications from the 22 finalists through Recompete Phase 2 is April 25, 2024.

EDA Announces Tech Hubs Awards

On October 23, 2023, the U.S. Economic Development Administration (EDA) announced the designation of the inaugural 31 Regional Technology and Innovation Hubs (Tech Hubs), as well as recipients of 29 Tech Hubs Strategy Development Grants. This is the first phase of the Tech Hubs program, which is an economic development initiative authorized by the CHIPS and Science Act designed to drive regional innovation and job creation by strengthening a region’s capacity to manufacture, commercialize, and deploy technology to advance American competitiveness. The selected Tech Hubs are located across 32 states and Puerto Rico and focus on industries ranging from semiconductor manufacturing to autonomous systems, renewable energy advancement, and more. EDA designated 4 Tech Hubs for semiconductor manufacturing, described in these EDA announcements: 1) Texoma Semiconductor Tech Hub, 2) Corvallis Microfluidics Tech Hub, 3) Advancing Gallium Nitride (GaN) Tech Hub, and 4) NY SMART I-Corridor Tech Hub.  Designation is an endorsement of the region’s plans to supercharge their respective technological industries to create jobs, strengthen U.S. competitiveness, and protect national security.  Designated Tech Hubs can now apply under the newly released Phase 2 Notice of Funding Opportunity (NOFO) for between $40 million and $70 million each for implementation funding, totaling nearly $500 million.  EDA also awarded 29 Strategy Development Grants (SDG) to help communities significantly increase local coordination and planning activities. Such development could make selected grantees more competitive for future Tech Hubs funding opportunities.

EDA Accepting Recompete Pilot Program Applications 

On June 29, 2023, the U.S. Economic Development Administration (EDA) released a Notice of Funding Opportunity (NOFO) for its $200 million Recompete Pilot Program. This program was funded under the CHIPS and Science Act of 2022 and aims to support communities where prime-age (25-54 years) unemployment significantly trails the national average through bottom-up, long-term strategies that tackle a community’s unique economic challenges. This first Recompete Pilot Program NOFO allows applicants in priority areas identified on this map to apply for Strategy Development Grants, approval of a Recompete Plan, or both. EDA anticipates awarding between $6 million to $12 million in total for Strategy Development Grants and approving at least 20 Recompete Plans at the conclusion of Phase 1. Applicants with approved Recompete Plans will be invited to submit a Phase 2 application in which they can apply for one of approximately 4-8 larger implementation awards between $20 million and $50 million on average.

The Phase 1 application deadline is October 5, and EDA expects to announce Phase 2 in winter 2023. To support applicants in determining geographic eligibility, EDA – in partnership with Argonne National Laboratory – released the Recompete Eligibility Mapping Tool. Please click here to access the tool, which includes a user-friendly map and instructional materials. Additional resources, including Fact Sheets and FAQs, can be found at eda.gov/Recompete.

EDA Launches First Tech Hubs Funding Opportunity

On May 12, 2023, the U.S. Department of Commerce’s Economic Development Administration (EDA) launched the Regional Technology and Innovation Hubs (Tech Hubs) competition. This program is intended to create tech hubs in regions across the country by bringing together industry, higher education institutions, state and local governments, economic development organizations, and labor and workforce partners to supercharge ecosystems of innovation for technologies that are essential to economic and national security. As authorized by the CHIPS and Science Act, this first Notice of Funding Opportunity (NOFO) will accept applications for planning grants and Tech Hubs Designations. Later this year, EDA will launch a second NOFO for applicants designated as a Tech Hub to apply for implementation funding. Applications are due by August 15, 2023. For more information, see the press release and the NOFO. 

Fact Sheet: What States Need to Know to Prepare for Upcoming Tech Hubs Funding Notices

On April 14, 2023, the U.S. Department of Commerce’s Economic Development Administration (EDA) shared an expanded Fact Sheet for the upcoming Tech Hubs program under the CHIPS & Science Act. Designed to help those interested in applying for the funding opportunity, the fact sheet outlines applicant eligibility requirements, timelines, and other program details. The Tech Hubs program aims to build and evolve innovation centers in key U.S. regions; accelerate regions’ evolution into a global leader in an industry of the future; and strengthen U.S. global competitiveness within critical technologies. Resource: Tech Hubs Fact Sheet.

The U.S. Economic Development Administration (EDA) issued a Tech Hubs Request for Information (RFI) to solicit public input about the program design, structure, and evaluation of the Tech Hubs program. The Tech Hubs program was enacted as part of the CHIPS and Science Act of 2022, and Congress appropriated $500 million for FY 2023. Through this RFI, EDA seeks input in several areas, including but not limited to information on: structuring a Tech Hubs program that will accelerate regions evolution into a global leader in an industry of the future that strengthens the region and U.S. economic and national security; identifying metrics for assessment of successful Tech Hubs; designing a competitive, inclusive and accessible selection process for Tech Hub designations that would both support critical technology and innovation sectors, as well as geographic diversity; and identifying how federal designations and federal grants can be structured to maximize the desired impacts of the Tech Hubs program. While this RFI specifically seeks input on these and other topics, EDA welcomes all responses that stakeholders believe will support the development of a strong Tech Hubs program. Responses are due by March 16. For more information, see the press release and the RFI. 

The U.S. EDA has created a Regional Technology and Innovation Hubs (Tech Hubs) webpage. This provides a link to resources, funding opportunities, requests for information and other updates.

On February 23, 2023, the EDA released a Request for Information on the Distressed Area Recompete Pilot Program. The Recompete program will invest in distressed communities across the country to create and connect workers to jobs. The Recompete program specifically targets areas with low labor participation, particularly by those considered in the prime ages for sustained employment (ages 25-54) – otherwise known as an area with a high prime-age employment gap – and strives to make targeted interventions to spur economic activity in such areas. Congress appropriated $200 million for the Recompete Pilot Program for FY 2023. The Request for Information can be found here.

On December 14, 2022, the Hon. Alejandra Castillo, U.S. Assistant Secretary of Commerce for Economic Development, U.S. Economic Development Administration presented to the United States House of Representatives Committee on Science, Space and Technology on the EDA’s regional innovation programs and place-based economic development strategies. Please see the transcript here.

National Science Foundation Resources

The CHIPS and Science Act authorizes $81 billion for the National Science Foundation over five years, including for PreK-12, undergraduate and graduate STEM education, workforce measures and scientific research. The NSF has also been appropriated $200 million for CHIPS for American Workforce & Education Fund to kick start development of the domestic semiconductor workforce, which faces near-term labor shortages.

NSF Advances 71 Teams in the Second Regional Innovation Engines Competition

The U.S. National Science Foundation Regional Innovation Engines (NSF Engines) program announced that 71 teams spanning nearly every state and territory in the nation are advancing to the next stage of this second-ever competition. The CHIPS and Science Act created the Regional Innovation Engines program which: supports the establishment of translation accelerators and test beds; invests in workforce development and training; and invests in programs to provide entrepreneurial training. The 71 selected teams are now eligible to submit full proposals for consideration. NSF has created an interactive map that shows where the 71 teams are located and what technology areas they fall under.

NSF Announces Network Coordination Hub Funding Opportunity

On September 27, the U.S. National Science Foundation and Department of Commerce announced a $30 million funding opportunity through the CHIPS and Science Act. This opportunity is to establish the Network Coordination Hub that will manage the National Network for Microelectronics Education (NNME) and lead its national strategy to train skilled workers for jobs needed in the U.S. semiconductor and microelectronics industry. Proposals must include a lead organization, which must be an institution of higher education or non-profit organization or a consortium of such institutions and organizations. Applications are due by October 28 and interested parties you can find the solicitation here.  

NSF awards $42.4M in New Grants to Support the Future of Semiconductors

On September 16, 2024, the U.S. National Science Foundation, in partnership with Ericsson, Intel Corporation, Micron Technology and Samsung, announced $42.4 million in grants for its Future of Semiconductors (NSF FuSe2) competition. The NSF FuSe2 awards will support the broader goals of the “CHIPS and Science Act of 2022” to ensure long-term leadership in the microelectronics sector and growth in our regional economies across the country. The investment will fuel groundbreaking research and education across various semiconductor technologies, addressing key challenges in this critical field, including emerging computing tasks and applications, energy efficiency, performance, manufacturing and supply chains.

New Funding Opportunity Seeks to Invest in Additional NSF Regional Innovation Engines

The U.S. National Science Foundation has announced a funding opportunity to invest in a new set of NSF Regional Innovation Engines (NSF Engines) across the U.S.  In January, NSF announced the 10 inaugural NSF Engines, and the latest opportunity looks to build upon that investment, pending congressional appropriations. This latest funding opportunity advances the bipartisan priorities outlined in the CHIPS and Science Act of 2022, which authorized the NSF Engines program. New to this round of funding, tribal nations and state and local government agencies are eligible to submit a proposal as the lead organization.In this round of funding, the NSF Engines program is only accepting proposals for full NSF Engines, competing for up to $160 million over 10 years. Proposers will be asked to submit a letter of intent in place of a concept outline and a short preliminary proposal. NSF does not require that proposers have an NSF Engines Development Award nor previous support from NSF or other federal agencies. Letters of intent are due by June 18, 2024. For more information about the program, visit the NSF Engines website or email your questions. Register for the 2024 NSF Engines Funding Opportunity Webinar on April 25, 2024, at 2 pm ET.

NSF/TIP Celebrates its Second Anniversary, Showcasing the Impact of this Last Year

Building upon decades of work in advancing research and education, the U.S. National Science Foundation (NSF) established the Directorate for Technology, Innovation & Partnerships (TIP), the first new NSF directorate in more than 30 years, on March 16, 2022. Not long after, its establishment was then codified with the enactment of the CHIPS and Science Act of 2022, authorizing the establishment of TIP and charging it with ensuring the U.S. is in the vanguard of competitiveness for decades to come. Over the past 2 years, the growing TIP team – together with colleagues from across the rest of NSF – has worked to foster innovation ecosystems, accelerate technology translation and development, and grow the science, technology, engineering and mathematics (STEM) workforce. As TIP marked a second anniversary, the organization’s leaders reflected on what had been accomplished and looked ahead toward building upon the work they had begun – advancing use-inspired research and innovation and creating new pathways for everyone to engage in the STEM workforce.

NSF Awards $150M for 10 Regional Innovation Engines

On January 29, 2024, the National Science Foundation (NSF) announced $150 million in awards under the CHIPS and Science Act to establish 10 NSF Regional Innovation Engines across 18 states. These innovation hubs are intended to support transdisciplinary, collaborative, use-inspired, and translational research and technology development in key scientific focus areas. Each awardee team will receive an initial $15 million over the next two years with the potential to receive up to $160 million each over the next decade. Beyond the 10 NSF Engines awards, a subset of the semifinalists and finalists were invited to pursue NSF Engines development awards, with each receiving up to $1 million to further develop their partnerships and model for a future NSF Engines proposal. They will join 44 existing awardees announced in early May 2023. NSF anticipates future calls for proposals, pending the availability of funds.

NSF and Philanthropic Partners Announce $16 Million to Prioritize Ethical, Social Considerations in Emerging Technologies

On January 9, 2024, the U.S. National Science Foundation launched a new $16 million program in collaboration with five philanthropic partners that seeks to ensure ethical, legal, community and societal considerations are embedded in the lifecycle of technology’s creation and use. The Responsible Design, Development and Deployment of Technologies (ReDDDoT) program aims to help create technologies that promote the public’s wellbeing and mitigate potential harms. The ReDDDoT program invites proposals from multidisciplinary, multi-sector teams that examine and demonstrate the principles, methodologies and impacts associated with responsible design, development and deployment of technologies, especially those specified in the “CHIPS and Science Act of 2022.” In addition to NSF, the program is funded and supported by the Ford Foundation, the Patrick J. McGovern Foundation, Pivotal Ventures, Siegel Family Endowment and the Eric and Wendy Schmidt Fund for Strategic Innovation. The initial areas of focus for 2024 include AI, biotechnology, or disaster prevention/mitigation. Future iterations of the program may consider other technology focus areas enumerated in the CHIPS and Science Act. For more information, visit the program website.

NSF Launches New Initiative on the Future of Semiconductors

On December 15, 2023, the National Science Foundation released a solicitation for proposals for the Future of Semiconductors Initiative (FuSe2) which will fund STEM education and workforce development to spur semiconductor innovation through partnerships between industry and academic institutions. The research funding will go to the academic institutions; proposals must include education and workforce development plans integrated with the proposed research activities focused on co-design approaches. Collaborative teams of all sizes are encouraged. Twenty awards are anticipated, each up to $2 million. These proposals are due March 14, 2024.

NSF and Partners Invest $45 Million in the Future of Semiconductors  

On September 14, 2023, the U.S. National Science Foundation announced 24 research and education projects with a total investment of $45.6 million — including funding from the CHIPS and Science Act of 2022 — to enable rapid progress in new semiconductor technologies and manufacturing as well as workforce development. The projects are supported by the NSF Future of Semiconductors (FuSe) program through a public-private partnership spanning NSF and four companies: Ericsson, IBM, Intel and Samsung.  For more information, see the press release.

NSF and Partners Invest $45 Million in the Future of Semiconductors  

On September 14, 2023, the U.S. National Science Foundation announced 24 research and education projects with a total investment of $45.6 million — including funding from the CHIPS and Science Act of 2022 — to enable rapid progress in new semiconductor technologies and manufacturing as well as workforce development. The projects are supported by the NSF Future of Semiconductors (FuSe) program through a public-private partnership spanning NSF and four companies: Ericsson, IBM, Intel and Samsung.  For more information, see the press release.

NSF Regional Innovation Engines program selects 16 teams for the final round of competition: NSF encourages finalists to pursue additional teaming during final phase of the competition

On August 2, 2023, the National Science Foundation (NSF) announced 16 finalists for the first-ever NSF Regional Innovation Engines (NSF Engines) competition, spanning a range of key technology areas and societal and economic challenges highlighted in the “CHIPS and Science Act.” The NSF Engines will link up with local and regional partners to expand innovation across the nation and create collaborative and inclusive technology-driven innovation ecosystems. As with the announcement of the NSF Engines semifinalists earlier this summer, NSF is releasing the list of finalists to transparently encourage participation and teaming among diverse organizations to foster innovation and regional growth. View a map of the NSF Engines finalists on the NSF Engines website.

The NSF Engines program is anticipated to be transformational for the nation, ensuring the U.S. remains globally competitive in key technology areas for decades to come. NSF anticipates announcing the NSF Engines awards this winter, with each awardee initially receiving about $15 million for the first 2 years. Each NSF Engine could receive up to $160 million over 10 years; actual amounts will be subject to a given NSF Engine’s status and overall progress, as assessed annually.

Over an up to 10-year period, an NSF Engine is expected to progress through three phases: nascent, emergent and growth. When successful, an NSF Engine will lead to its region becoming a nationally renowned, self-sustaining, technology- and innovation-driven hub of economic activity for the topic in which it specializes. The finalists will likely position themselves within the nascent and emergent phases.

NSF initially narrowed the NSF Engines proposals to 34 semifinalists in June 2023. NSF assessed each of the 34 semifinalist teams on their proposed leadership’s ability to rapidly mobilize regional assets and partners in an inclusive manner; their competitive advantages; and the budgets and resources for their planned use-inspired and translational research and development as well as workforce development efforts. The finalist teams will be interviewed in person later to assess risks, resources and a given team’s ability to adapt to changing circumstances. The role of the NSF Engines’ partners will be a key component of the selection process at this stage. For states, the NSF is encouraging state engagement with finalists throughout the remainder of the process. Through this announcement, NSF offers a clarion call to regional constituents within each finalist’s region of service to support the teams by increasing or reinforcing their commitments to support the proposed activities. The announcement of NSF Engines finalists expands upon the 44 NSF Engines Development awards announced in early May 2023 and the semifinalists announced in June. More information, including the full list of finalists, can be found on the NSF Engines program website.

U.S. Department of Energy Resources

The CHIPS and Science Act authorizes $67 billion in the Department of Energy, including a $50 billion authorization for DOE’s Office of Science to enable cutting-edge research and development in clean energy and advanced computing and manufacturing.

DOE Appoints Board for New Foundation to Commercialize Energy Technologies

On May 9, the U.S. Department of Energy (DOE) appointed the inaugural board of directors for the Foundation for Energy Security & Innovation (FESI), authorized through the 2022 CHIPS & Science Act. This new independent nonprofit entity will help accelerate the commercialization of new and existing energy technologies by raising and investing private and philanthropic funds. Board members will actively fundraise for FESI activities and initiatives – including fostering public-private partnerships, investing in companies commercializing critical energy technologies, supporting underrepresented groups and regions responding to DOE funding opportunities, and tackling a wide variety of systemic and distributed federal, state, and local deployment challenges.

DOE Launches New Office to Coordinate Critical and Emerging Technology Including Semiconductors

On December 12, 2023, the U.S. Department of Energy (DOE) announced the launch of the Office of Critical & Emerging Technology (CET) to ensure US investments in areas such as artificial intelligence (AI), biotechnology, quantum computing, and semiconductors leverage the Department’s wide range of assets and expertise to accelerate progress in these critical sectors. Major advances in CET hold extraordinary potential for the economy and national security but also pose significant risks, and DOE’s new office will focus the Department’s efforts to ensuring that its capabilities are helping to solve critical science, energy, and security challenges.

U.S. Department of Defense Resources

The CHIPS and Science Act appropriates $2 billion to the Department of Defense to fund microelectronics research, fabrication, and workforce development.

The Department may provide funding in various forms, including grants, cooperative agreements, other transactions, loans, and loan guarantees.

Announcement in Support of the Manufacture of Microelectronics and Advanced Semiconductors for National Security

On September 16, 2024, the Administration announced it had awarded Intel Corporation up to $3 billion in direct funding under the CHIPS and Science Act for a capability known as the ‘Secure Enclave.’ The funding will support the manufacturing of microelectronics and ensure access to a domestic supply chain of advanced semiconductors for national security. The award will be executed by the Department of Defense (DoD) per an agreement between the Department of Commerce and the DoD. The award builds on Intel’s work with the DoD and will further strengthen our national security.

DOD Releases Microelectronics Commons FY24 Call for Projects to Catalyze Innovation

As part of the implementation of the CHIPS & Science Act, on December 18, the Department of Defense (DOD) announced the Microelectronics Commons FY24 Call for Projects (CFP), which provides up to $280 million to projects that support the domestic prototyping and fabrication of microelectronics. DOD anticipates project awards to occur in the third quarter of FY24. Microelectronics designs that are proven within US universities and businesses of all sizes frequently do not enter large-scale production because the transition from lab to fabrication is difficult; the Commons is focused on easing this transition. US businesses and universities will be able to demo their microelectronics innovations at scale for both DOD and commercial uses. This aims to ensure the US defense industrial base will have access to a pipeline of microelectronics produced in US foundries. The 8 Commons regional innovation hubs announced by the Deputy Secretary of Defense in September 2023 are tasked with evolving lab prototypes into fabrication prototypes and strengthening the semiconductor workforce. There are currently more than 380 organizations within those Hubs – more than 100 of which are academic institutions – spanning 35 states, DC, and Puerto Rico. DOD is working closely with the U.S. Department of Commerce on the design and implementation of the nation’s microelectronics strategy. See the website for more information: MicroelectronicsCommons.org.

Deputy Secretary of Defense Announces $238M CHIPS and Science Act Award

On September 20, 2023, the U.S. Department of Defense made its first major awards under the Microelectronics Program funded through the CHIPS and Science Act. The Department designating eight regional semiconductor technology hubs in an effort to boost US production of the advanced electronics components used in military equipment. The awards, totaling $238 million across applicants that represent more than 360 organizations, will go to hubs in Massachusetts, Indiana, North Carolina, Arizona, Ohio and New York, plus two in California. The CHIPS Act allotted the Defense Department $2 billion across five years for its Microelectronics Commons Program, which aims to spur private investment in specific chip technology needed by the military. Learn more here and in the press release.

Department of Commerce and Department of Defense Sign Memorandum of Agreement to Strengthen U.S. Defense Industrial Base

On July 26, 2023, the U.S. Departments of Commerce (DoC) and Defense (DoD) signed a Memorandum of Agreement (MOA) to expand collaboration to strengthen the U.S. semiconductor defense industrial base.  The agreement will increase information sharing between the Departments to facilitate close coordination on the CHIPS for America’s incentives program, ensuring that their respective investments position the U.S. to produce semiconductor chips essential to national security and defense programs. The MOA will advance this agenda to strengthen manufacturing and supply chains here at home, solidify America’s global leadership, and protect long-term national security. “This agreement is an important step forward in increasing the capacity and resiliency of our domestic semiconductor industrial base,” said Assistant Secretary of Defense for Industrial Base Policy, Dr. Laura Taylor-Kale, who signed the MOA on behalf of the Department of Defense. “It is essential for DoD and DoC to consult one another to ensure we are making complementary investments that support a robust semiconductor industrial base.  Both Departments are working together to expand domestic semiconductor production capacity in a coordinated fashion.”  Specific areas of consultation identified in the MOA include sharing information on the semiconductor needs of the Defense Industrial Base, the investment priorities of DoD and each military service, the existing and planned investments to sustain mature and legacy chip capabilities for current defense programs, and funding to support emerging technologies that are critical to future U.S. national security programs.

U.S. Department of Treasury Resources

Section 48D of the CHIPS and Science Act establishes a new advanced manufacturing investment tax credit (ITC). This creates a 25% ITC for investments in semiconductor manufacturing facilities and equipment.

Treasury Finalizes Rules for the Advanced Manufacturing Investment Credit

On October 22, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) released final rules for the Advanced Manufacturing Investment Tax Credit (CHIPS ITC) created in the CHIPS and Science Act. The CHIPS ITC is generally equal to 25% of the basis of any qualified property that is part of an eligible taxpayer’s advanced manufacturing facility for qualified projects placed in service after December 31, 2022, covering construction occurring after August 9, 2022 but before 2027. The final rules are largely in line with proposed regulations, with additional clarity on the definition of what constitutes an “advanced manufacturing facility.” Specifically, the CHIPS ITC includes semiconductor wafer production facilities, and the production of wafers used for photovoltaic solar energy generation. For more information, please see the Final Rules.

Treasury, IRS Issue Guidance for the Elective Payment of Advanced Manufacturing Investment Credit

On March 5, 2024, the Internal Revenue Service (IRS) issued final regulations that provide guidance for the entities choosing the elective payment for the advanced manufacturing investment credit established by the CHIPS Act of 2022. The final regulations include special rules for partnerships and S corporations making the election. In addition, the final regulations provide rules related to the mandatory pre-filing registration requirement that were previously issued as temporary regulations. The final regulations provide guidance related to the mandatory IRS pre-filing registration process, which is available through the pre-filing registration tool. The pre-filing registration process must be completed, and a registration number received, prior to making an elective payment election.

IRS Opens IRA and CHIPS Direct Pay Pre-filing Tool

On December 22, 2023, the Internal Revenue Service (IRS) opened a new pre-filing registration tool for states and territories, along with other eligible entities, to file for direct/elective pay under the Inflation Reduction Act (IRA) and the CHIPS & Science Act. This tool is the entry point for Governors’ offices to take advantage of the tax credits under these 2 bills. States and territories need to complete the pre-filing registration process to receive a registration number, which then must be included in the annual return. Pre-filing registration requests can be submitted no earlier than the beginning of the tax year in which the taxpayer will earn the credit it wishes to file, and the current recommendation is to submit the pre-filing registration at least 120 days prior to when the entity plans to file its relevant tax return. Those interested can register for a webinar on January 9 at 2 pm EST, or see the User Guide.

On June 14, 2023 the U.S. Treasury Department and Internal Revenue Service (IRS) released a Notice of Proposed Rulemaking to propose clear rules of the road for taxpayers seeking to utilize the elective payment option to more quickly gain the benefits of section 48D Advanced Manufacturing Investment Tax Credit (ITC) under the CHIPS & Science Act.  The proposed rules would provide procedural certainty for taxpayers seeking to elect the full amount of a CHIPS ITC by clarifying the timing of when elective payment elections are made, explaining how to determine the amount of the credit and elective payment, and laying out clear procedural rules for electing taxpayers – including those that are partnerships and S corporations.  The proposed regulations would also provide guidance on excessive payments and basis reduction and recapture.  Along with the proposed regulations, temporary regulations lay out clear steps on how electing taxpayers will pre-register with the IRS before making an election when they file their annual income tax returns. Comments are due by August 14, 2023 and a public hearing is scheduled for August 24, 2023. The Notice of Proposed Rulemaking can be found here and the temporary regulations here.  

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) released a notice of proposed rulemaking (NPRM) for the Advanced Manufacturing Investment Credit (CHIPS ITC) established by the CHIPS Act of 2022. The proposed regulations support the CHIPS ITC’s mission of strengthening the resilience of the semiconductor supply chain and creating jobs by incentivizing manufacturing investments in semiconductor facilities across the United States. Treasury and the IRS are outlining detailed proposed rules that ensure the investment tax credit is appropriately tailored to the economic and technological realities of the semiconductor industry in order to cement U.S. leadership in critical semiconductor manufacturing. The proposed regulations also provide information on how to claim the credit.  Resources: Press Release; NPRM.

U.S. Department of State Resources

New Partnership with India to Explore Semiconductor Supply Chain Opportunities

September 9, 2024 – The U.S. Department of State will partner with the India Semiconductor Mission in India’s Ministry of Electronics & IT to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security & Innovation (ITSI) Fund created by the CHIPS Act of 2022. This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain.

The initial phase includes a comprehensive assessment of India’s existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs. The State Department anticipates that key Indian stakeholders, such as state governments, educational institutions, research centers, and private companies, will participate in this analysis steered by the India Semiconductor Mission. The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector.

The United States and India are key partners in ensuring the global semiconductor supply chain keeps pace with the global digital transformation currently underway. This collaboration between the US and India underscores the potential to expand India’s semiconductor industry to the benefit of both nations. More information about the State Department’s ITSI Fund can be found here.

Launch of Americas Partnership for Economic Prosperity’s Semiconductor Symposium: Expanding the Supplier Ecosystem

On July 17,2024, Secretary Blinken announced at the America’s Partnership for Economic Prosperity Ministerial the U.S. Department of State and Mexico’s Secretariat of Economy would host the “Americas Partnership Semiconductor Symposium: Expanding the Supplier Ecosystem” on September 5-6, 2024, in Mexico City. The Symposium will focus on expanding and diversifying the semiconductor assembly, testing, and packaging (ATP) ecosystem in Americas Partnership countries. The Symposium will bring together industry, particularly small and medium-sized suppliers, governments, academia, and labor to identify key challenges, explore emerging opportunities, and develop strategies for sustainable growth and collaboration in the industry. These efforts will work towards achieving one of the Americas Partnership’s priority goals of bolstering the semiconductor industry and capacity in the Western Hemisphere.

This event builds upon the earlier “Americas Partnership Semiconductor Workforce Symposium: Building Technical Capacity for a Skilled 21st Century Workforce,” hosted in Costa Rica in January 2024. The U.S. Department of State is committed to working with Americas Partnership countries to explore opportunities to grow and diversify the global semiconductor ecosystem, including through the International Technology Security & Innovation (ITSI) Fund, created by the CHIPS Act of 2022. These efforts will support collaboration with countries on a suite of new diplomatic and capacity-building programs to create a more resilient, secure, and sustainable global semiconductor supply chain. For more information about the CHIPS Act and ITSI Fund, see: U.S. Department of State International Technology Security & Innovation Fund.

New Partnership with Mexico to Explore Semiconductor Supply Chain Opportunities

As announced on March 28, 2024, the U.S. Department of State will partner with the Government of Mexico to explore opportunities to grow and diversify the global semiconductor ecosystem under the International Technology Security & Innovation (ITSI) Fund, created by the CHIPS Act of 2022. This partnership will help create a more resilient, secure, and sustainable global semiconductor value chain. The initial phase includes a comprehensive assessment of Mexico’s existing semiconductor ecosystem and regulatory framework, as well as workforce and infrastructure needs. Key stakeholders in the Mexican ecosystem, such as state governments, educational institutions, research centers and companies will participate in this analysis in conjunction with Mexico’s Secretariat of Economy. The insights gained from the assessment will serve as the basis for potential future joint initiatives to strengthen and grow this critical sector.

This collaboration between the US and Mexico underscores the significant potential to expand Mexico’s semiconductor industry to the benefit of both nations and will build on existing cooperation under the bilateral High-Level Economic Dialogue and trilateral North American Leaders Summit process. This partnership will also support the work already underway to bolster regional competitiveness in semiconductors — including workforce development — in the Americas Partnership for Economic Prosperity.

U.S. Department of Education Resources

U.S. Education Department Launches CTE CHIPS Challenge

The U.S. Department of Education (ED) is launching the Career Technical Education (CTE) CHIPS Challenge, a new grant program that will award funding to CTE programs aligned with the CHIPS and Science Act. The effort is scheduled to last through 2028. Applicants should submit action plans for expanding student recruitment, training, and career placement in semiconductor fabrication and manufacturing pathways programs. ED will host a series of three information sessions for prospective applicants interested in applying for funding under this competition.

Calendar

NGA Resources

NGA Communications, Publications, and Commentary

Meet the Team

  • Tom Curtin, Program Director, Infrastructure
  • Jack Porter, Program Director, Workforce Development and Economic Policy
  • Sally Rood, Senior Policy Analyst
  • Glenn Grimshaw, Senior Policy Analyst
  • Richard Lukas, Legislative Director, Office of Government Relations
  • Alexis Howard, Legislative Associate, Office of Government Relations

NGA Briefings

Slides from NGA CHIPS Briefing on Commercial Fabrication Facilities Funding, March 15, 2023

On March 15, NGA hosted a briefing for Governors’ offices with the U.S. Department of Commerce’s CHIP Program Office. On February 28, the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) launched the first CHIPS for America notice of funding opportunity for manufacturing incentives intended to restore U.S. leadership in semiconductor manufacturing.

During the briefing, the CHIPS team explained how Commerce is overseeing $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives, as part of the bipartisan CHIPS and Science Act. The CHIPS team provided an overview of the funding opportunity, which seeks applications for projects to construct, expand, or modernize commercial facilities to produce leading-edge, current-generation and mature-node semiconductors. Governors’ offices shared their questions with the Commerce officials who then described how states and territories can best support applications.

Through the Q&A session, it was clarified that a letter demonstrating an offer of a state/local government incentive does not need to be submitted by the applicant with the Statement of Interest, is optional for a pre-application but is a requirement for submission of the full application. It was also clarified that both mature packaging and advanced packaging facilities are eligible for funding under the current NOFO (back-end technologies component), and that the $75 billion loan and loan guarantee program should available for this and forthcoming notices of funding opportunity under the CHIPS for America program.

Slides from Chips for America office briefing to NGA, October 11, 2022.

Key briefing takeaways for states and territories include:

  • Applicants must demonstrate they have secured incentives from state or local government.
  • State and local incentives could include investments in industrial infrastructure that support the proposed project or broader development of the supplier ecosystem, workforce investment or long-term tax credits.
  • States and localities could demonstrate commitment to the investment through providing expedited permitting processes; offering a point of contact to assist with site selection, supplier discovery and compliance with local laws; establishing a system integrator that works with ecosystem companies; provides planning and support for ancillary investments (housing, community development); and develops partnerships with other states and localities where relevant.

Slides from Semiconductor Industry Association (SIA) briefing to NGA, “Chips Act Overview,” September 1, 2022

Presented by David Isaacs, SIA VP for Government Affairs, who provided an overview of the law and discussed how the investments will support competitiveness and economic priorities for states and territories.

Additional Resources

National Semiconductor Economic Roadmap (NSER) – Along with the NSER participants, the roadmap was developed in partnership with Boston Consulting Group and the Arizona Commerce Authority.

Federal Funds Information for States (FFIS): On March 15, 2024, FFIS released an updated Chips & Science Act spreadsheet, which tracks provisions, Notices of Funding Opportunities (NOFOs), and awards across all sectors. See the spreadsheet here (password protected for member states and territories)

Federal Funds information for States (FFIS): Analysis of FY2023 Enacted Budget for Department of Commerce here (password protected for member states and territories)

U.S. Semiconductor Ecosystem Map: The U.S. Semiconductor Ecosystem Map demonstrates the breadth of the industry, including locations conducting research and development (R&D), intellectual property and chip design software providers, chip design, semiconductor fabrication, and manufacturing by suppliers of semiconductor manufacturing equipment and materials.

Invest.gov Private Investments/Public Infrastructure Map: An interactive map that illustrates the impact of record-breaking levels of public and private investment across states and territories.

Semiconductor Industry Association July 2023 report, Chipping Away: Assessing and Addressing the Labor Market Gap Facing the U.S. Semiconductor Industry

Semiconductor Industry Association May 2024 report, Emerging Resilience in the Semiconductor Supply Chain

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