Funding Opportunity Announced: CHIPS for America

 As Part of Implementing the Bipartisan CHIPS and Science Act, Department of Commerce Seeks Applications to Revitalize Domestic Semiconductor Industry and Bring Supply Chains Back to the U.S. 

The Biden-Harris Administration through the U.S. Department of Commerce’s National Institute of Standards and Technology has launched the first CHIPS for America funding opportunity for manufacturing incentives to restore U.S. leadership in semiconductor manufacturing, support good-paying jobs across the semiconductor supply chain, and advance U.S. economic and national security.  

As part of the bipartisan CHIPS and Science Act, the Department of 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 for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging. 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. 

The first funding opportunity details the application process and outlines how the Department will evaluate applications, including a primary focus on how projects advance U.S. economic and national security. Applications will also be evaluated for commercial viability, financial strength, technical feasibility and readiness, workforce development, and efforts to spur inclusive economic growth. Starting today, the Department strongly encourages all potential applicants, including those for future funding opportunities, to submit statements of interest so it may gauge interest across the semiconductor ecosystem and begin preparing for application review. Read more about the application and evaluation process here.  

Awards will take the form of direct funding, federal loans, and/or federal guarantees of third-party loans. Awards are designed to complement—not replace—private investment and other sources of funding, and applicants are strongly encouraged to bring capital to the table. CHIPS for America awards will be made as soon as applications can be rigorously evaluated and negotiated. 

Applicants are also encouraged to claim the Advanced Manufacturing Investment Credit (Investment Tax Credit) administered by the U.S. Department of the Treasury and the Internal Revenue Service. The Investment Tax Credit is a federal income tax credit for qualifying investments in facilities manufacturing semiconductors or semiconductor manufacturing equipment and a critical component of the suite of incentives provided by the CHIPS and Science Act. The Department of Commerce and the Department of the Treasury are coordinating closely on CHIPS funding and the Investment Tax Credit to ensure these incentives work together to further the Administration’s economic and national security goals. The Department of the Treasury expects to publish guidance on the Investment Tax Credit in March, in addition with forthcoming Department of Commerce guidance on national security guardrails.  

Visit https://www.chips.gov to learn more.