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
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.

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.  

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/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 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.

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, 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 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.

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

Governors Leading

Infrastructure Insights

McKinsey & Company

Exploring new regions: The greenfield opportunity in semiconductors

Three factors—supply chain security, sustainability, and subsidies—feature prominently as semiconductor companies expand into new countries or regions.

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McKinsey & Company

GIIA

US is world’s most attractive destination for private infrastructure investment

Modernization of state transport, energy and water networks through public-private partnerships is crucial to maintain investment momentum

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GIIA

Deloitte

Revisiting the government’s role in catalyzing modern innovation

A toolkit for public sector organizations to energize ecosystems and spur innovation.

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Deloitte

Boston Consulting Group

Revolutionizing Infrastructure with Digital and AI

The public sector hasn’t fully harnessed the power of AI and digital for infrastructure projects. Here’s how states can get started.

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Boston Consulting Group

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