U.S. Opens Funding Applications Under CHIPS Act

The 2022 Chips and Science Act provided $39 billion in federal funding to revitalize the U.S. semiconductor industry. Now, the U.S. Department of Commerce, the oversight branch for the CHIPS Act, has taken the first step in opening up applications for this funding.

This initial funding opportunity focuses on applications specifically for projects to “construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors,” including front-end wafer fabrication and back-end assembly, testing, and packaging. Funding opportunities for semiconductor materials and equipment facilities will be opened up in the late spring, and one for R&D facilities will be opened in the late fall.

Funding Conditions

There are a number of factors that will be weighed when evaluating the applications. Of particular note, programs that provide for economic and national security, providing “stable, long-term onshore access” to semiconductors, will be prioritized, stipulating successful applicants “must enter into an agreement not to engage in any significant transaction involving the material expansion of semiconductor manufacturing capacity in any foreign country of concern for the 10-year period beginning on the date of the award, except under certain limited conditions.” Further, applicants must commit to a diverse workforce, and any applicant requesting more than $150 million in funding must provide for access to “affordable, accessible, reliable, and high-quality childcare.” Also, preference will be given to projects that also utilize “significant” private capital.

Applications

The five-part application process starts with a “Statement of Interest” which will be accepted on a rolling basis starting Feb. 28, 2023. Applicants can find more information about the application and evaluation process here and the application portal is here.

Overall Goals

As part of the announcement, the Commerce Department also released goals to be achieved by the end of the decade in this Vision for Success summary. Top goals include:

• Make the U.S. home to at least two new large-scale clusters of leading-edge logic chip fabs;
• Make the U.S. home to multiple, high-volume advanced packaging facilities;
• Produce high-volume leading-edge memory chips, and
• Increase production capacity for current-generation and mature-node chips, especially for critical domestic industries.

Related Reading
Re-Shoring And Rebuilding The IC Supply Chain
MITRE Engenuity’s CTO looks at what’s needed for advanced packaging, new and established nodes, materials, and new partnerships.
CHIPS Act: U.S. Releases New Implementation Strategy
Biden’s administration publishes strategy for implementing the CHIPS Act.