For this initiative, the Department expects dozens of awards with the total value expected to be at least a quarter of the available CHIPS incentives funding, or approximately $10 billion. This initiative is broad and flexible, encouraging industry participants to craft creative proposals. New manufacturing capacity for mature and current-generation chips, new and specialty technologies, and for semiconductor industry suppliers: The CHIPS incentives program will increase domestic production of semiconductors across a range of nodes including chips used in defense and in critical commercial sectors such as automobiles, information and communications technology, and medical devices.The Department will seek proposals for the construction or expansion of manufacturing facilities to fabricate, package, assemble and test these critical components, particularly focusing on projects that involve multiple high-cost production lines and associated supplier ecosystems. The Department is still assessing the impact of the newly enacted advanced manufacturing facility investment tax credit on capital expenditures, which will generate significant additional project investment from participants and will reduce the required share of CHIPS incentives funding allocated for leading edge projects. Those amounts may be available for grants or cooperative agreements, or to subsidize loans or loan guarantees. Large scale investments in leading edge manufacturing: The CHIPS incentives program will target approximately three quarters of the incentives funding, around $28 billion, to establish domestic production of leading-edge logic and memory chips that require the most sophisticated manufacturing processes available today.The program supports three distinct initiatives: This effort will ensure the pipeline for these jobs expands to include people who have historically not had a chance to participate in this industry, including women, people of color, veterans and people who live in rural areas. Create tens of thousands of good-paying manufacturing jobs and more than hundred thousand construction jobs.Invest in R&D to ensure the next generation semiconductor technology is developed and produced in the US.
Build a sufficient and stable supply of mature node semiconductors.Establish and expand domestic production of leading edge semiconductors in the US, of which the US currently makes 0% of the world’s supply.The strategy, released today, outlines the initiatives, strategic goals, and guardrails guiding the CHIPS for America program. Under President Biden’s leadership, we are once again making things in America, revitalizing our manufacturing industry after decades of disinvestment and making the investments we need to lead the world in technology and innovation.” “ CHIPS for America, will ensure continued US leadership in the industries that underpin our national security and economic competitiveness. “Rebuilding America’s leadership in the semiconductor industry is a down payment on our future as a global leader,” said U.S. The CHIPS for America program, housed within the Department’s National Institute of Standards and Technology (NIST), will revitalize the domestic semiconductor industry and spur innovation while creating good-paying jobs in communities across the country. Department of Commerce released its strategy outlining how the Department will implement $50 billion from the bipartisan CHIPS Act of 2022, signed by President Biden last month. Strategy includes key initiatives, timelines for funding notices, recommendations for successful applications
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