CHIPS and Science Act

The CHIPS and Science Act, passed in August 2022, invests $52.7 billion into the semiconductor industry in aim of revitalizing U.S. manufacturing. Semiconductor capacity in the United States has declined from 37% of worldwide output in 1990 to just 12% today, putting the country at risk of falling behind in the ecosystem.

The investment will benefit manufacturing, supply chain, national security, and research and development technology.

The CHIPS Act allocates:

• $39 billion in manufacturing incentives
  • Approximately $28 billion will support large-scale investments in leading-edge logic and memory manufacturing clusters
  • Approximately $10 billion will support manufacturing capacity for mature and current-generation chips, new and specialty technologies, and suppliers to the semiconductor industry.
    • This includes at least $2 billion for mature technology used in automobiles and defense systems
  • Up to $6 billion may be used for direct loans and loan guarantees
• $13.2 billion in R&D and workforce development
  • $11 billion to establish the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program, and other R&D and workforce development programs
  • $2 billion to implement the Department of Defense’s Microelectronic Commons, an R&D and semiconductor workforce training network
  • Includes $200 million toward workforce development by leveraging National Science Foundation activities
• $500 million for international information communications technology security and semiconductor supply chain activities

It also provides a 25% tax credit for investments in semiconductor manufacturing and related equipment for which construction begins between tax years 2023 and 2026.

In the accompanying Public Wireless Supply Chain Innovation program (known as ORAN), $1.5 billion is allocated to promote and deploy wireless technologies that use open and interoperable radio access networks.

More information can be found on the White House website.

Find a section-by-section summary on the U.S. Dept. of Commerce website.

How do I apply for CHIPS Act funding?

The first guidelines to apply for CHIPS funding were released Feb. 28, with two more announcements expected in the late spring and early fall. Subscribe to the mailing list of the Dept. of Commerce to receive updates and check back here after the guidelines are released for more.

Applicants must address six program priority areas: economic and national security, commercial viability, financial strength, project technical feasibility and readiness, workforce development, and broader impacts.

The first funding round and the large-scale projects of the second funding round follow the same five-step application process:

To apply, visit the CHIPS application page and click on the “log in” button in the top right corner to register.

Five-part application process:

1. Statement of Interest: Briefly describe the proposed project.
2. Pre-Application (Optional): Submit a more detailed description, and the CHIPS Program Office will provide feedback and a recommendation for next steps. A detailed pre-application guide can be found here. Visit this page for templates and examples.
3. Full Application: Provide detailed information on the project(s), including the technical and financial feasibility and alignment with economic and national security objectives. Application model guidelines can be found here, while other instructions and an example can be found here.
4. Due Diligence: If the project is reasonably likely to receive an award, the project will enter a due diligence phase with the CHIPS Program Office in which the applicant provides additional national security, financial and environmental information, among other topics.
5. Award Preparation and Issuance: The Department of Commerce will prepare and issue an award. Direct funding and loans will be disbursed in tranches tied to project milestones.

Apply here.

First funding round: Semiconductor production facilities

The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging.

Full applications are accepted on a rolling basis as of June 26.

Find more information here:

• Application process and evaluation fact sheet 
• Guidelines and templates
• NIST landing page with additional resources
• Vision for Success sheet

Second funding round: Supply chain projects

The second funding round is broken into two parts: one for larger-scale materials and manufacturing equipment, and the other for smaller projects. Applicants are encouraged to explain how their project would strengthening supply chain resilience, advance U.S. technology leadership, and support fab clusters in the country. Find more details here.

Large-scale supply chain projects

Applicants seeking to construct, expand or modernize materials or manufacturing equipment facilities with a capital investment of at least $300 million. Pre-applications may be submitted as of Sept. 1 and full applications as of Oct. 23.

NIST stated that applications that address economic and national security objectives will be judged more favorably, but also stressed that considerations including commercial viability, financial strength, project technical feasibility and readiness, workforce development and broader impacts will be evaluated as well.

Find more information here.

Smaller-scale supply chain projects

Applicants seeking to construct, expand or modernize materials or manufacturing equipment facilities with a capital investment under $300 million. These projects will produce the equipment, chemicals, gases and other materials used in semiconductor manufacturing. The application process for this NOFO, announced Sept. 29, is different than the other two:

• Step 1: Concept Plan: Describe how the proposed project addresses core strategic objectives, including economic and national security goals. These are accepted until Feb. 1.
• Step 2: Full Application: The DOC will review concept plans and invite the most promising applicants to continue to the full application using the same guidelines as the other NOFOs. Submission dates will be provided by the DOC directly to applicants approved for this step.

The application portal for the small supply chain concept plan is open. Get further NIST application guidance here and here.

The Dept. of Commerce recommended that projects working to support fab clusters apply as part of a consortium. These consortiums may include supplier facilities, state or local government entities, an anchor institution such as a semiconductor fab, workforce providers, higher education institutes, industry organizations or other relevant entities. Find supply chain information here.

Find more information about the smaller-scale supply chain project here.

For general inquiries about the second NOFO, email askchips@chips.gov.

Third funding round: Research and Development (R&D)

The third funding round is for applicants seeking funding for R&D activities that will increase capacity for advanced packaging substrates and substrate materials. The program is planning to use about $300 million in funding toward this round, with rewards up to $100 million for technologies ranging from semiconductor-based to glass to organics.

Companies rewarded will work alongside the CHIPS National Advanced Packaging Manufacturing Program (NAPMP). There are six priorities for research investment:

• Materials and substrates
• Equipment, tools, and processes
• Power delivery and thermal management for advanced packaging assemblies
• Photonics and connectors that communicate with the outside world
• A chiplet ecosystem
• Co-design of multi-chiplet systems with automated tools

The application process consists of two primary components:

• Step 1: Mandatory concept paper. This will include basic information about the applicant and request; an executive summary and quad chart; and a narrative. The summary and narrative must include an impact statement, project plan, description of the team and their roles, an appendix, and a budget estimate that does not exceed $100 million. Get more information beginning at the bottom of page 39 on this document. This is due April 12.
• Step 2: Full application process. The department will review the concept papers and invite select applicants to continue to this stage in the process. This step will include addition information about the technical plan, education and workforce development, commercial viability, domestic production plan, broader impacts, and more. Read more details beginning at the bottom of page 43 on this document. This is due on July 3.

Apply here. The application portal for the mandatory concept paper is open.

Get more information about the third NOFO here.

For all three NOFOs, awards and loans will be made on a rolling basis. Additional documents can be found in the resources section of this webpage.