CHIPS Program Office Releases First Funding Opportunity

This week, the CHIPS Program Office released its first funding opportunity to boost domestic semiconductor manufacturing, solidify America’s technological leadership, and promote U.S. economic and national security. The bipartisan CHIPS and Science Act of 2022 provides $52.7 billion in federal funding to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives, $13.2 billion in R&D and workforce development, and $500 million to strengthen global supply chains. The CHIPS Program Office within the U.S. Department of Commerce is responsible for administering the $39 billion in incentives pursuant to Section 9902 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021.

The CHIPS Program Office’s first funding opportunity seeks applications for projects involving the construction, expansion, or modernization of commercial facilities for the fabrication of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end assembly, testing, and packaging. Pre-applications (optional) and full applications for leading-edge facilities will be accepted on a rolling basis beginning March 31, 2023. Pre-applications (recommended) for current-generation, mature-node, and back-end production facilities will be accepted on a rolling basis beginning May 1, 2023, and full applications for these categories will be accepted on a rolling basis beginning June 26, 2023.

The CHIPS Program Office expects to release two additional funding opportunities: one for semiconductor materials and manufacturing equipment facilities in late spring 2023, and one for R&D facilities in fall 2023. All potential applicants are encouraged to submit statements of interest beginning today so that the CHIPS Program Office may gauge interest in the program and prepare for application review.

The funding opportunity will provide direct funding (through grants, cooperative agreements, or other transactions), loans, and loan guarantees. There is no fixed amount for how much a project can receive in direct funding. Instead, the CHIPS Program Office will determine the direct funding amount through rigorous evaluation and analysis of the project’s expected returns, among other factors. Most direct funding awards are generally expected to range between 5-15% of project capital expenditures. A single application can result in an award that contains more than one type of incentive. The CHIPS Program Office generally expects that the total amount of an award, inclusive of direct funding and the principal amount of a loan or loan guarantee, will not exceed 35% of project capital expenditures.

Download the NIST Vision for Success: Commercial Fabrication Facilities Presentation here.