The U.S. Department of Commerce released its strategy for implementing the $50 billion CHIPS Act of 2022 program, which was signed by President Biden last month. Here are the highlights,
The CHIPS Act of 2022 program has four primary goals :
- Establish and expand domestic production of leading edge semiconductors in the US, of which the US currently makes 0% of the world’s supply
- Build a sufficient and stable supply of mature node semiconductors
- Invest in R&D to ensure the next generation semiconductor technology is developed and produced in the US.
- Create tens of thousands of good-paying manufacturing jobs and more than hundred thousand construction jobs. 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
The program supports three distinct initiatives:
- 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. Those amounts may be available for grants or cooperative agreements, or to subsidize loans or loan guarantees. 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. 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.
- 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. This initiative is broad and flexible, encouraging industry participants to craft creative proposals. 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. Those amounts may be available for grants or cooperative agreements, or to subsidize loans or loan guarantees.
- Initiatives to strengthen US leadership in R&D: The CHIPS R&D program will invest $11 billion in a National Semiconductor Technology Center, a National Advanced Packaging Manufacturing Program, up to three new Manufacturing USA Institutes, and in NIST metrology research and development programs. This constellation of programs is intended to create a dynamic new network of innovation for the semiconductor ecosystem in the United States. Executing this vision will require collaboration with academia, industry, and allied countries, and will require sustained investment over many years.
Funding documents, which will provide specific application guidance for the CHIPS for America program, will be released by early February 2023.
“Rebuilding America’s leadership in the semiconductor industry is a down payment on our future as a global leader,” said U.S. Secretary of Commerce Gina Raimondo. “CHIPS for America, will ensure continued US leadership in the industries that underpin our national security and economic competitiveness. 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.”
An 18-page strategy document is published here: https://www.nist.gov/system/files/documents/2022/09/06/CHIPS_Strategic_Plan_Sept_6_2022.pdf
CHIPS and Science Act funding processes get underway
Key provisions of the CHIPS and Science Act of 2022
