CHIPS Incentives Program – Commercial Fabrication Facilities

Program Overview 

     On February 28, 2023, the Biden-Harris administration released the first CHIPS for America Notice of Funding Opportunity (NOFO) through the U.S. Department of Commerce’s National Institute of Standards and Technology. The CHIPS Incentives Program, authorized by the CHIPS and Science Act of 2022, supports projects that will foster sustainable economic growth in the domestic semiconductor industry. Specifically, the NOFO calls for projects that will generate the construction, expansion, or modernization of commercial facilities for the front- and back-end fabrication of leading-edge, current-generation, and mature-node semiconductors. 

 

Key Priorities & Objectives

Key priorities of the CHIPS for America program include: 

• Catalyzing private investment;

• Protecting taxpayer dollars;

• Building a skilled and diverse workforce;

• Engaging with U.S. partners and allies; and

• Driving economic opportunity and inclusive economic growth.

 

The Chips Act outlines the following objectives to support these priorities:

• Strengthening the security and resilience of the semiconductor supply chain, including by mitigating gaps and vulnerabilities

• Providing a supply of secure semiconductors relevant for national security

• Strengthening the leadership of the United States in semiconductor technology

• Growing the economy and supporting job creation in the United States

• Bolstering the semiconductor and skilled technical workforces in the United States

• Promoting the inclusion of economically disadvantaged individuals and small businesses

• Improving the resilience of the semiconductor supply chains of critical manufacturing industries

 

Eligibility 

     The Department seeks to fund applicants that “demonstrate a commitment to investment in the United States for the long term and projects that maximize private sources of capital.” Eligible applicants must be a “covered entity,” which the NOFO defines as “a nonprofit entity; a private-sector entity; a consortium of private-sector entities; or a consortium of nonprofit, public, and private-sector entities with a demonstrated ability to substantially finance, construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced packaging, or production of semiconductors.” Note: There is no set maximum for how much a project can receive in CHIPS Incentives. In addition, while cost sharing or matching funds is not required for this opportunity, the notice highlights that selected projects will be majority funded from non-Federal sources.

 

Key Dates

Statements of interest:

SOIs are currently being accepted on a rolling basis as of February 28, 2023.

Must be submitted at least 21 days before applying.

For leading-edge facilities:

Both pre-applications (optional) and full applications will be accepted on a rolling basis starting March 31, 2023.

For current-generation, mature-node, and back-end production facilities:

Pre-applications will be accepted on a rolling basis starting May 1, 2023 (recommended).

Full applications will be accepted on a rolling basis starting June 26, 2023.

 

Upcoming Funding 

     The CHIPS Program Office is also planning to release two additional funding opportunities for the CHIPS Incentives Program. In late spring 2023, the CHIPS Program Office intends to release a funding opportunity focused on the construction, expansion, or modernization of facilities for semiconductor materials and manufacturing equipment. In early fall 2023, the CHIPS Program Office intends to release a funding opportunity for the construction, expansion, or modernization of facilities for research and development.

 

Resources: 

View the Opportunity here.

Download the NOFO here.

View the Press release here.