Guidance for Implementation of CHIPS and Science Act Released
The Commerce Department's strategy includes key initiatives, timelines for funding notices, recommendations for successful applications
The Commerce Department is acting quickly to disburse funding from the CHIPS and Science Act and today released its strategic plan that will guide how funding is issued. The guide includes information on the organization and governance of implementation, eligibility criteria for potential applicants, and the key initiatives under the program. Key highlights include:
On organization:
The Commerce Department will create two new offices to implement the program: the CHIPS Program Office and the CHIPS R&D Office.
On eligibility:
Eligible applicants are: a private entity, a nonprofit entity, a consortium of private entities, or a consortium of nonprofit, public, and private entities
On key initiatives:
The strategy focused on three main initiatives under the CHIPS Act, which are:
Large-scale investments in leading-edge logic and memory manufacturing clusters: The CHIPS program aims to establish domestic production of leading-edge logic and memory chips that require the most sophisticated processes available today. 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 majority of funding (~$28B) will be focused on this initiative and may comprise of grants or loans / guarantees. Applications are expected to open within the next 6 months.
Expanding manufacturing capacity for mature and current-generation chips, new and specialty technologies, and for suppliers to the industry: The CHIPS 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. About $10B will be available in this program as grants, loans, or loan guarantees. Applications are expected to open within the next 6 months.
Initiatives to strengthen and advance U.S. leadership in R&D: 4 R&D initiatives will be established with $11B in funding from the CHIPS Act to create a dynamic, new network of innovation for the semiconductor ecosystem in the United States. Funding from these initiatives are meant to be longer-term investments to sustain competitiveness over time.
More information can be found in the Commerce Department’s full strategy, press release, or this Tracker’s Helpful Resources page for the CHIPS and Science Act.