Blog

U.S. Department of Commerce releases implementation strategy for CHIPS for America program

  • Blog

    U.S. Department of Commerce releases implementation strategy for CHIPS for America program

    On September 6, the U.S. Department of Commerce (DOC) released its strategy for implementing its $50 billion CHIPS for America program, which will be housed within the DOC’s National Institute of Standards and Technology. The strategy was released in accordance with an Executive Order President Biden signed last month.

    The strategy outlines the program’s four strategic goals for implementation, including expanding domestic semiconductor production, building a stable supply of mature node semiconductors, investing in research and development (R&D) to ensure the next generation semiconductor technology is developed in the U.S. and creating tens of thousands of manufacturing and construction jobs.

    Additionally, the implementation strategy establishes three distinct initiatives, including:

    • Large-scale investments in leading-edge manufacturing: Roughly three-quarters of the program’s funding for incentives will be used to establish domestic production of leading-edge logic and memory chips through grants or cooperative agreements, or to subsidize loans or loan guarantees. DOC 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 chips, certain technologies and semiconductor industry suppliers: The remaining quarter of the funding for incentives will be used toward creative proposals from industry participants to 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.
    • Initiatives to strengthen U.S. 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 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 U.S.

    Eligible applicants for the incentive programs include private, public and nonprofit entities with a demonstrated ability to construct, expand, or modernize a facility relating to the research or production of semiconductors and materials to manufacture semiconductors. Davis-Bacon requirements will apply to CHIPS-funded construction projects, which ensures workers earn local prevailing wages. Applicants are encouraged to form collaborations with local governments, and proposals that demonstrate ample local support with significant worker and community investments will be prioritized.

    The full text of the strategy paper can be found here, or you can view the executive summary here. DOC plans to release funding documents with specific application guidance for the CHIPS for America program in February 2023. Awards and loans will be made on a rolling basis, and NACo will continue to monitor any available funding or partnership opportunities for counties.

    On September 6, the U.S. Department of Commerce (DOC) released its strategy for implementing its $50 billion CHIPS for America program, which will be housed within the DOC’s National Institute of Standards and Technology.
    2022-09-14
    Blog
    2022-09-20
DOC outlines strategy for implementing the $50 billion CHIPS for America Program Implementation of the CHIPS for America program includes incentives for manufacturing and investments in research and development and workforce development

On September 6, the U.S. Department of Commerce (DOC) released its strategy for implementing its $50 billion CHIPS for America program, which will be housed within the DOC’s National Institute of Standards and Technology. The strategy was released in accordance with an Executive Order President Biden signed last month.

The strategy outlines the program’s four strategic goals for implementation, including expanding domestic semiconductor production, building a stable supply of mature node semiconductors, investing in research and development (R&D) to ensure the next generation semiconductor technology is developed in the U.S. and creating tens of thousands of manufacturing and construction jobs.

Additionally, the implementation strategy establishes three distinct initiatives, including:

  • Large-scale investments in leading-edge manufacturing: Roughly three-quarters of the program’s funding for incentives will be used to establish domestic production of leading-edge logic and memory chips through grants or cooperative agreements, or to subsidize loans or loan guarantees. DOC 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 chips, certain technologies and semiconductor industry suppliers: The remaining quarter of the funding for incentives will be used toward creative proposals from industry participants to 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.
  • Initiatives to strengthen U.S. 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 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 U.S.

Eligible applicants for the incentive programs include private, public and nonprofit entities with a demonstrated ability to construct, expand, or modernize a facility relating to the research or production of semiconductors and materials to manufacture semiconductors. Davis-Bacon requirements will apply to CHIPS-funded construction projects, which ensures workers earn local prevailing wages. Applicants are encouraged to form collaborations with local governments, and proposals that demonstrate ample local support with significant worker and community investments will be prioritized.

The full text of the strategy paper can be found here, or you can view the executive summary here. DOC plans to release funding documents with specific application guidance for the CHIPS for America program in February 2023. Awards and loans will be made on a rolling basis, and NACo will continue to monitor any available funding or partnership opportunities for counties.

  • Basic page

    Economic Mobility Leadership Network

    The Economic Mobility Leadership Network (EMLN) is a NACo cohort of county leaders that facilitates and incubates county-specific discussion and problem-solving on issues of economic mobility and helps county leaders identify and assess their current barriers to mobility and share scalable and transferable programs across the country.
    page

    <p>Economic mobility refers to changes in an individual&rsquo;s economic status over a lifetime and across generations&mdash;usually measured in income.

  • Basic page

    Community, Economic & Workforce Development Steering Committee

    Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential, commercial, and industrial development, and building and housing codes. Policy Platform & Resolutions 2022-2023 2022 NACo Legislative Priorities
    page

    <p>Responsible for all matters pertaining to housing, community and economic development, public works, and workforce development including the creation of affordable housing and housing options for different populations, residential,

Related Posts

Related Resources

More From