Semiconductor companies just got a boost on June 23, when the Department of Commerce announced a funding opportunity and application process for large semiconductor supply chain projects and will release later in the fall as eparate process for smaller projects.
Large semiconductor supply chain projects include materials and manufacturing equipment facility projects with capital investments equal to or exceeding $300 million, and smaller projects are below that threshold.
The funding is part of the CHIPS for America
“After the pandemic exposed holes and bottlenecks in our semiconductor supply chains that sent shockwaves across our economy, the CHIPS and Science Act is a historic opportunity to ensure our microchip supply chain resilience,” said Secretary of Commerce Gina Raimondo, in a statement “
Alongside the funding opportunity for larger supply chain projects, the Department also released a “Vision for Success” outlining strategic objectives for investments in the semiconductor supply chain, The goals in the vision paper include:
(1) strengthening supply chain resilience, including by reducing chokepoint risks flowing from the geographic concentration of critical semiconductor inputs;
(2) advancing U.S. technology leadership, including by incentivizing major U.S. manufacturing equipment and materials suppliers to increase their footprints in the United States and attracting non-U.S. suppliers of the world’s most advanced equipment, materials, and subsystems to establish large-scale footprints here;
(3) supporting vibrant U.S. fab clusters, including by ensuring that each CHIPS-funded cluster is supported by an ecosystem of reliable suppliers. Read more here about these goals in the supply chain Vision for Success paper.
Application Processes and Timelines
As part of the bipartisan CHIPS and Science Act, the Department of Commerce is overseeing over $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor manufacturing incentives. The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This same funding opportunity is now open to materials and manufacturing equipment facility projects with capital investments equal to or exceeding $300 million.
Large-scale supply chain projects that are now eligible will follow the five-part application process laid out in the first funding opportunity: statement of interest, pre-application (optional but recommended), full application, due diligence, and award preparation and issuance. Applicants will be evaluated based primarily on the extent to which the application addresses the program’s economic and national security objectives, but they will also be evaluated based on commercial viability, financial strength, project technical feasibility and readiness, workforce development, and broader impacts.
An additional funding opportunity will be released in the fall for supplier projects below the $300 million threshold with a tailored application that smaller businesses can navigate. Read more here about both funding opportunities.
Current CHIPS manufacturing incentives application processes and timelines:
- For leading-edge commercial facilities: Both pre-applications (optional) and full applications are being accepted on a rolling basis.
- For current-generation and mature-node commercial facilities: Pre-applications (optional but recommended) are currently being accepted on a rolling basis and full applications will be accepted on a rolling basis starting June 26, 2023.
- For larger materials and manufacturing equipment supplier facility projects with capital investments equal to or exceeding $300 million: Pre-applications (optional but recommended) will be accepted on a rolling basis starting September 1, 2023, and full applications will be accepted on a rolling basis starting October 23, 2023.
- For all potential applicants: The Department continues to accept statements of interest on a rolling basis to further inform the program of interest and make for efficient application review.
Forthcoming CHIPS manufacturing incentives applications processes and timelines:
- For smaller materials and manufacturing equipment supplier facility projects below $300 million: The Department will release an additional funding opportunity in the fall with details on the application process and timeline. For more information about this forthcoming funding opportunity, see here.
- For commercial R&D facilities: The Department will subsequently release a separate funding opportunity with details on the application process and timeline.