CHIPS Incentives Program – Commercial Fabrication Facilities

Background
The CHIPS Incentives Program aims to catalyze long-term economically sustainable growth in the domestic semiconductor industry in support of U.S. economic and national security. This is the first Notice of Funding Opportunity under this program. It seeks applications for projects for the construction, expansion, or modernization of commercial facilities for the front- and back-end fabrication of leading-edge, current-generation, and mature-node semiconductors.

Grant Details
The program aims to strengthen U.S. economic and national security by mitigating gaps and vulnerabilities in the semiconductor supply chain, providing a supply of secure semiconductors relevant for national security, strengthening U.S. leadership in semiconductor technology, growing the U.S. economy, supporting job creation, bolstering the semiconductor and skilled technical workforces in the U.S., promoting inclusion of economically disadvantaged individuals and small businesses, improving resilience of semiconductor supply chains of critical manufacturing industries.

Eligibility Requirements
Eligible applicants include private entities or consortia of private and public entities that can demonstrate the ability to substantially finance, construct, expand, or modernize an eligible facility. Funding is available only to covered entities 'to incentivize investment in facilities and equipment in the United States' for the fabrication, assembly, testing, advanced packaging, or production of semiconductors. The covered entity must have a documented interest in constructing, expanding, or modernizing an eligible facility and meet specific requirements related to worker and community investment commitments.

Grant Value
The Federal investment from the CHIPS Incentives Program in an individual project may not exceed $3 billion unless it is certified to Congress that the larger investment is necessary to significantly increase the proportion of reliable domestic supply of semiconductors relevant for national security and economic competitiveness that can be met through domestic production; and meet the needs of national security.