The CHIPS Act has made a significant move to support the semiconductor industry in the United States. Now, projects with a capital investment below $300 million can also benefit from this program. This expansion opens doors for smaller businesses, emphasizing the construction, expansion, or modernization of commercial facilities involved in semiconductor materials and manufacturing equipment. These projects are poised to play a crucial role in strengthening the U.S. semiconductor ecosystem by providing essential equipment and materials for the semiconductor supply chain.
Accessible Application Process for Small Enterprises
The extended CHIPS Act has been designed to be accessible for smaller enterprises and projects. It consists of two phases:
Concept Plan Submission (December 1, 2023 – February 1, 2024): Applicants are required to submit a concept plan outlining how their proposed project aligns with the core strategic objectives, particularly focusing on U.S. economic and national security interests. This phases allows business to express their vision and demonstrate how they will contribute to the growth and resilience of the semiconductor industry.
Full Application Review and Invitation: After evaluating the concept plans, the Department of Commerce will identify the most promising applicants. These are the projects that shows businesses to express their vision and demonstrate how they will contribute to the growth and resilience of the semiconductor industry.
Full Application Review and Invitation: After evaluating the concept plans, the Department of Commerce will identify the most promising applicants. These are the projects that show a clear path toward advancing program priorities. The selected applicants will then be invited to submit a full application for CHIPS incentives. Specific dates for full application submissions will be communicated individually to the applicants.
Empowering the Semiconductor Ecosystem
Laurie E. Locascio, the Under Secretary of Commerce for Standards and Technology and NIST Director, highlights the crucial role of smaller supply chain projects in building a sustainable U.S. semiconductor ecosystem. By providing necessary equipment, materials, and supplies to large chipmaking facilities, the CHIPS for America program aims to revitalize domestic manufacturing. This comprehensive approach not only strengthens established industry players but also empowers a diverse range of businesses to contribute significantly to U.S. technology leadership and drive innovation for years to come.
The extension of the CHIPS Act to include projects with a capital investment below $300 million is a significant milestone for the U.S. semiconductor industry. This inclusive approach recognizes the essential contribution of smaller businesses to the domestic semiconductor ecosystem. By providing accessible avenues for participation, the program aims to establish a strong foundation for innovation and technological advancement. Looking ahead, the CHIPS Act is poised to propel the U.S. semiconductor industry into a new era of growth, resilience, and global leadership.