N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 1

CHIPS for America

Financial Information for Full Application

June 29, 2023
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 2

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 2

TODAY'S CHIPS PROGRAM OFFICE SPEAKERS

Sara O’Rourke

Investments Office Chief 

of Staff and Head of 

Operations

Franklin Keller

Investments Office

Investment Director

Mary Alex Smith

Investments Office

Investment Principal

Olivia Briffault

Investments Office 

Investment Principal

Sophia Rubio

Public Engagement
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 3

AGENDA & OBJECTIVES FOR TODAY

Agenda

• Intro & Reminder of CHIPS for America Vision, 

Application Process, and Program Priorities – 20

mins

• Overview of and Deep Dives into Financial 

Information Sections of Full Application – 40 mins

• Next Steps and Additional Resources – 5 mins

• Q&A – 5 min

By the end, attendees should 

understand

• What financial information 

applicants should submit as part 

of a full application

• What the program’s expectations 

are with respect to financial 

information submitted

• How to demonstrate whether an 

application aligns with the 

financial and commercial program 

priorities
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 4

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 4

COMMERCIAL FABRICATION FACILITIES NOFO

The CHIPS Incentives Program - Commercial Fabrication Facilities NOFO is the official 

funding announcement document. Nothing in this presentation or the accompanying materials 

is intended to contradict or supersede information in the NOFO. The NOFO controls in the 

event of any conflicts
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 5

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 5

CHIPS FOR AMERICA VISION

Economic 

Security

The CHIPS Act will 

strengthen supply chain 

security and increase 

economic resilience in critical 

sectors.

National 

Security

The CHIPS Act will 

support U.S. manufacture 

of high-quality and secure 

chips for defense and other 

critical infrastructure 

applications.

Future 

Innovation

The CHIPS Act will spur 

innovation, increase 

competitiveness, and 

ensure long-term U.S. 

leadership in the sector.
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 6

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 6

FUNDING OPPORTUNITIES

Released 

February 28, 2023

1st Notice of Funding 

Opportunity

For commercial 

leading-edge, current, 

and mature node 

fabrication facilities

Focus of today’s webinar

Released 

June 23, 2023

Amendment to 1st 

Notice of Funding 

Opportunity

For large semiconductor 

materials and equipment 

facility projects $300M+ 

capital investments

2nd Notice of Funding 

Opportunity

For smaller 

semiconductor 

materials and 

equipment facility 

projects under $300M 

capital investments

3

rd Notice of Funding 

Opportunity

To support the 

construction of 

semiconductor R&D 

facilities
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 7

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 7

APPLICATION PROCESS

Statement of interest (open to all)

Pre-application (optional)

Full application

Due diligence

Leading-edge

Current-gen, 

mature-node, 

and back-end

Large Supply 

Chain Projects

February 28, 

2023

February 28, 

2023

February 28, 

2023

March 31, 2023 May 1, 2023

September 1, 

2023

March 31, 2023 June 26, 2023 October 23, 2023

Feedback

Award preparation

Submissions accepted as of....

Focus for today
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 8

PROGRAM PRIORITIES

Economic 

and national 

security 

objectives

Commercial 

viability

Financial 

strength

Technical 

feasibility 

and 

readiness

Workforce 

development Broader

impacts

Deep dive on next pages
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 9

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 9

Commerical Viability

Evaluation Criterion #2

Demand for the 

product

Size / diversity

of customer base

Existing and 

planned supply

Expected volume 

and pricing 

dynamics

Ability to counter 

potential 

technological 

obsolescence of the 

facility

Stability and 

predictability of key 

supplies
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 10

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 10

Financial Strength

Evaluation Criterion #3

Financial 

strength of the 

applicant/parent

Financial 

strength of the 

project

Commitment of 

private / third 

party investment

Reasonableness 

/ suitability of 

CHIPS funding 

request
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 11

Funding Instruments & Allocation 

Funding Instruments

Fundings 

Instruments can 

be combined in 

multiple ways

CHIPS Incentive Awards are not 

meant to be a primary source of funding

Direct 

funding

Loans Loan 

guarantees

Primary funding sources: 

- Private Investments 

- Investment Tax Credit (26 U.S.C. § 48D)

- State & Local Incentives

Total funding Funding by project

For CHIPS Direct 

Funding, up to $38.2B 

available in total

Direct funding is 

generally expected to 

be 5-15% of project 

capital expenditures

For CHIPS Loans and 

Loan Guarantees, up 

to $75B in total in direct 

loan or guaranteed 

principal 

Expected total amount 

of a CHIPS Incentives 

Awards generally 

expected not to exceed 

35% of project capital 

expenditures

CHIPS Incentives Request guidelines are calculated 

from project capital expenditures, not total project costs
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 12

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 12

FULL APPLICATION FINANCIAL INFORMATION

Key Differences vs. Pre-Application

Pre-Application Full Application

Overall Objective Create an opportunity for dialogue 

between CPO and the potential applicant to 

ensure the proposed application would meet 

program requirements and address program 

priorities

Enable the evaluation of the merit of 

proposed projects and the negotiation of 

preliminary terms of a potential award

Sources and Uses of 

Funds & 

CHIPS Incentives 

Request

Figures provided are expected to be 

estimates and are permissible to be rough 

approximations for high-level cost categories

Figures expected to be completed on a bestefforts basis with exact amounts 

and additional breakdown of categories

Dynamic, Integrated

Spreadsheet

High-level summary of the expected 

revenues, costs, and cash flows for each 

project

• Detailed project cash flow, income 

statement, and balance sheet projections 

and relevant performance and risk metrics 

for each project

• Scenario analysis to explore potential 

outcomes and evaluate financial resilience 

of each project
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 13

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 13

Full Application

A. Cover Page

B. Covered Incentive

C. Description of Project

D. Applicant Profile

E. Alignment with Economic Resilience and 

National Security Objectives

F. Commercial Strategy

G. Financial Information

H. Project Technical Feasibility

I. Organization Information

J. Workforce Development Plan

K. Broader Impacts

L. Standard Forms

Key reminder

Deep dive in subsequent pages

Legend

KEY SECTIONS TO COVER TODAY

B. Covered Incentive

State or Local Government letter offering offered a qualifying covered incentive –

required for award; should also be indicated as a source of funds

C. Description of Project

Includes Justification for CHIPS Incentives – important to explain how the 

CHIPS incentives requested will incentivize the applicant to make 

investments in the US that would not occur otherwise

D. Applicant Profile

Key applicant information including company financials, equity capital structure, 

and outstanding debt

F. Commercial Strategy

Includes information on customer and end-market demand – important to 

provide top customer, actual use cases, and potential use cases as available

G. Financial Information

Key financial information for the project, including sources and uses, financial 

statement and metrics, scenario analysis, incentives request, loan or loan 

guarantee request

I. Organization Information 

Key details on the organization including structure, past project history and others
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 14

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 14

D. APPLICANT PROFILE

Full Application

Applicant Profile

I. Descriptive Applicant Information Descriptive narrative

II. Company Financials Provide audited and interim financial statements, 

key financial metrics, and credit rating information 

III. Equity Capital Structure Provide information on shareholders, equity 

structure, and planned equity issuances

IV. Outstanding Debt Provide details of outstanding debt and planned 

debt issuances

D. Applicant Profile

Web Form

Excel Upload

PDF Upload

Legend
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 15

II. COMPANY FINANCIALS

Application Materials

Document Upload, including

• Audited Consolidated 

Financial Statements - At fiscal year-end 

for each of the past 5 years

• Interim Financial Statements (if 

available) - For current year

• Financial metrics - Include all 

available metrics

• Credit Ratings - Include NRSRO ratings 

and latest rating reports

D. Applicant Profile – II. Company Financials

If applicants are unable to provide 

all information requested they 

should provide what they can

PDF Excel

Resources Available

• Commercial Fabrication Facilities NOFO

Financial Metrics should include,

• Margin

• Free cash flow and return information

• Leverage

• Debt service coverage

• Related ratios – refer to NOFO 

Section IV.I.4 for full list of related 

ratios

• Asset coverage ratios

• Working capital ratios
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 16

IV. OUTSTANDING DEBT

Application Materials

Document Upload

• Schedule listing outstanding debt

• Description of planned 

debt instruments

• Cash information and net 

debt calculations

D. Applicant Profile – IV. Outstanding Debt

PDF Excel

Resources Available

• Commercial Fabrication Facilities NOFO

Provide details on Outstanding 

Debt including information such as size, cost of 

financing, seniority of instruments, maturity, 

collateral pledged to lenders, and any restrictive 

covenants inhibiting the company’s ability to take 

on additional debt

If applicants are unable to provide exact 

figures due to confidentiality restrictions, they 

should provide approximate information.
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 17

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 17

G. FINANCIAL INFORMATION

G. Financial Information

Web Form

Excel Upload

PDF Upload

Full Application

G. Financial Information

I. Financial Plan Detailed description of project financial plan

II. Sources and Uses of Funds Descriptive narrative and details on project costs 

and project capital sources

III. Project Financial Statements and Metrics

Project cash flow, income statement, and 

balance sheet projections and relevant metrics 

for each project

IV. Scenario Analysis

Evaluation of financial resilience of each project 

by illustrating the financials under a plausible 

range of scenarios 

V. CHIPS Incentives Request Summary of requested dollar amounts for CHIPS 

Direct Funding, Loan and/or Loan Guarantee

VI. CHIPS Loan or Loan Guarantee Request Description of proposed terms for Loan and/or 

Loan Guarantee Request
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 18

PDF

I. FINANCIAL PLAN

G. Financial Information - I. Financial Plan

Application Materials

Financial Plan

Detailed description of project financial plan including, 

• Sources and Uses of Funds – written summary of 

the project costs and capital sources

• Cash Flow projections – description and 

justification on the assumptions and methodology 

used for use the financial model

• Key equity return and debt service metrics –

description and justification for metrics used in the 

financial model

• CHIPS Incentives request - narrative description of 

rationale and justification for the incentives request

• Scenario Analyses - description of rationale for the 

scenarios selected and summary of the financial 

resilience of each project

Pre-App and Full App Comparison

• Both Pre-App and Full App require a 

summary narrative for the financial 

information

• However, the Full Application requires a 

financial plan per project proposed 

and incorporates narratives on cash 

flow projections, key equity return 

and debt service metrics and the 

sensitivity analysis

Resources Available

• Commercial Fabrication Facilities NOFO
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 19

Information provided 

on spreadsheet 

should match the 

information provided 

on the web form

Excel Web Form

II. SOURCES AND USES OF FUNDS

G. Financial Information - II. Sources and Uses of Funds

Application Materials

Narrative

Descriptive summary of the project costs and 

capital sources (in I. Financial Plan)

Spreadsheet Template

Figures for the project costs and capital sources 

for each facility reported and the aggregated 

total for all facilities

Web Form

Spreadsheet calculated totals for project uses, 

sources and the sum of state and local 

government incentives

Pre-App and Full App Comparison

• Both Pre-App and Full App require Sources & 

Uses of Funds

• However, there are different templates for Preand Full App – the Full Application Full 

Application requires more detail

Resources Available

• Commercial Fabrication Facilities NOFO

• Sources and Uses of Funds Instructions

• Full Application Sources and Uses of Funds 

template

Deep Dive on the next page
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 20

Excel

II. SOURCES AND USES OF FUNDS

Template Sources and Uses

The Sources and Uses 

spreadsheet template contains 

multiple sheets:

• Complete a separate “S&U –

Project #” for each project

• Populate the “S&U -

Summation across projects” 

sheet

A “project” is a set of capital 

expenditures for the construction, 

expansion, or modernization of a 

single facility

The summation 

sheet should be 

linked across 

project sheets

G. Financial Information - II. Sources and Uses of Funds

D

C

B

A

The summation sheet 

also contains Free 

Response Questions

Schedule C - Operating 

Cash Flows until Project 

breaks even on a Cash 

Flow basis

Schedule B – Funding 

Sources

Schedule A – Uses

Each sheet contains 3 schedules 

Web Form

In Sources and Uses, Total project 

capital sources should equal the 

project costs

Note: Screenshots from Pre-App Template shown. 

Make sure to use the Full App S&U template

C

A B
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 21

Excel Web Form

II. SOURCES AND USES OF FUNDS

Template Sources and Uses – Schedule A

A

G. Financial Information - II. Sources and Uses of Funds

Schedule A - Uses 

Schedule 

Figures for both 

hard/physical asset costs 

and soft/implementation 

costs in the cost estimate

Investment Tax Credit 

Indicate the estimated 

percentage of costs 

that will be eligible for 

the Investment Tax 

Credit for each line 

item in this schedule

Components

1. Capital Investment

2. Operating losses 

and other cash 

outflows until project 

breaks even on a 

cash flow basis

3. Workforce 

development costs

4. Other Uses of 

Funds

Funds made available under 

the CHIPS Incentives 

Program may be put only to 

eligible uses – refer to NOFO

Section I.B.6
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 22

Excel

II. SOURCES AND USES OF FUNDS

Template Sources and Uses – Schedule B

B

G. Financial Information - II. Sources and Uses of Funds

Web Form

Schedule B: Funding 

Sources Schedule 

Figures for all sources of 

funding that will 

contribute to the project

Components

1. Equity Funding

2. Debt Funding

3. Government 

Support

4. Other Sources of 

Funds

Investment Tax 

Credit

The estimation

should take into 

consideration the 

initial ITC received 

on the asset

net of the loss of 

depreciation on the 

portion of assets 

receiving the credit
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 23

Excel Web Form

II. SOURCES AND USES OF FUNDS

Template Sources and Uses – Schedule C

C

G. Financial Information - II. Sources and Uses of Funds

Schedule C - Operating 

Cash Flows until Project 

breaks even on a Cash 

Flow basis

Detailed breakdown of 

revenues, operating 

expenses, other operating 

income, other cash flow 

items and financing costs 

& taxes until project 

breaks even on a cash 

flow basis

Break even is the point in time when 

cashflows turn positive and the facility can 

sustain itself without additional funding

Components

1. Total sales until projects break even 

on cash flow basis

2. Total operating expenses until 

projects break even on a cash flow 

basis

3. Other operating income until 

projects break even on a cash flow 

basis

4. Other cash flow items until projects 

break even on a cash flow basis

5. Total financing costs and taxes until 

projects break even on a cash flow 

basis

Schedule C: Project # - Schedule for Operating Cash Flows until Project breaks even on a Cash Flow basis
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 24

Excel Web Form

II. SOURCES AND USES OF FUNDS

Template Sources and Uses – Schedule D

D

G. Financial Information - II. Sources and Uses of Funds

Summation across 

projects – Free 

Response Questions

Six free response 

questions are included 

to allow the applicant to 

provide commentary

Questions (abbreviated)

Question 1: Provide an explanation on how the equity 

injected into the project legal entity (by the applicant, 

its corporate parent or third-party partners) is funded...

Question 2: If known, provide information on the key 

features and terms & conditions related to the debt 

funding raised by the applicant...

Question 3: Explain how you estimated the value of the 

benefit from the Investment Tax Credit.

Question 4: Are there any other state or local 

incentives that provide funding in a form that is not a 

direct grant or loan, such as reduced utilities costs, 

reduced taxes, etc.? ....

On the summation 

sheet, complete all 

applicable Free 

Response Questions
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 25

PDF Excel

III./IV. PROJECT FINANCIAL STATEMENTS AND METRICS & 

SCENARIO ANALYSIS

Application Materials

III./IV. Dynamic, Integrated Spreadsheet

Project-level financial statements should include 

detailed cash flow, income and balance sheet 

statements for each facility, through the end of the 

facility’s useful life as well as a scenario analysis 

with stressing model parameters under a range of 

scenarios or assumptions

IV. Scenario Analysis - Narrative

Description of rationale for the scenarios selected 

and summary of the financial resilience of each 

project (in I. Financial Plan)

Financial Model

The Example Financial Model provided for 

the Pre-Application is not suitable for the Full 

Application due to lower granularity, metrics 

and scenario analysis; Applicants are 

encouraged to use their own internal models 

so long as they adhere to the guidelines

G. Financial Information - III./IV. Project Financial Statements and Metrics & Scenario Analysis

Resources Available

• Commercial Fabrication Facilities NOFO

• Guiding Principles for Full Application 

Financial Model

Deep Dive on the next page

Pre-App and Full App Comparison

• Both Pre-App and Full App require 

dynamic, integrated spreadsheet for 

project financial information

• However, the Full Application also 

requires more detailed inputs and 

assumptions, the addition of key 

performance and risk metrics, and a 

range of embedded scenario analysis
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 26

PDF Excel

III./IV. PROJECT FINANCIAL STATEMENTS AND METRICS & 

SCENARIO ANALYSIS

Guiding Principles – Model Structure

A Model Structure

Model worksheets should be 

fully dynamic and linked 

through formulas and 

calculations, rather than 

hardcoded values, to allow 

traceability across the 

various inputs, processing, 

and output spreadsheets

G. Financial Information - III./IV. Project Financial Statements and Metrics & Scenario Analysis
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 27

PDF Excel

III./IV. PROJECT FINANCIAL STATEMENTS AND METRICS & 

SCENARIO ANALYSIS

Guiding Principles – Granularity

B

Submissions that lack sufficient 

granularity may require requests 

for additional information, which 

could cause delays in the review 

process

Granularity

Detailed financial inputs are 

critical for a comprehensive 

review of the project’s 

financial strength

G. Financial Information - III./IV. Project Financial Statements and Metrics & Scenario Analysis

Principle Description

Consistency

Assumptions should generally have a consistent 

level of detail across the model, informed by the 

size and complexity of the project and the level 

of detail the applicant uses to evaluate its business

Reasonableness Assumptions should be sensible and derived from 

reputable data sources

Functionality

Assumptions should be broken down into a 

comprehensive set of underlying drivers, there 

should be traceability to all underlying components, 

such that they can be validated and sensitized
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 28

PDF Excel

III./IV. PROJECT FINANCIAL STATEMENTS AND METRICS & 

SCENARIO ANALYSIS

Guiding Principles – Metrics

C Metrics

Applicants should capture 

key outputs in the form of 

internal rate of return

(IRR), financial performance 

metrics, and risk and debt 

service metrics

G. Financial Information - III./IV. Project Financial Statements and Metrics & Scenario Analysis

Principle Description

Relevance

Metrics should reflect the most appropriate 

measures of performance and risk based upon 

the project type and underlying business

Comprehensive Applicants should include all metrics needed to 

assess project risks and performance

Standardized Metrics should be consistent with industry 

standards and best practices
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 29

PDF Excel

III./IV. PROJECT FINANCIAL STATEMENTS AND METRICS & 

SCENARIO ANALYSIS

Guiding Principles – Scenario Design

D Scenario Design

Scenario 

analyses should 

flow through the 

end-to-end model 

to demonstrate

the impact on the 

output financials 

as well as the 

risk, performance, 

and return 

metrics

Principle Description

Appropriateness

Scenarios should reflect historical events or hypothetical situations to 

test how a project would perform under a range of possible outcomes 

with varying degrees of likeliness of occurring

Variety Define and test a diverse range of scenarios and magnitudes to 

comprehensively assess key project risks and upsides. 

Impact

Scenarios that are highest impact on the forecast should be prioritized 

to understand what the most material risks to the project are and how 

they impact the risk and return distributions

Directionality

Scenarios should show how the project performs under a variety of 

positive and negative scenarios to show the upside and downside 

ranges that may occur

Timing

Scenarios should assess impacts across the useful life of the facility 

to understand the stress at other points that may cause the project to 

become at risk

G. Financial Information - III./IV. Project Financial Statements and Metrics & Scenario Analysis
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 30

PDF Web Form

V. CHIPS INCENTIVES REQUEST

Application Materials

Web Form

A summary of the funding request and

available credit ratings

Narrative

Narrative description that includes the rationale for 

the incentives request, how the financial information 

submitted supports a conclusion that the CHIPS 

Incentives requested will incentivize the applicant to 

make investments in facilities and equipment in the 

U.S., description of how the CHIPS Incentives 

requested were sized based on applicable analyses 

and why the request is appropriate, and description 

of specific efforts to date to bring other capital (in I. 

Financial Plan)

G. Financial Information - V. CHIPS Incentives Request

Resources Available

• Commercial Fabrication Facilities NOFO

• Full Application Instructions

Pre-App and Full App Comparison

• Both Pre-App and Full App require 

summary of the funding request and 

accompanying narratives

• However, the Full Application requires 

exact amounts for the funding request as 

well as a rationale for the incentives 

request and a description of specific 

efforts to bring other capital

Applicants should justify their incentives 

request – including the extent to which the 

CHIPS Incentives requested will incentivize 

the applicant to make investments in 

facilities and equipment in the United States 

that would not occur in the absence of the 

incentives.
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 31

VI. LOAN OR LOAN GUARANTEE REQUEST

Application Materials

Narrative

Description of the proposed terms of the Loan / Loan 

Guarantee, explanation of efforts to attract debt 

financing from other sources, and financial / credit 

related information for any third-party lenders or other 

entities providing credit support

G. Financial Information – VI. Loan or Loan Guarantee Request

Resources Available

• Commercial Fabrication Facilities NOFO

• Full Application Instructions

Deep dive on the next page for

Terms for Loan and/or Loan 

Guarantees 

PDF
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 32

VI. LOAN OR LOAN GUARANTEE REQUEST

Interest Rate

Rates will generally be based on the cost of funds to the Department of Treasury for obligations of a comparable 

maturity plus a portion of the spread to the market rate for similar commercial loans or debt.

Tenor

Loans may be extended for a term that covers the construction period, plus up to 15 years. The maximum tenor is 

25 years.

Structure

Depending on the project, loans will be available on both a corporate and project finance basis.

Amortization

Corporate finance loans may be bullet loans repayable at maturity. Project finance loans may be non-amortizing 

during the construction period of a project and then amortizing until maturity.

Prepayment

CHIPS Loans may be prepaid at the election of the borrower, subject to prepayment periods, waiting periods, and 

other terms to be agreed upon.

Typical / Expected Terms

G. Financial Information – VI. Loan or Loan Guarantee Request

PDF
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 33

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 33

I. ORGANIZATION INFORMATION

Full Application

I. Organization Information

I. Ownership, Legal Entity, and Org Structure

II. Managerial Capability

III. Consortium Applications

IV. Past Project History Summaries of previous comparable facilities, summary 

financials for each project, and risk and return metrics

V. Intellectual Property Security

VI. Litigation and / or Conflicts

VII. Advisors and Key Partners

I. Organization Information

Web Form

Excel Upload

PDF Upload

Legend
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 34

IV. PAST PROJECT HISTORY

I. Organization Information – IV. Past Project History

PDF

Application Materials

Document Upload, including

• Descriptions of previous comparable 

facilities – Details for each comparable facility 

commissioned by the applicant or parent 

company, such as type of production, years in 

operation, location, etc.

• Summary financials for previous 

comparable facilities

• Risk and return metrics – Including project 

IRR

Applicants should provide realized and projected (at time of 

planning) IRR for comparable prior facilities

Previous comparable facilities refer to similar facilities or 

initiatives (which can include facilities built on previous 

generation technologies). Applicants should submit information 

for comparable facilities occurring in the last 10 years (and are 

encouraged to provide beyond that)

Resources Available

• Commercial Fabrication Facilities NOFO
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 35

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 35

Funding Instruments

KEY THINGS TO REMEMBER – PT. 1

Direct funding

Loan 

guarantees Loans

Alternate (primary) funding sources: 

- Private Investments 

- Investment Tax Credit (26 U.S.C. §

48D)

- State & Local Incentives

CHIPS Incentive Award Expectations

• CHIPS Incentive Awards are expected to supplement existing or potential funding 

from private markets – awards are not meant to be a primary source of funding 

and applicants should consider creative sources

• CHIPS Incentive Awards will be negotiated and tailored to every recipient and may 

include a mix of Direct funding, Loans, and Loan Guarantees

• Loans and Loan Guarantees should be considered as an important tool for 

financing. Applicants that have an existing lender that support loan guarantees 

should proactively name the lender in the application.

• Direct funding awards are generally expected to fund 5-15% of project CapEx

• The total amount of incentive awards is generally expected to not exceed 35% 

of project CapEx (this does not include the ITC)

• Applicants should explain the extent to which the CHIPS Incentives requested will 

incentivize the applicant to make investments in facilities and equipment in the 

United States that would not occur in the absence of the incentives

• Applicants should explain the methodology behind sizing the award and justify 

the reasonableness of their request
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 36

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 36

KEY THINGS TO REMEMBER – PT. 2

General

• Provide detailed information where possible (lacking information 

could cause delays in review)

• Provide what you can if not all information requested is available 

Various Sections

• Provide information about top customers (and if any are 

defense) – specifying current vs. potential customers and usecases

• In Applicant Profile: Include details on Outstanding Debt – if 

unable to provide exact figures due to confidentiality restrictions, 

provide approximate information

• Provide past project history – including realized and projected 

(at time of planning) IRR for comparable prior facilities for at 

least the last 10 years (and beyond if applicable)

Sources and Uses

• Check that information provided on spreadsheet matches 

information provided on web form

• Check that Sources and Uses tie (Total project capital sources 

should equal the project costs)

• Link the summation sheet of the Sources and Uses spreadsheet 

across project sheets

• Indicate the estimated percentage of costs that will be eligible for 

the Investment Tax Credit for each line item on “Schedule A: 

Uses”

• Take the ITC into account on “Schedule B: Sources”

• Complete all applicable Free Response Questions on the 

summation sheet

Financial Model

• Read the “Guiding Principles for Full Application Financial 

Model” whitepaper and check that the financial model adheres to 

those guidelines (and use internal company models so long as 

they adhere to the guidelines)
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 37

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 37

HOW TO SUBMIT A FULL APPLICATION

Earliest submission for

leading edge applicants

March 31, 2023

Earliest submission for

current-generation, mature-node 

or back-end production facilities

June 26, 2023

Earliest submission for

large supply chain projects

October 23, 2023

Submit the full application 

through

applications.chips.gov

After Full Application Submission

The CHIPS Program Office may engage to

✓ Provide automatic confirmation of receipt

✓ Seek further information or clarification

✓ Provide feedback on scope of the proposed 

project and the amount of CHIPS 

Incentives requested 

✓ If applicable, negotiate the preliminary 

terms of a potential award
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 38

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 38

Next Steps and Additional Resources

Next Steps

• Submit a Full Application 

• Visit CHIPS.gov for additional resources

• Join our mailing list

• Contact us: apply@chips.gov – application-related 

inquiries

Full Application Guides and Templates

Instruction Guide

• Full Application Portal and Upload Instructions

Cover Page

• Cover Page Instructions

Financial Model

• Guiding Principles for Full Application Financial Model

Sources and Uses

• Sources and Uses of Funds Instructions

• Full Application Sources and Uses of Funds template

Environmental Review

• Environmental Questionnaire

Workforce Development

• Workforce Development Planning Guide
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 39

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 39

FREQUENTLY ASKED QUESTIONS

What constitutes a "covered incentive" from a 

state and local government?

• The CHIPS Act specifies that an applicant must have been offered a 

covered incentive from a state or local jurisdiction where the project is 

located for the purposes of attracting the construction, expansion, or 

modernization of the facility. 

• Each applicant must provide a letter from a state or local government 

entity to demonstrate they have been offered a qualifying covered 

incentive indicating the estimated size and nature of the incentive.

• A “covered incentive” may take many forms, including a tax incentive, a 

workforce-related incentive, any concession with respect to real property, 

funding for research and development with respect to semiconductors, 

or any other incentive determined appropriate by the CHIPS Program 

Office
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 40

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 40

FREQUENTLY ASKED QUESTIONS – PT. 1

Yes, the CHIPS Program Office will take such investments and/or incentives 

into account. The quality and depth of such commitments will be evaluated per 

the criteria in Section V.A (“Evaluation Criteria”) of the NOFO.

Will the CHIPS Program Office accept workforce 

or community investments and covered 

incentives committed prior to the release of the 

funding opportunity? 

It is the applicant’s responsibility to obtain state and local incentives.

Will the CHIPS Program Office help companies 

obtain state and local incentives?
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 41

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 41

FREQUENTLY ASKED QUESTIONS – PT. 2

All applicants are highly encouraged to provide any credit ratings that are 

available. 

If my company only has a private credit rating, 

should we provide that?

No, the ITC is not included in this expectation. CHIPS Incentive Awards, 

exclusive of the ITC, are generally expected to not exceed 35% of Project 

CapEx.

Is the ITC included when calculating the guidance 

on the total amount of CHIPS Incentive Awards 

(35% of project capital expenditures)?
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 42

N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 42

FREQUENTLY ASKED QUESTIONS – PT. 3

• Realized IRR is a function of market conditions which could differ from the 

conditions at the time of project planning. 

• The CPO is looking to understand the applicant’s target returns at the time 

of project planning. Therefore, we are looking for applicants to provide 

both projected and realized IRRs. 

Why do I need to provide both projected and 

realized IRR for historical projects?
N ational Institute of S tandar ds and Techno l o gy | U .S . Departm e n t of C ommerce 43

Thank You