National Institute of Standards and Technology | U.S. Department of Commerce 2

CHIPS for America 

Incentive Program

Presented by Donna Dubinsky, Sreenivas Ramaswamy and Jason Boehm

September 2022
National Institute of Standards and Technology | U.S. Department of Commerce 3

WELCOME

• We look forward to your questions. Click the Q&A button, 

type your question, and click “Post Question” to submit.

• We will answer as many questions as possible today. 

• Visit CHIPS.gov 

• Get the strategy paper 

• Sign up for email updates
National Institute of Standards and Technology | U.S. Department of Commerce 4

Donna Dubinsky

Senior Counselor to the Secretary 

for CHIPS Implementation

CHIPS for America Vision
National Institute of Standards and Technology | U.S. Department of Commerce 5

Chips are the 

foundation of the 

modern world
National Institute of Standards and Technology | U.S. Department of Commerce 6

Chips were invented in America

But most chips are made outside of the U.S.

Logic chip production by country, 2021 Memory chip production by country, 2021
National Institute of Standards and Technology | U.S. Department of Commerce 7

CHIPS for America Vision

Economic 

Security

This act enables us to build 

more resilient supply chains 

for important components.

National 

Security

This act enables us to bring 

the most sophisticated 

technologies back to the 

U.S.

Future 

Innovation

Chips are key to the 

technologies and industries 

of the future, so we need to 

be at the forefront. This act 

will ensure long-term U.S. 

leadership in the sector.
National Institute of Standards and Technology | U.S. Department of Commerce 8

Sreenivas Ramaswamy

Senior Advisor to the Secretary of Commerce

CHIPS for America Overview
National Institute of Standards and Technology | U.S. Department of Commerce 9

CHIPS for America will:

Return leadingedge chip 

manufacturing to 

U.S.

Expand capacity to 

make 

current/mature 

chips and critical 

supplies

Reinforce U.S. 

strengths in chip 

design and 

equipment

Grow a U.S. 

workforce and 

strengthen 

communities

Create a domestic semiconductor ecosystem for national and economic security
National Institute of Standards and Technology | U.S. Department of Commerce 10

Guiding Principles

Meet economic and national security needs

Ensure long-term leadership in the sector

Strengthen and expand regional clusters

Catalyze private sector investment

Generate benefits for a range of stakeholders and communities

Protect taxpayer dollars
National Institute of Standards and Technology | U.S. Department of Commerce 11

CHIPS for America Incentives

$39 billion for manufacturing

Two component programs:

1. Attract largescale investments in 

advanced technologies 

such as leading-edge logic 

and memory

2. Incentivize expansion 

of manufacturing capacity 

for mature and other types 

of semiconductors

$11 billion for R&D

• National Semiconductor 

Technology Center

• National Advanced 

Packaging Manufacturing 

Program

• Manufacturing USA 

institute(s)

• National Institute of 

Standards and Technology 

measurement science

Workforce development

Together with 

CHIPS 

initiatives from 

other agencies, 

including DOD, 

State, NSF, 

and Treasury
National Institute of Standards and Technology | U.S. Department of Commerce 12

LARGE-SCALE INVESTMENTS IN 

LEADING-EDGE LOGIC AND MEMORY 

MANUFACTURING CLUSTERS

Projects could include: 

• Construction or expansion of manufacturing facilities to 

fabricate, package, assemble and test leading edge logic and 

memory chips

• Multiple high-cost, production lines and associated supplier 

ecosystems
National Institute of Standards and Technology | U.S. Department of Commerce 13

EXPANDING MANUFACTURING 

CAPACITY FOR MATURE AND 

CURRENT-GENERATION CHIPS, NEW 

AND SPECIALTY TECHNOLOGIES, 

AND FOR SUPPLIERS TO THE 

INDUSTRY

Projects could include: 

• Construction or expansion of facilities for the fabrication, 

packaging assembly and testing of mature and currentgeneration semiconductors

• Facilities to produce new or specialty technologies

• Facilities that manufacture equipment and materials

• Equipment upgrades 
National Institute of Standards and Technology | U.S. Department of Commerce 14

Jason Boehm

Chief of Staff

National Institute of Standards and Technology

CHIPS for America Overview

R&D
National Institute of Standards and Technology | U.S. Department of Commerce 15

Research & Development

• Strengthen and advance 

U.S. leadership in R&D

• An integrated ecosystem 

that drives innovation

• In partnership with industry, 

academia, government, and 

allies

• A strategic view of R&D 

infrastructure, participant 

value-proposition, and 

technology focus areas

• Informed by the Industrial 

Advisory Committee 

National 

Semiconductor 

Technology Center

National Advanced 

Packaging 

Manufacturing 

Program

Manufacturing USA 

institutes 

(up to three)

Metrology R&D 

(NIST)

Members announced today!
National Institute of Standards and Technology | U.S. Department of Commerce 16

Sreenivas Ramaswamy

Senior Advisor to the Secretary of Commerce

CHIPS Incentives Program Implementation: 

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

Summer 

2022

Fall 

2022

Winter 

2023

Spring 

2023

Summer 

2023

Fall 

2023

Winter 

2024

CHIPS & Science Act of 

2022 passed into law and 

signed by President Biden

CHIPS for America is 

launched with EO on the 

implementation of CHIPS 

and Science Act of 2022

A Strategy for the CHIPS 

for America Fund released

CHIPS Program Office 

(CPO) and CHIPS R&D 

Office are founded, senior 

leadership announced

CHIPS webinars and briefings

IAC members 

announced

Funding application process 

released; Rolling 

applications begin

Timeline

We’re just 

getting 

started... 

*Timeline is tentative

Review, Due Diligence & Funding
National Institute of Standards and Technology | U.S. Department of Commerce 18

Eligibility Criteria

For organizations 

that are...

private

non-profit

consortia

that can 

substantially...

finance

construct

expand

modernize

a U.S. facility for... 

fabrication

assembly

testing

packaging

production

R&D

of...

semiconductors

materials

manufacturing 

equipment

*More details will be released in the funding application document 
National Institute of Standards and Technology | U.S. Department of Commerce 19

Guidance for Incentive Applicants

Increase scale 

and attract 

private capital

Leverage 

collaborations to 

build out 

ecosystems

Secure additional 

incentives and 

support to build 

clusters

Establish a 

secure and 

resilient supply 

chain 

Expand the 

workforce 

pipeline

Create inclusive 

opportunities for 

businesses and 

communities

HOW DO YOU GET STARTED?
National Institute of Standards and Technology | U.S. Department of Commerce 20

INCREASE SCALE AND ATTRACT CAPITAL

What should you do next? 

• Consider if you can 

broaden the scale of 

previously 

contemplated projects

• Don’t wait, find other 

investors now

• Economies of scale matter; large fabs are more 

competitive, more attractive for suppliers to co-locate

• Minimum federal investment required to attract significant 

private capital 

• CPO will use loans and loan guarantees to leverage the 

impact of government grants to leverage funding, and 

extend CHIPS benefits to a wider set of small 

manufacturers 
National Institute of Standards and Technology | U.S. Department of Commerce 21

LEVERAGE COLLABORATIONS TO BUILD OUT 

ECOSYSTEMS

What should you do next? 

• Go to suppliers now and 

build a consortium

• Go to customers now and 

build a consortium • Purchase commitments and other initiatives to improve demand 

transparency

• Collaboration between investors, customers, designers, and 

suppliers is encouraged and will ensure investments match up with 

future market demand

• Manufacturing incentives will principally support fabs, but fabless 

companies will benefit substantially and projects that enable 

fabless design tools and IP, are flexible, and have better portability 

are encouraged
National Institute of Standards and Technology | U.S. Department of Commerce 22

SECURE ADDITIONAL INCENTIVES AND 

SUPPORT TO BUILD CLUSTERS

• The 2021 NDAA requires that applicants demonstrate they have 

secured incentives from state or local government

• Encouraged projects:

• include state and local incentive packages with the potential for 

large spill-over benefits, 

• are based on performance 

• boost regional and local economies gains and semiconductor 

ecosystems rather than just a single company

• Encouraged proposals are ones that move quickly, reduce project 

risk, demonstrate ample local support/regional cooperation, and 

provide broad based benefits

What should you do next? 

• Talk to states and 

localities about their 

interest in supporting your 

project

• Seek out long-term state 

& local tax credits that 

can ensure continued 

investment in upgrading 

and expanding facilities
National Institute of Standards and Technology | U.S. Department of Commerce 23

ESTABLISH A SECURE AND RESILIENT 

SEMICONDUCTOR SUPPLY CHAIN

What should you do next? 

• Plan for your project to 

have a robust 

information and data 

security posture

• Begin upgrading your 

systems

• We expect to prioritize projects that adhere to standards and 

guidelines on information security, data tracking and verification, 

and that collaborate on further development and adoption of such 

standards 

• We expect to prioritize investments that address supply chain risks 

including, 

• poor demand visibility

• single sourcing and geographic chokepoints

• transport and logistical bottlenecks

• weather-related disruptions 

• counterfeiting and tampering

• IP theft

• cybersecurity vulnerability 
National Institute of Standards and Technology | U.S. Department of Commerce 24

EXPAND THE WORKFORCE PIPELINE TO 

MATCH INCREASED DOMESTIC CAPACITY 

WORKFORCE NEEDS

• We expect to prioritize projects that include effective and 

creative workforce development solutions

• Programs should be inclusive of populations that have 

traditionally been underrepresented in the industry 

• Encouraged programs:

• paid training and experiential apprenticeship programs

• industry to hire based on skills, not just degrees

• wrap around services

• connect trainees to jobs 

• exceeding the local prevailing wage including basic 

benefits and/or are unionized

What should you do next? 

• Plan to develop or 

scale workforce 

programs now

• Find proven training 

partners like unions, 

community colleges, 

and more

• Begin to update or 

rethink your hiring 

practices
National Institute of Standards and Technology | U.S. Department of Commerce 25

CREATE INCLUSIVE AND BROADLY SHARED 

OPPORTUNITIES FOR BUSINESSES

• Investments should result in measurable benefits to small 

and underrepresented businesses, including; 

• Minority-owned

• Veteran-owned

• Women-owned

• Rural

• We expect to prioritize projects that proactively work to 

ensure that such businesses are included

What should you do next? 

• Don’t wait for the 

application, begin 

outreach now

• Connect with 

organizations that can 

assist this effort, like 

the Minority Business 

Development Agency
National Institute of Standards and Technology | U.S. Department of Commerce 26

Accountability

Projects must be economically viable and compatible with strategy

Beneficiaries must meet performance, reporting, audit, and oversight requirements

Beneficiaries may not send funded technology abroad or engage with countries of concern

Workers on funded construction projects to earn prevailing wages

Priority to programs that engage a diversity of participants

Public funds cannot be used for stock buybacks or dividend payments

Funds to be returned if taxpayer funds are misused
National Institute of Standards and Technology | U.S. Department of Commerce 27

Next Steps

• Funding application process

• Will be announced in February 2023

(6 months from enactment)

• Proposals considered on a rolling basis

• Learn more

• Visit CHIPS.gov

• Read the Implementation Strategy

• Join our mailing list
National Institute of Standards and Technology | U.S. Department of Commerce 28

Question and Answers
National Institute of Standards and Technology | U.S. Department of Commerce 29

How to ask a question
National Institute of Standards and Technology | U.S. Department of Commerce 30

Click the Q&A button, type out your question, and click “Post Question”. 

How to submit your question
National Institute of Standards and Technology | U.S. Department of Commerce 31

Thank you for attending