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 

Cities and Counties

Presented by Sreenivas Ramaswamy, Molly Ritner and Jason Boehm

October 2022
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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
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Hon. Denise Winfrey

Board Member, Will County, IL 

President

National Association of Counties

Mayor Victoria Woodards

Mayor of Tacoma, WA 

1st Vice President

National League of Cities

Mayor Andrew Ginther 

Mayor of Columbus, OH

Second Vice President

U.S. Conference of Mayors
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Molly Ritner

Director of External Affairs, 

CHIPS Program Office

CHIPS for America Vision
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Chips are the 

foundation of the 

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

Logic chip production by country, 2021 Memory chip production by country, 2021

Chips were invented in America
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Supply chain 

disruptions 

halt U.S. 

commerce

• Pandemic, storms and fires paused chip 

production

• Workers were furloughed

• Prices increased

• Demand outstripped supply

• Geopolitical tensions over Taiwan present 

even greater supply chain risks going forward
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The CHIPS and 

Science Act 

of 2022 
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CHIPS for America Vision

Economic 

Security

Future 

Innovation

National 

Security

This act enables us to build 

more resilient supply chains 

for important components.

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.

This act enables us to bring 

the most sophisticated 

technologies back to the 

U.S.
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Sreenivas Ramaswamy

Senior Advisor to the Secretary of Commerce

Implementation:

CHIPS for America Fund 

Strategy Paper
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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
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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
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• Long-term competitiveness requires large economies of scale 

and investments across the supply chain. 

• Regional clusters containing manufacturing facilities, suppliers, 

basic and translational research, and workforce programs, along 

with supporting infrastructure, will be the foundation for a 

competitive industry. 

• The CHIPS program will facilitate the expansion, creation, and 

coordination of semiconductor manufacturing and innovation 

clusters that benefit many companies.

Strengthen and expand regional manufacturing 

and innovation clusters
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Together with 

CHIPS 

initiatives from 

other agencies, 

including DOD, 

State, NSF, 

and Treasury

CHIPS for America Incentives

$39 billion for manufacturing

• Incentivize expansion of 

manufacturing capacity for 

semiconductors

• Attract large-scale 

investments in advanced 

technologies such as leadingedge logic and memory

• Advance U.S. technical 

leadership

• NDAA Section 9902

$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

• NDAA Section 9906

Workforce development
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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 in large-scale clusters
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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

• Facility upgrades 
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Jason Boehm

Chief of Staff

National Institute of Standards and Technology

CHIPS for America Overview

R&D
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Research & Development

National 

Semiconductor 

Technology Center

National Advanced 

Packaging 

Manufacturing 

Program

Manufacturing USA 

institutes 

(up to three)

Metrology R&D 

(NIST)

• 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 

Members Announced!
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CHIPS Incentives Program 

Implementation: How to Get Started

Sreenivas Ramaswamy
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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

Funding Application 

Process Released; Rolling 

Applications Begin

Timeline

We’re Just 

Getting 

Started... 

IAC Members 

Announced

Review, Due Diligence & Funding

*Timeline is tentative
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Eligibility for Manufacturing Incentives

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
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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
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The CHIPS for 

America statute 

requires that 

applicants 

demonstrate they 

have secured 

incentives from state 

or local government

Those Incentives Can Take Multiple 

Forms And Can Include:

Workforce-related incentives 

Concessions with respect to 

real property

Funding For R&D
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POTENTIAL STATE AND LOCAL 

INCENTIVES

• Investments in industrial infrastructure that specifically 

support the proposed project, but that also could support 

broader development of a supplier ecosystem such as shared 

utility, logistics, and production capacity. 

• Workforce investment to ensure broad talent pipelines. 

• Long-term tax credits to ensure that firms continually invest 

in upgrading and expanding facilities to maintain 

competitiveness.

Things for YOU to consider:

• state and local incentive 

packages are encouraged to 

create the potential for large 

spill-over benefits

• projects are encouraged boost 

regional and local economies 

gains and semiconductor 

ecosystems rather than just a 

single company

• Incentives are encouraged 

to be performance based
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Things for YOU to consider:

• Incentives or actions that can 

help projects move quickly

• Incentives or actions that 

project reduce risk

• Incentives or actions that 

promote regional 

cooperation—e.g., through 

expedited processes, singlewindow liaisons, and project 

integration

• Permitting: Expedited processes for environmental, health, and safety reviews and 

permits.

• Liaisons: point of contact to assist with site selection, supplier discovery, and 

compliance with local laws.

• Integration: A systems integrator that works with ecosystem companies to address 

shared issues like navigating permits, building infrastructure, finding workers, and 

coordinating incentive applications.

• Cooperation: Planning and support for other ancillary investments such as housing 

and community development.

• Collaboration: Where relevant, partnership with other states and localities to 

develop regional ecosystems and corridors that encompass multiple jurisdictions.

STATE AND LOCALITIES COULD SHOW 

THIS COMMITMENT IN VARIOUS WAYS
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Workforce Development

• Scientists and engineers in 

many fields

• Specialty construction 

workers:

• Cleanroom architects

• High-purity welders

• Pipefitters

• Equipment technicians:

• Installation and tooling

• Maintenance

• Operations

• Innovators

Workforce programs 

included in applications 

for manufacturing 

incentives

NSTC will establish 

programs in partnership 

with industry and 

educational institutions
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Economic Development

• Extending access to paid training and jobs to 

underserved and underrepresented populations

• Working with unions and workforce development 

organizations to create training and hands-on learning

• Widespread and long-term spillover benefits to the 

local community and regional ecosystem

• Significant industrial infrastructure (such as 

upgraded power grids, gas lines, and water treatment 

facilities) and other local infrastructure needs, such as 

housing and community amenities

• Measurable benefits to small businesses and startups, 

including those from disadvantaged backgrounds and 

regions

Applicants for CHIPS for America 

incentives should consider:
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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 to 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
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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
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Question and Answers
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