National Institute of Standards and Technology | U.S. Department of Commerce 1

CHIPS for America

Overview of Financial Information Required 

for Pre-Application and Full Application 

April 13, 2023
National Institute of Standards and Technology | U.S. Department of Commerce 2

Today’s CHIPS Program Office Speakers

Farha Faisal

Investment Office

Investment Director

Jessica Stoneman

External and 

Government Affairs

Public Engagement

Sara O’Rourke

Investment Office

Chief of Staff and Head 

of Operations

Mara Bollenbacher

Investment Office

Investment Director
National Institute of Standards and Technology | U.S. Department of Commerce 3

AGENDA FOR TODAY

• Overview of CHIPS for America – 10 mins

• Overview of Pre-Application and Full Application Financial Information Sections – 10 mins

• Pre-Application Financial Information Deep Dive – 30 mins

− Sources and Uses of Funds

− Summary Financials

− CHIPS Incentives Request

• Full Application Financial Information Deep Dive – 20 mins

− Financial Plan

− Sources and Uses of Funds

− Project Cash Flow, Balance Sheet, and Income Statement Projections

− Scenario Analysis

− CHIPS Incentives Request

• Next Steps, Additional Resources, and Q&A – 20 mins
National Institute of Standards and Technology | U.S. Department of Commerce 4

CHIPS for America Vision

Economic 

Security

Future 

Innovation

National 

Security

The CHIPS Act will 

strengthen supply chain 

security and increase 

economic resilience in critical 

sectors.

The CHIPS Act will spur 

innovation, increase 

competitiveness, and 

ensure long-term U.S. 

leadership in the sector

The CHIPS Act will ensure 

that the U.S. can 

manufacture advanced 

technologies, including 

secure chips for the U.S. 

military.
National Institute of Standards and Technology | U.S. Department of Commerce 5

Funding Opportunities

Late Spring 2023

2nd Notice of Funding 

Opportunity

For material suppliers and 

equipment manufacturers

Fall 2023

3rd Notice of Funding 

Opportunity

To support the construction of 

semiconductor R&D 

facilities 

1st Notice of Funding 

Opportunity

For commercial leadingedge, current, mature node 

fabrication and back-end 

facilities

February 28, 2023

Focus of today’s webinar
National Institute of Standards and Technology | U.S. Department of Commerce 6

Application Process

Statement of interest (open to all)

Pre-application (optional)

Full application

Due diligence

Award preparation

Feedback

Submissions accepted as of...

Leading-edge Current-gen, maturenode, and back-end

February 28, 2023 February 28, 2023

March 31, 2023 May 1, 2023

March 31, 2023 June 26, 2023

Focus for today
National Institute of Standards and Technology | U.S. Department of Commerce 7

Pre-Application & Full Application

Pre-Application Full Application

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

Level of 

Detail

Sufficient preliminary information on the 

proposed project(s) to provide a 

preliminary assessment of the likelihood of 

receiving CHIPS Incentives award and 

meaningful feedback on next steps

Extensive, detailed information on the 

proposed project(s) to enable a 

comprehensive evaluation of its merits and 

determine the potential CHIPS Incentives 

award
National Institute of Standards and Technology | U.S. Department of Commerce 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
National Institute of Standards and Technology | U.S. Department of Commerce 9

National Institute of Standards and Technology | U.S. Department of Commerce 9

Commercial Viability

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
National Institute of Standards and Technology | U.S. Department of Commerce 10

National Institute of Standards and Technology | U.S. Department of Commerce 10

Financial Strength

Financial 

strength of the 

applicant / 

parent

Financial 

strength of the 

project

Commitment of 

private/thirdparty investment

Reasonableness 

/ suitability of 

CHIPS funding 

request
National Institute of Standards and Technology | U.S. Department of Commerce 11

Pre-Application

Cover Page

Project Plan

Financial Information

I. Financial Information Narrative

II. Facility Ownership Structure

III. Sources and Uses of Funds

IV. Company Financials

V. Summary Financials

VI. CHIPS Incentives Request

Environmental Questionnaire

Workforce Development

Full Application

Cover Page

Covered Incentive

Description of Project

Applicant Profile

Alignment with Economic Resilience and National Security 

Objectives

Commercial Strategy

Financial Information

I. Financial Plan

II. Sources and Uses of Funds

III. Project Cash Flow, Balance Sheet, and 

Income Statement Projections

IV. Scenario Analysis

V. CHIPS Incentives Request

VI. CHIPS Loan or Loan Guarantee Request

Project Technical Feasibility

Organization Information

Workforce Development Plan

Broader Impacts

Standard Forms

Financial Information Required

PDF Upload

Excel Upload

Web form

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

Financial Information Resources Available for 

Pre-Application and Full Application

Resource For Reference Required Use

All application stages Commercial Fabrication Facilities Notice of Funding Opportunity 

Pre-Application

Pre-Application Instructions 

Pre-Application Sources and Uses Template 

Pre-Application Example Financial Model 

Pre-Application Example Financial Model White Paper 

Full Application

Full Application Offline Template Sources and Uses 

Sources and Uses of Funds Instructions 

Guiding Principles for Full Application Financial Model 

Full Application Offline Incentives Request 

Incentives Request Instructions 

These resources are available at CHIPS.gov, feel free to download & follow along
National Institute of Standards and Technology | U.S. Department of Commerce 13

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

How will the CHIPS Program Office protect 

confidential business information 

throughout the application process?

• We are instituting robust protocols, technology solutions, and 

organizational practices to keep all data safe, secure, confidential, and 

limited in distribution. Application data will be housed in a secure 

environment, upholding NIST’s FIPS 199 high impact requirements for 

cybersecurity and data protection.

• In general, applicant information will be accessible only to federal 

employees, consultants, and contractors who have a need to know, 

including application reviewers and key investment decision-makers, 

to carry out the government’s responsibilities in connection with the 

CHIPS Incentives Program, or as otherwise required by law. 

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 14

Pre-Application

Financial Information Deep Dive
National Institute of Standards and Technology | U.S. Department of Commerce 15

Pre-Application

Cover Page

Project Plan

Financial Information

I. Financial Information Narrative

II. Facility Ownership Structure

III. Sources and Uses of Funds

IV. Company Financials

V. Summary Financials

VI. CHIPS Incentives Request

Environmental Questionnaire

Workforce Development

Financial Information for Pre-Application

III. Sources and Uses of Funds

Information on project costs, the types of amounts of 

funding that will be used to cover those costs, and 

detailed operating cash flows until project breaks 

even on a cash flow basis

V. Summary Financials

Summary of the financial information, assumptions, 

and inputs underlying financial projections

Pre-Application – Financial Information

VI. CHIPS Incentives Request

Summary of requested dollar amounts for CHIPS 

Direct Funding, how the financial information 

submitted supports program priorities and a 

description on how the sizing was based on 

applicable analyses

PDF Upload Excel Upload Web form

Legend
National Institute of Standards and Technology | U.S. Department of Commerce 16

III. SOURCES AND USES OF FUNDS

Materials Required

Narrative

Descriptive summary of the project costs and 

capital sources

Spreadsheet Template

Estimated 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-Application – Financial Information: Sources and Uses of Funds

Resources Available

• Pre-Application Instructions

• Pre-Application Sources and Uses Template

Deep Dive on the next page

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 17

III. SOURCES AND USES OF FUNDS

Pre-Application Sources and Uses Template

Schedule A – Uses

Schedule B – Funding 

Sources

Schedule C - Operating 

Cash Flows until Project 

breaks even on a Cash 

Flow basis

Pre-Application – Financial Information: Sources and Uses of Funds

The Sources and Uses 

spreadsheet template contains 

multiple sheets:

• Complete a separate “S&U 

sheet” for each project

• Populate the “Summation 

across projects” sheet

Each sheet contains 3 schedules 

The summation sheet 

also contains Free 

Response Questions

A B 

C

A

D

B 

C

A “project” is a set of capital 

expenditures for the construction, 

expansion, or modernization of a 

single facility

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 18

III. SOURCES AND USES OF FUNDS

Pre-Application Sources and Uses Template

Schedule A - Uses 

Schedule 

Estimates for both 

hard/physical asset costs 

and soft/implementation 

costs in the cost estimate

1. Capital Investment

3. Workforce 

development costs

4. Other Uses of 

Funds

Pre-Application – Financial Information: Sources and Uses of Funds

2. Operating losses 

and other cash 

outflows until project 

breaks even on a 

cash flow basis

Components

On both the individual 

projects and summation 

sheet provide uses 

estimates

Schedule A: Project # – Uses Schedule

A

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 19

III. SOURCES AND USES OF FUNDS

Spreadsheet template

Schedule B: Funding 

Sources Schedule 

Estimates for all sources of 

funding that will contribute 

to the project

1. Equity Funding

3. Government 

Support

4. Other Sources of 

Funds

Pre-Application – Financial Information: Sources and Uses of Funds

2. Debt Funding

Components

Schedule B: Project # - Funding Sources Schedule

On both the individual 

projects and summation 

sheet provide sources 

estimates

B

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 20

III. SOURCES AND USES OF FUNDS

Spreadsheet template

Schedule C - Operating 

Cash Flows until Project 

breaks even on a Cash 

Flow basis

Detailed breakdown of 

estimated revenues, 

operating expenses, other 

operating income, other 

cash flow items and 

financing costs & taxes 

until project breaks even 

on a cash flow basis

1. Total sales until projects break even 

on cash flow basis

Pre-Application – Financial Information: Sources and Uses of Funds

2. Total operating expenses until 

projects break even on a cash flow 

basis

Components

5. Total financing costs and taxes 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

Schedule C: Project # - Schedule for Operating Cash Flows until Project breaks even on a Cash Flow basis

On both the individual 

projects and summation 

sheet provide operating 

cash flow estimates

C

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 21

III. SOURCES AND USES OF FUNDS

Spreadsheet template

Summation across 

projects – Free 

Response Questions

Six free response 

questions are included 

to allow the applicant to 

provide commentary

Pre-Application – Financial Information: Sources and Uses of Funds

Questions (abbreviated)

On the summation 

sheet, complete all 

applicable Free 

Response Questions

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.? ....

D

Excel Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 22

V. SUMMARY FINANCIALS

Materials Required

Resources Available

Pre-application Example 

Financial Model

Dynamic, Integrated Spreadsheet

High-level summary of the expected 

revenues, costs, and cash flows for 

each project, including key income 

statement, cash flow statement, and 

balance sheet information

Narrative

Summary narrative and supporting 

evidence for key assumptions 

underlying the financial projections

Pre-Application – Financial Information: Summary Financials

Illustrative example of the 

level of granularity expected 

for the Summary Financials 

integrated spreadsheet

Usage of this specific tool is 

not a requirement for the preapplication submission

The tool may not appropriately 

meet the needs of all projects

See Pre-application Financial Model White Paper for 

additional guidance on how to use the financial model tool

Deep Dive on the next page

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 23

V. SUMMARY FINANCIALS

Example Financial Model

Pre-Application – Financial Information: Summary Financials Financial Information

Worksheet Description

Inputs Control Panel Key project assumptions and inputs – more detail on the next page

Processing Assumptions Processing Processing worksheet that structures the inputs from the control panel to 

produce outputs in the financial statement

Depreciation Schedule Calculates the depreciation of the project’s capital costs and the 

estimates the benefit from the Investment Tax Credit (ITC)

Outputs Income Statement Income, or profit and loss, statement that has been generated using the 

assumptions entered, revenues and operating expenses are shown in 

absolute terms

Cashflow Cash flow statement for the project; debt service coverage analysis, 

showing the project’s ability to pay debt service in each period; and cash 

flow to equity, showing the cashflows for the equity position in the project

Balance Sheet Brings together all the flows, cash and non-cash, to show the 

“accumulation” of each type of asset and liability/equity at the end of 

each period

No inputs are required for the processing 

and outputs worksheets

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 24

Pre-Application – Financial Information: Summary Financials

Continued on the next page...

V. SUMMARY FINANCIALS

Example Financial Model - Inputs, Control Panel

Inputs may not appropriately meet the needs of 

all projects and applicants may want to reflect 

additional complexities in their materials

B. Project Capital Costs

D. Operating Costs

E. Debt Assumptions

A. Overview

C. Project Revenue

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

V. SUMMARY FINANCIALS

Example Financial Model - Inputs, Control Panel

Pre-Application – Financial Information: Summary Financials Inputs may not appropriately meet the needs of 

all projects and applicants may want to reflect 

additional complexities in their materials

F. Project Financing Assumptions

G. Tax Assumptions

H. Depreciation Assumptions

I. Working Capital 

Assumptions

J. Distributions

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 26

VI. CHIPS INCENTIVES REQUEST

Materials Required

Web Form

A summary of the funding request and

available credit ratings

Written Responses

• Narrative description for 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

Pre-Application – Financial Information: CHIPS Incentives Request

Resources Available

• Pre-Application Instructions

Deep Dive on the next page

PDF Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 27

VI. CHIPS INCENTIVES REQUEST

Web Form Instructions

Pre-Application – Financial Information: CHIPS Incentives Request

CHIPS Incentive Request Summary

Indicate the type of incentive requested, 

requested dollar amounts and relevant terms 

associated with the request

Credit Rating Summary

Provide the most recent credit ratings 

applicable to the borrowing entity

and its corporate parent / sponsor

CHIPS Direct Funding Request

CHIPS Loans Request

CHIPS Loan Guarantee Request

Borrowing entity for Project

Corporate Parent / Sponsoring Entity

Credit Rating of Borrowing Entity

Credit Rating of Corporate Parent / 

Sponsoring Entity

PDF Web Form
National Institute of Standards and Technology | U.S. Department of Commerce 28

Full Application

Financial Information Deep Dive
National Institute of Standards and Technology | U.S. Department of Commerce 29

Financial Information for Full Application

III. / IV. Project Cash Flow, Balance Sheet, and Income 

Statement Projections & Scenario Analysis

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, and stressing model 

parameters under a range of scenarios or assumptions 

Full Application – Financial Information

V. CHIPS Incentives Request

Summary and rationale of requested dollar amounts for CHIPS 

Direct Funding, how the financial information submitted supports 

program priorities and a description of specific efforts to date to 

bring other capital

PDF Upload Excel Upload Web form

Legend

I. Financial Plan

Detailed description of project financial plan, including sources 

and uses of funds, cash flow projections, key equity return and 

debt service metrics, CHIPS incentives request, sensitivity 

analyses, and supporting evidence for key assumptions

Full Application

Financial Information

I. Financial Plan

II. Sources and Uses of Funds

III. Project Cash Flow, Balance 

Sheet, and Income Statement 

Projections

IV. Scenario Analysis

V. CHIPS Incentives Request 

VI. CHIPS Loan or Loan Guarantee 

Request
National Institute of Standards and Technology | U.S. Department of Commerce 30

I. FINANCIAL PLAN

Materials Required

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

Full Application – Financial Information: Financial Information Narrative

Resources Available

• Commercial Fabrication Facilities Notice 

of Funding Opportunity

• Guiding Principles for Full Application 

Financial Model 

PDF

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
National Institute of Standards and Technology | U.S. Department of Commerce 31

III. / IV. PROJECT CASH FLOW, BALANCE SHEET, AND INCOME 

STATEMENT PROJECTIONS & SCENARIO ANALYSIS

Materials Required

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

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

Resources Available

• Guiding Principles for Full Application 

Financial Model

Full Application – Financial Information: Project Cash Flow, Balance Sheet, and Income Statement Projections & Scenario analysis

Deep Dive on the next page

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 32

III. / IV. PROJECT CASH FLOW, BALANCE SHEET, AND INCOME 

STATEMENT PROJECTIONS & SCENARIO ANALYSIS

Guiding Principles

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

A

Full Application – Financial Information: Project Cash Flow, Balance Sheet, and Income Statement Projections & Scenario analysis

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 33

III. / IV. PROJECT CASH FLOW, BALANCE SHEET, AND INCOME 

STATEMENT PROJECTIONS & SCENARIO ANALYSIS

Guiding Principles

Granularity

Detailed financial inputs are 

critical for a comprehensive 

review of the project’s 

financial strength

B

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

Submissions that lack sufficient 

granularity may require requests for 

additional information, which could 

cause delays in the review process

Full Application – Financial Information: Project Cash Flow, Balance Sheet, and Income Statement Projections & Scenario analysis

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 34

III. / IV. PROJECT CASH FLOW, BALANCE SHEET, AND INCOME 

STATEMENT PROJECTIONS & SCENARIO ANALYSIS

Guiding Principles

Metrics

Applicants should capture 

key outputs in the form of 

internal rate of return

(IRR), financial performance 

metrics, and risk and debt 

service metrics

C

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

Full Application – Financial Information: Project Cash Flow, Balance Sheet, and Income Statement Projections & Scenario analysis

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 35

III. / IV. PROJECT CASH FLOW, BALANCE SHEET, AND INCOME 

STATEMENT PROJECTIONS & SCENARIO ANALYSIS

Guiding Principles

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

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

Full Application – Financial Information: Project Cash Flow, Balance Sheet, and Income Statement Projections & Scenario analysis

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 36

V. CHIPS INCENTIVES REQUEST

Materials Required

Spreadsheet Template

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

Full Application – Financial Information: CHIPS Incentives Request

Resources Available

• Incentives Request Instructions

• Full Application Offline Incentives Request

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 in 

spreadsheet format as well as a rationale 

for the incentives request and a 

description of specific efforts to bring 

other capital

PDF Excel
National Institute of Standards and Technology | U.S. Department of Commerce 37

Recap: Financial Information

Key Differences

Pre-Application Full Application

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
National Institute of Standards and Technology | U.S. Department of Commerce 38

National Institute of Standards and Technology | U.S. Department of Commerce 38

HOW TO SUBMIT A PRE-APPLICATION

Pre-application is strongly 

recommended for currentgeneration, mature-node, or 

back-end production facilities

Earliest submission for 

leading edge applicants March 

31, 2023

Earliest pre-application 

submission for currentgeneration, mature-node or 

back-end production facilities

May 1, 2023

The pre-application may be submitted a 

minimum of 21 days following the 

submission of a Statement of Interest (SOI)

Submit the pre-application 

through

applications.chips.gov
National Institute of Standards and Technology | U.S. Department of Commerce 39

Next Steps

• Submit a Pre-Application & Full Application - resources 

listed in the next page

• Visit CHIPS.gov for additional resources

• Join our mailing list

• Contact us

• askchips@chips.gov – general inquiries

• apply@chips.gov – application-related inquiries
National Institute of Standards and Technology | U.S. Department of Commerce 40

National Institute of Standards and Technology | U.S. Department of Commerce 40

PRE-APPLICATION & FULL APPLICATION SUBMISSION

RESOURCES AVAILABLE 

FULL APPLICATION RESOURCES

General

• Cover Page Instructions

• Guiding Principles for Full Application Financial 

Model

Incentives Request

• Incentives Request Instructions

• Full Application Offline Incentives Request

Sources and Uses of Funds

• Sources and Uses of Funds Instructions

• Full Application Offline Template Sources and Uses

Environmental Questionnaire

• Environmental Questionnaire

PRE-APPLICATION RESOURCES

General

• Pre-Application Instructions

Sources and Uses of Funds

• Pre-Application Sources and Uses Template

Summary Financials

• Pre-Application Example Financial Model White 

Paper

• Pre-Application Example Financial Model

Environmental Questionnaire

• Pre-Application Environmental Questionnaire
National Institute of Standards and Technology | U.S. Department of Commerce 41

Question and Answers
National Institute of Standards and Technology | U.S. Department of Commerce 42

National Institute of Standards and Technology | U.S. Department of Commerce 42

Are operating expenses able to be covered by incentives? What 

classifies as reasonable direct operating expenses eligible for funding?

CPO incentives may be used to “pay reasonable costs related to the 

operating expenses” for an applicant’s stated project, such as specialized 

workforce, essential materials, and complex equipment maintenance. 

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 43

National Institute of Standards and Technology | U.S. Department of Commerce 43

Is third party financing required as part of the application or just 

encouraged?

Third party financing is not required, but it is preferred. The CHIPS 

Program Office will give preference to projects based on the degree to 

which they have activated significant private capital, whether from 

the applicant and/or from third parties, as a proportion of their total 

project cost. This will increase the scale of investment available and 

ensure that CHIPS funding complements private markets rather than 

crowding them out.

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 44

National Institute of Standards and Technology | U.S. Department of Commerce 44

For the pre application, do we have to use the example financial model 

that the CPO has provided? Or is it OK to use our own model. If we are 

using our own model, is it OK for the model to be structured differently 

than the CHIPS example model?

The use of the example CHIPS financial model tool is not a requirement for 

the CHIPS optional pre-application submission. Any materials submitted that 

fulfill the requirements of the “Summary Financials for the Project” portion of 

the Pre-Application is acceptable. To the extent management models align 

with the guidelines for Financial Statements in the NOFO, we would 

encourage applicants to submit those models. 

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 45

National Institute of Standards and Technology | U.S. Department of Commerce 45

Our company is in the initial stages of determining whether we should 

undertake a new project. We are not at an advanced stage of planning 

yet, so any application we submit would lack granularity. How should we 

proceed?

The CHIPS Program Office anticipates that some potential applicants may be 

in earlier stages of developing the project(s) for which they intend to apply for 

CHIPS Incentives. Pre-applications are particularly useful in this scenario, as 

it enables the CHIPS Program Office to provide meaningful feedback to the 

potential applicant.

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 46

National Institute of Standards and Technology | U.S. Department of Commerce 46

What is the maximum award amount that I can apply for?

There is no set maximum for how much an applicant may request or receive 

in CHIPS Incentives. 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: (1) 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 (2) meet the needs of national security.

Frequently Asked Questions

Can a project receive more than one type of funding?

Yes, a CHIPS award may include a combination of direct funding (i.e., a grant, 

cooperative agreement, or other transaction), loans, and loan guarantees.
National Institute of Standards and Technology | U.S. Department of Commerce 47

National Institute of Standards and Technology | U.S. Department of Commerce 47

For the project revenue in the control panel of the example financial model, 

CPO requires the unit price in first year of production. In the semiconductor 

industry, wafer output from a manufacturing facility is frequently "sold" via 

internal company transfer. Is this the sort of sales information you are 

seeking, or are you trying to link or approximate output to finished product 

sales (which happens downstream, after other processing steps)?

The objective of the financial model is to capture the project's profitability as 

accurately as possible. Therefore, the unit price used to calculate the revenue of the 

wafer output should reflect the value of each individual wafer produced (e.g., the 

finished product sales after netting out any expected costs and related reasonable 

margins from the downstream processes, such as back-end processing). It may align 

with the internal company transfer "price“, however, the applicant should clearly 

rationalize in their narrative why the selected "unit price" is appropriate for use. As a 

reminder, the use of the example CHIPS financial model tool is not a requirement for 

the CHIPS optional pre-application submission. 

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 48

National Institute of Standards and Technology | U.S. Department of Commerce 48

The example financial model asks for grants from state and local incentives 

under the project financing assumptions. Is this for grants only?

For the state and local incentives, this line item is intended to capture awards 

in the form of grants (or grant-like incentives). However, if a project is 

receiving other types of state and local incentives (e.g., tax benefits) those 

should also be reflected in the financial model. These capabilities are not 

currently in the example pre-app model and therefore may require the user 

to make modifications or use their own internal models. As a reminder, the 

use of the example CHIPS financial model tool is not a requirement for the 

CHIPS optional pre-application submission. 

Frequently Asked Questions
National Institute of Standards and Technology | U.S. Department of Commerce 49

Thank you