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

CHIPS for America

Notice of Funding Opportunity Launch

Semiconductor materials and manufacturing equipment facilities

September 29, 2023
National Institute of Standards and Technology | U.S. Department of Commerce 2

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 Notice of Funding Opportunity

• Access additional resources for applicants and stakeholders

• Sign up for email updates

• Register for future webinars
National Institute of Standards and Technology | U.S. Department of Commerce 3

Today's Speakers

Michael Schmidt 

Director of the CHIPS 

Program Office

Adrienne Elrod 

Director of External and 

Government Affairs

Nikita Lalwani

Senior Advisor to the 

Director

Olivia Briffault

Investment Principal
National Institute of Standards and Technology | U.S. Department of Commerce 4

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 

ensure that the U.S. 

can manufacture 

advanced technologies, 

including secure chips 

for the U.S. military.

Future 

Innovation

The CHIPS Act will spur 

innovation, increase 

competitiveness, and 

ensure long-term U.S. 

leadership in the sector.
CHIPS for America Programs

$39 billion for manufacturing

Components:

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

Together with 

CHIPS

initiatives from 

other agencies, 

including DOD, 

State, NSF,

and Treasury

Workforce development
We are moving quickly to progress 

against program goals

CHIPS & Science Act of 2022 

passed into law and signed by 

President Biden

Aug ‘22

CHIPS for America 

launched

A Strategy for the 

CHIPS for America 

Fund released

Sep ‘22

CHIPS Program and R&D 

offices founded

First meeting of Industrial 

Advisory Committee (IAC)

Oct ‘22

Incentives Request for 

Information

Manufacturing USA Request 

for Information

Nov ‘22

National Semiconductor 

Technology Center 

Update to the Community

Dec ‘22

IAC 1st public 

meeting

Jan ‘23 Feb ‘23

IAC 2nd public 

meeting

First Notice of 

Funding 

Opportunity 

released

Mar ‘23

Proposed Rule 

on National 

Security 

Guardrails

Apr ‘23

Vision and Strategy for the 

National Semiconductor 

Technology Center released

May ‘23 Jun ‘23

IAC 3rd public 

meeting

Large Supply 

Chain Projects 

Funding 

Opportunity 

released

Jul ‘23

MOA with 

DOD

Aug ‘23 Sep ‘23

Rule on National 

Security 

Guardrails 

published

Launch of Smaller 

Supply Chain 

Projects Funding 

Opportunity

CHIPS Webinars and Briefings
National Institute of Standards and Technology | U.S. Department of Commerce 7

Funding Opportunities

February 28, 2023

Funding Opportunity 

(Released)

For commercial

leading- edge, current,

and mature node

fabrication facilities

June 23, 2023

Funding Opportunity 

(Released)

For large 

semiconductor 

materials and 

equipment facility 

projects $300M+

Focus of today’s webinar

Funding Opportunity 

(Released)

TODAY

For smaller 

semiconductor 

materials and 

equipment facility 

projects under $300M

Funding Opportunity 

To support the 

construction of 

semiconductor R&D 

facilities

The CHIPS Program Office has received over 500 statements of interest

and 100 pre-applications and full applications
National Institute of Standards and Technology | U.S. Department of Commerce 8

Funding Opportunity Overview

Eligibility

Program Priorities

Funding Instruments

Streamlined Application Process 

Emphasis on Clusters and Consortia

This funding opportunity has been tailored for smaller businesses.
National Institute of Standards and Technology | U.S. Department of Commerce 9

Funding Eligibility

For 

organizations 

that are...

private

non-profit

consortia

that can 

substantially...

finance

construct

expand

modernize

a U.S. facility 

for...

production

assembly

of...

materials used 

to manufacture 

semiconductors

semiconductor 

manufacturing 

equipment

for capital 

investment of...

less than 

$300 million*

*Projects with capital investments below $20 million are unlikely to be funded unless justification shows how it meaningfully contributes to the Program’s 

strategic objectives.
National Institute of Standards and Technology | U.S. Department of Commerce 1 0

Program Priorities

Economic and 

National 

Security 

Objectives

Commercial 

Viability

Financial 

Strength

Technical 

Feasibility 

and 

Readiness

Workforce 

and 

Community 

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

Vision for Success

By the 

end of the 

decade...

 The U.S. and its allies will reduce chokepoint 

risks flowing from geographic concentration

 Supply chain participants will improve the 

transparency of demand and supply to reduce 

the risks of production disruptions

Strengthen Supply Chain Resilience

 The U.S. will have incentivized major U.S. 

equipment and materials suppliers to increase 

their footprints in the U.S.

 Non-U.S. suppliers of the world's most advanced 

equipment, materials, and subsystems will also 

establish large-scale footprints in the U.S.

Advance U.S. Technology Leadership

Support Vibrant U.S. Fab Clusters

 Each CHIPS-funded fab cluster in the U.S. will be 

supported by dozens of suppliers, including

many investing in the U.S. for the first time

 State and local entities encouraged to help

facilitate the expansion of these ecosystems
Funding & 

Application Process
National Institute of Standards and Technology | U.S. Department of Commerce 1 3

Funding

Funding Instruments Total Funding Funding by Project

Up to $500 

million in direct 

funding 

available in total

Direct funding

expected to be 10% 

of project capital

expenditures*

Direct 

Funding

Additional 

announcements 

forthcoming to 

support credit 

provision

CPO is also exploring other opportunities 

to provide credit

Launch a “lender marketplace” to connect 

loan-seekers with private sector institutions

*In rare cases, applicants may receive an award of either 20% or 30% with demonstrating a compelling case for the project and that additional funding is necessary. Projects eligible 

for the Advanced Manufacturing Investment Credit will not receive an award of more than 20%.
National Institute of Standards and Technology | U.S. Department of Commerce 1 4

Application Process

Tailored Phases Submission Dates

1 Concept Plan Accepted between December 1, 

2023, and February 1, 2024.

2 Full Application For applications invited to the 

full application phase, the 

program will communicate 

submission dates individually 

upon notifying them of their 

advancement. a

3 Due diligence Due Diligence

Award Preparation

and Issuance 4

Unlike previous funding opportunities, no statement of interest (SOI) is required under this NOFO
National Institute of Standards and Technology | U.S. Department of Commerce 1 5

1 Concept Plan

Purpose

Describe how the proposed project 

addresses the core program priorities. 

Will be used by the Department to 

score applicants and invite those 

most likely to receive an award to 

advance to the full application phase.

What is needed?

• Applicant information

• Project plan of no more than 15 

pages

• Consortium narrative (if applicable)

Required for all 

applicants

Accepted between 

December 1, 2023, and

February 1, 2024

Submit through 

https://applications.chips.gov
National Institute of Standards and Technology | U.S. Department of Commerce 1 6

1 Concept Plan Evaluation Criteria

The extent to which a project advances U.S. economic 

and national security

Project’s long-term commercial viability, including robust 

customer demand for the proposed project output

CHIPS Incentives justification

Likelihood that applicant will successfully execute the 

project, including construction and environmental review

Availability of non-CHIPS funding sources
National Institute of Standards and Technology | U.S. Department of Commerce 1 7

2 Full Application

Purpose

Submit a full application to be officially 

considered for a CHIPS Incentive 

Award.

What is needed?

Detailed information on the proposed 

project to enable evaluation of its 

merits, including the workforce and 

community investment plan.

Selected applicants 

will be invited to apply

For applicants invited 

to the full application 

phase, the program will 

communicate 

submission dates 

individually upon 

notifying them of their 

advancement. 
National Institute of Standards and Technology | U.S. Department of Commerce 1 8

2 Full Application

In the full application, applicants will be asked to submit a Workforce 

and Community Investment Plan containing:

• Workforce needs assessment

• Recruitment, retention, and training 

approach

• Job quality approach in line with 

Good Jobs Principles

• Engagement with strategic partners 

strongly encouraged

• Project Labor Agreements strongly 

encouraged

• Access to child care encouraged

Construction and Facility 

Workforce Strategy

• Work closely with stakeholders in 

local communities to be responsive 

to local needs

• Proactive steps encouraged to 

ensure that small, minority-owned, 

veteran-owned, and women-owned 

businesses are included in the 

overall project

Community Investment 

Strategy

Consortium members may collaborate on this plan.
Consortia
Defining Consortia and Clusters

Consortium

A collection of... 

 Private

 Non-profit

and/or

 Public

...entities working together to build 

vibrant U.S. semiconductor fab 

clusters.

Cluster

A geographically compact 

area with...

Multiple commercial 

scale fabs owned and 

operated by one or 

more companies

A large, diverse, and 

skilled workforce

Nearby suppliers to 

the semiconductor 

industry

R&D facilities Utilities

Specialized infrastructure, 

such as chemical processing 

and water treatment facilities
National Institute of Standards and Technology | U.S. Department of Commerce 2 1

Consortium Applications

 At least 2 suppliers

 A state or local 

government entity

 An anchor institution

 May also contain 

workforce training 

providers, labor unions, 

econ dev corps, higher 

ed, and more

 Does not require an 

umbrella organization or 

formal legal structure 

What does a 

strong consortium 

look like?

Who applies?

In coordination and 

alignment with other 

members, each member 

seeking funds will submit:

1. Concept Plan 

(requires Consortium 

Narrative)

2. Full Application (if 

invited)

Is a consortium 

required?

• A consortium is not

required to submit an 

application 

• Consortia strongly 

encouraged for 

applicants claiming to 

benefit U.S. clusters

• Consortia welcome for 

applicants claiming to 

support other two 

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

Why apply as part of a consortium?

Application Advantages

Covered Incentive

Satisfied by one letter that offers incentive to all eligible 

facilities in the consortium.

Worker and Community Investment

May collaborate to achieve economies of scale.

Members decide how much funding and/or other 

resources each contributes to overall commitments.

Workforce Training Commitments

May work together to secure required commitments 

from educational and training entities.

Workforce Strategy

Members may develop one strategy at the consortium 

level covering each consortium member.

Benefits

 We generally expect applicants applying as 

part of consortia to be better positioned to 

meaningfully contribute to the development or 

sustainability of a cluster.

 Applicants can work together to satisfy 

requirements

 Achieve greater economies of scale, efficiency, 

and effectiveness

 Take advantage of the shared skills and 

resources
National Institute of Standards and Technology | U.S. Department of Commerce 2 3

Consortium Example

Labor Union Workforce 

Provider

Economic 

Development 

Corporation

Semiconductor 

Fab

State or Local 

Government

Supplier 

Facility

Higher 

Education 

Institution 

Possible 

Consortia 

Participants

• Land

• Shared Utilities and 

Infrastructure

• Streamlined Permitting

• Incentives for Suppliers

Example: Science Park
National Institute of Standards and Technology | U.S. Department of Commerce 2 4

Second Funding Opportunity Summary

Smaller Supply Chain Projects | tailored towards smaller projects and businesses...

 Semiconductor Materials Facilities

 Semiconductor Manufacturing 

Equipment Facilities

Capital expenditures below $300 million

Eligibility

Direct Funding

 Grants

 Cooperative Agreements

 Other Transactions

Funding Instruments

1. Concept Plan

2. Full Application

3. Due Diligence

4. Award Preparation and Issuance

Streamlined Application Process

Concept Plan Submissions

 Dec 1, 2023 – Feb 1, 2024

Full Application Submissions

 Communicated individually upon 

notice of application advancement

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

Resources
National Institute of Standards and Technology | U.S. Department of Commerce 2 6

NEXT STEPS

• Visit CHIPS.gov for resources, including:

• Notice of Funding Opportunity

• Vision for Success paper

• Applicant guides and templates

• FAQs and fact sheet

• Webinar schedule (and recordings of prior webinars)

• Teaming Partner List 

• Join our mailing list 

• Contact us

• askchips@chips.gov – general inquiries

• apply@chips.gov – application-related inquiries
Question and Answers
National Institute of Standards and Technology | U.S. Department of Commerce 2 8

Frequently Asked Questions

There’s no fab in my area. Can I still make the case that I am 

advancing a U.S. fab cluster?

Yes. The Department is interested in projects that advance clusters by 

closing critical gaps in the U.S. supplier landscape. Often, projects will 

accomplish this goal by locating near fabs to reduce the burdens 

associated with transporting critical supply chain inputs. But that is not a 

requirement, and the Department welcomes projects that support clusters 

in other ways, including by providing critical materials or equipment to fabs 

in multiple areas.
National Institute of Standards and Technology | U.S. Department of Commerce 2 9

Frequently Asked Questions

How do I apply as part of a consortium?

Each member of a consortium seeking funding for a project eligible for CHIPS 

Incentives must submit their own separate concept plan and application. As part of 

the concept plan and application, consortium applicants will be asked to submit a 

“consortium narrative” detailing other members of the consortium and setting forth 

the overall strategic vision of the consortium, among other relevant information. 

Applicants that are part of the same consortium should submit the same 

information in their consortium narrative. Funding will be awarded on a per-project 

basis to consortium members proposing to construct, expand, or modernize a 

facility eligible under the second NOFO. For more information, see Sections I.B.4 

(“May applicants apply for funding under this NOFO as part of a consortium, and if 

so, how?”) and IV.G.2 and IV.H.2 (“Consortium Narrative”) of NOFO 2.
National Institute of Standards and Technology | U.S. Department of Commerce 3 0

Frequently Asked Questions

Will the consortium receive funding as a whole?

Funding will be awarded on a per-project basis to consortium members 

proposing to construct, expand, or modernize a facility eligible under 

NOFO 2. Eligible uses of funds include costs to...

• finance the construction, expansion, or modernization of a facility, or 

equipment for that facility

• support site development and modernization for a facility

• support workforce development for a facility

• pay reasonable operating expenses for a facility, as determined by the 

Department.
National Institute of Standards and Technology | U.S. Department of Commerce 3 1

Frequently Asked Questions

What should state and local governments do if they want to 

form or support a consortium application?

State or local government entities that join consortia are strongly encouraged to 

take steps to build and support vibrant semiconductor clusters. Such steps might 

include investments in workforce, education, site preparation, research and 

development, or infrastructure (including transportation, housing, water, or energy) 

designed to benefit both the consortia members and the broader community. State 

and local government entities in consortia are also strongly encouraged to help 

streamline access to resources critical to cluster growth, such as permitting and 

expansion services, and coordination with relevant regulatory authorities. For 

consortia that include a state and/or local government entity, the “consortium 

narrative” should list any actions that entity is taking or intends to take to facilitate 

cluster development.
National Institute of Standards and Technology | U.S. Department of Commerce 3 2

Frequently Asked Questions

The Department expects that strong consortia will include an 

anchor institution such as a semiconductor fab. What are other 

examples of anchor institutions?

In addition to semiconductor fabs, anchor institutions could include large 

suppliers, universities, and/or advanced packaging facilities. In addition to 

anchor institutions, strong consortia will also include at least two suppliers 

and a state or local government entity and may include entities such as 

workforce training providers, labor unions, economic development 

corporations, institutions of higher education, philanthropic foundations, 

industry organizations, Tech Hubs, or other relevant entities.
National Institute of Standards and Technology | U.S. Department of Commerce 3 3

Frequently Asked Questions

Are there downsides to requesting an award of more than 10 

percent of project capital expenditures?

If an applicant requests more than 10 percent in CHIPS Direct Funding, 

the Department expects that it may take substantially longer to evaluate 

the full application and prepare an award. In addition, the applicant will 

need to make a particularly compelling case that their project advances 

the Department’s economic and national security objectives and that 

additional funding is necessary to make the project commercially viable.
Thank You