National Institute of Standards and Technolog y | U.S. Departme nt of Commerce 1

March 8, 2023

CHIPS for America

SIA Membership Briefing
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Michael Schmidt

Director of the CHIPS 

Program Office

Morgan Dwyer

Chief Strategy Officer

Todd Fisher

Chief Investment Officer

Today’s CHIPS Program Office Speakers
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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.

CHIPS for America Vision
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Late Spring 2023

2

nd Notice of Funding 

Opportunity

For material suppliers and 

equipment manufacturers

Fall 2023

3

rd Notice of Funding 

Opportunity

To support the construction of 

semiconductor R&D 

facilities 

1

st Notice of Funding 

Opportunity

For commercial leadingedge, current, and mature 

node fabrication facilities

February 28, 2023

Focus of today’s webinar

Funding Opportunities

Submission of Statements of Interest for all funding opportunities encouraged
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✓ The U.S. will have at least two new large-scale 

clusters of leading-edge logic fabs

✓ U.S.-based engineers will develop the process 

technologies underlying the next gen of logic 

chips

Leading-Edge Logic

✓ U.S.-based fabs will produce high-volume 

memory chips on economically competitive 

terms

✓ R&D for next-generation memory technologies 

critical to supercomputing and other advanced 

computing applications will be conducted in the 

U.S.

Memory

✓ The U.S. will be home to multiple high-volume 

advanced packaging facilities

✓ The U.S. will be a global leader in commercialscale advanced packaging technology

Advanced Packaging

✓ The U.S. will have strategically increased its 

production capacity for current-gen and mature 

chips

✓ Chipmakers will also be able to respond more 

nimbly to supply and demand shocks

Current-Generation and Mature

By the 

end of the 

decade... 

Vision for Success
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Catalyzing private investment

Protecting taxpayer dollars

Building a skilled and diverse 

workforce

Engaging with U.S. partners 

and allies

Driving economic opportunity 

and inclusive economic growth

ACCOMPLISHING 

THESE 

OBJECTIVES 

REQUIRES:
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For organizations 

that are...

private

non-profit

consortia

that can 

substantially...

construct

expand

modernize

a U.S. facility for... 

fabrication

assembly

testing

packaging

production

of...

semiconductors

*More details available in the funding opportunity announcement 

Funding Eligibility
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PROJECTS THAT HAVE BEEN 

ANNOUNCED OR ARE UNDER 

CONSTRUCTION

• Funding must incentivize the applicant to make investments 

in facilities and equipment in the U.S. that would not occur 

in the absence of CHIPS incentives

• Relevant applicants must demonstrate that... 

• CHIPS Incentives requested will enable the applicant 

to meaningfully enhance the size, scope, speed, 

or technical ambition of the overall application

OR

• This project would not occur without CHIPS funding
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• Fabless companies play a critically important role in 

the success of the CHIPS program:

• Can engage or partner with potential applicants

• Support commercial viability of potential projects

• Generate demand for domestic semiconductor 

industry

• Beneficiaries of expanded domestic chip production

• Fabless companies not seeking to construct, expand, or 

modernize an eligible facility are not eligible for this NOFO, 

but there will be funding in the third NOFO for R&D 

facilities

FABLESS COMPANIES
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Economic 

and national 

security 

objectives

Commercial 

viability

Financial 

strength

Technical 

feasibility 

and 

readiness

Workforce 

development Broader

impacts

Program Priorities
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Economic Security

SEEKING PROJECTS THAT

• Increase U.S. semiconductor production and align with U.S. strategic needs

• Create a more resilient semiconductor supply chain

• Build foundry or other capacity to serve many different customers

• Attract supplier, workforce, and other investments 

• Contribute to a self-sustaining ecosystem and catalyze future upgrades

Leading-edge

• Use the most advanced tech 

and produce products that 

are most critical to 

enhancing U.S. 

competitiveness

• Commit to ongoing 

investment in U.S.

Current-generation and 

mature-node

• Support production of chips 

vital to automobiles, 

aerospace and defense, and 

other critical infrastructure

• Use processes that convert 

to make other types of chips 

in times of disruption

Back-end production

• Advanced packaging
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National Security

SEEKING PROJECTS THAT

Produce semiconductors that are relied upon by the Department of Defense, other government systems, or 

by critical infrastructure 

Support U.S. government national security needs, such as by providing U.S. government access to facility 

output, or adapting commercial production for low-volume and high-mix national security components

Mitigate operational and cybersecurity risks

Strengthen supply chain resilience by analyzing and managing risks to their own supply chains

Ensure that foreign entities of concern will not pose undue risks 

Produce mature-node semiconductors that are then supplied to critical manufacturing industries
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3/19/2023 13

• We plan to release a notice of proposed rulemaking 

implementing the guardrails in March 

• Funds may not be provided to a foreign entity of concern

• Recipients will be required to agree to restrict their ability to 

expand semiconductor manufacturing capacity in foreign 

countries of concern for ten years

• Recipients must not knowingly engage in any joint research 

or technology licensing effort with a foreign entity of concern 

that involves sensitive technologies or products

• Failure by CHIPS incentives recipients to comply with these 

restrictions may result in recovery of the full amount of 

funding 

Guardrails
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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
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Financial Strength

Financial 

strength of the 

applicant / 

parent

Financial 

strength of the 

project

Commitment of 

private/thirdparty investment

Reasonableness 

/ suitability of 

CHIPS funding 

request
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• Eligibility Requirement:

• Applicants must be offered a state or local 

government incentive in the jurisdiction where 

the facility will be built, modernized, or expanded

• Letter from state or local government entity is 

required

• Incentives that create spillover benefits encouraged

• CPO will be providing resources to state and local 

governments

• Tax incentive

• Workforce-related 

incentive

• Concession with 

respect to real 

property

• Funding for R&D

A “covered incentive” 

includes... 

STATE & LOCAL INCENTIVES
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Technical Feasibility and Readiness

Organizational 

readiness

Technology and 

manufacturing 

processes

Construction 

plan

Environmental 

risk
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Submit an environmental 

questionnaire with pre-app or app

CHIPS environmental review team 

will use the environmental 

questionnaire to ensure required 

information is available as soon as 

possible

Upcoming webinars will provide 

detailed information 

Start now

1

2

3

National Environmental 

Policy Act (NEPA)
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Workforce Development (1/2)

Create good jobs

Recruit, hire, train, and retain a diverse and skilled construction and 

manufacturing workforce

Include women and economically disadvantaged individuals

Engage with community partners

Child care plan required in any application with direct funding request 

over $150M
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Strategic partners required; sectoral 

partnerships strongly encouraged

Good Jobs Principles should be applied to newly 

created and pre-existing jobs

The Workforce Guide will be a key resource, available later this month

Workforce Development (2/2)
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Broader Impacts

Commitments 

to future 

investment

Support for 

semiconductor 

R&D

Inclusive 

opportunities 

for businesses

Climate and 

environmental 

responsibility

Community 

investments

Domestic 

content 

preferences
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Funding Instruments

CHIPS Incentives Funding Other Funding Sources

Private Investment

Investment Tax Credit

(26 U.S.C. § 48D)

State & Local Incentives

Direct 

funding

Loans Loan 

guarantees
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Direct 

funding

Loans Loan 

guarantees

Total funding

For CHIPS Direct Funding, 

up to $38.2B 

available in total

For CHIPS Loans and Loan 

Guarantees, up to $75B in 

total in direct loan or 

guaranteed principal 

Funding Allocation (1/2)
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Direct 

funding

Loans Loan 

guarantees

Funding by project

Direct funding expected to be 

5-15% of project capital 

expenditures

Expected total amount of a 

CHIPS Incentives Award 

expected not to exceed 35% 

of project capital 

expenditures

Funding Allocation (2/2)
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CPO will preference applications that credibly 

commit to investing in the domestic 

semiconductor industry as well as the extent of 

the applicant’s commitment to refrain from stock 

buybacks. Award recipients cannot use CHIPS 

funds for buybacks or dividends.

Reinvesting capital in the U.S. semiconductor 

industry is a priority.

Upside sharing for projects whose profits 

significantly exceed projections.

Dividends, Buybacks, and Upside Sharing
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Substantial back and forth between the CPO and applicant

Highly iterative and dynamic

Applications accepted on rolling basis

Holistic review process

Multiple projects can be on the same application; a single applicant 

can submit multiple applications 

CPO takes extremely seriously the importance of protecting 

confidential business information 

Application Overview
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Statement of interest (open to all)

Pre-application (optional)

Full application

Due diligence

Award preparation

Feedback

Application Process

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

Submissions accepted as of...
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Purpose

Help CPO gauge interest in the program 

and the types of projects and applicants 

applying, and prepare to review 

applications

The SOI will not be evaluated for purposes of review 

and selection of awards 

What is needed?

• Applicant information

• Basic project information including 

nature of the project and potential 

scope

• Estimated timeline for next submission

• 1 SOI per application

All applicants eligible for 

funding across any 

funding opportunity

Earliest submission on 

February 28, 2023

Required 21 days before 

next submission

Submit an SOI via 

CHIPS.gov 

Statement of Interest (SOI)
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Purpose

Create an opportunity for dialogue 

between CPO and the potential applicant 

before preparation of full application to 

ensure it is ready to meet program 

requirements and address program 

priorities

What is needed?

• More detailed description of proposed 

project(s)

• Summary financial information (refer to 

NOFO section IV.H.3)

Strongly recommended 

for current-generation, 

mature-node, or backend production facilities

Earliest submission for 

leading edge applicants: 

March 31, 2023

Earliest submission for 

current-generation, 

mature-node or back-end 

production facilities:

May 1, 2023

Pre-Application
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Purpose

Submit a full application to be officially 

considered for a CHIPS Incentive Award

What is needed?

• Detailed information on the proposed 

project(s) to enable evaluation of its 

merits

• Detailed financial modelling (refer to 

NOFO section IV.I.7)

• CPO will make use of available 

benchmarks in the semiconductor 

industry

Required for all 

applicants

Earliest submission for 

leading-edge applicants: 

March 31, 2023

Earliest submission for 

current-generation, 

mature-node or back-end 

production facilities:

June 26, 2023

Full Application
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If CPO determines that a full application 

is reasonably likely to receive an award 

and there is, or likely will be, agreement 

on a Preliminary Memorandum of 

Terms, the application will enter the due 

diligence phase.

What is needed?

• Validation of national security, 

financial, and other information

• Possible engagement of outside 

advisors; applicants will be asked if 

they are willing to cover costs before 

moving to this stage

Award Issuance

The Department will prepare and issue 

one or more CHIPS Incentive Awards 

for applications selected for funding. 

Specific terms and conditions will vary 

by award.

When will these funds be disbursed?

• Disbursements will be tied to project 

milestones

• Project milestones will be determined 

during the application process

• Milestones will vary by project

Due Diligence
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Resources
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Next Steps

• Submit a Statement of Interest

• Visit CHIPS.gov for resources, including:

• Applicant guides and templates

• Notice of Funding Opportunity

• Vision for Success paper

• FAQs and fact sheets

• Webinar schedule (and recordings of prior webinars)

• Join our mailing list

• Contact us

• askchips@chips.gov – general inquiries

• apply@chips.gov – application-related inquiries
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Question and Answers
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Thank you