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

CHIPS for America

Small Supplier NOFO Q&A Session

Semiconductor materials and manufacturing equipment facilities

January 9, 2024
National Institute of Standards and Technology | U.S. Department of Commerce 2

WELCOME

• We will answer as many questions as possible today. Please 

submit any questions through the Q&A button at the base of the 

screen.

• 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 CHIPS Program Office Speakers

Adam Schafer

Head of Supply Chain 

Strategy

Olivia Briffault

Investment Principal

Harry Finegold

Investment Principal

Nihal Kotragouda

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

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 

To support the 

construction of 

semiconductor R&D 

facilities

Funding Opportunity 

(Released)

September 29, 2023

For smaller 

semiconductor 

materials and 

equipment facility 

projects under $300M
National Institute of Standards and Technology | U.S. Department of Commerce 5

Facilities for Semiconductor Materials and 

Manufacturing Equipment

The CHIPS Incentives Program – Facilities for Semiconductor

Materials and Manufacturing Equipment NOFO is the official funding

announcement document. Nothing in this presentation or the

accompanying materials is intended to contradict or supersede information

in the NOFO. The NOFO controls in the event of any conflicts.
National Institute of Standards and Technology | U.S. Department of Commerce 6

Vision for Success – Supply Chain for Success

By the 

end of the 

decade...

Strengthen Supply Chain Resilience

 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

Advance U.S. Technology Leadership

 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.

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

Small Supply Chain Application Process

Phase Purpose Submission Dates

Concept plan

1 Concept Plan

Individual merit assessment of eligible, complete, and 

responsive concept plans. Once scored, a subset of 

submissions will be invited to the full application phase.

Accepted between 

December 1, 2023, and

February 1, 2024.

Full application 2 Full Application

Holistic and qualitative evaluation based on evaluation 

criteria and selection factors. Based on the evaluation, it will 

be determined whether to recommend an application for award.

3 Due Diligence Due diligence

Conduct due diligence on applications that have received 

the preliminary memorandum of terms, which would include 

national security risks, financial and commercial information, 

environmental impacts, and other issues.

For applications invited 

to the full application 

phase, the program will 

communicate 

submission dates 

individually upon 

notifying them of their 

advancement. a

Award Preparation

and Issuance 4

Application approval, modification, or rejection by 

selecting official. Award decisions are final and may not be 

appealed.

Concept Plan submissions portal opened on November 17. If you are planning to submit a Concept Plan by 

February 1, please register as soon as possible and familiarize yourself with the portal and resource materials.
National Institute of Standards and Technology | U.S. Department of Commerce 8

Resources

Next Steps

• Submit a Concept Plan Application

• Visit CHIPS.gov for additional resources

• Join our mailing list

• Contact us: apply@chips.gov for applicationrelated inquiries

Additional Resources

• Concept Plan Instructions

• NOFO 2

• NOFO 2 Fact Sheet

• NOFO 2 FAQ’s

• NOFO 2 Launch Webinar

Accepted between December 1, 

2023, and February 1, 2024
National Institute of Standards and Technology | U.S. Department of Commerce 9

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

Frequently Asked Questions

Can construction costs spent in 2023/Q1 2024 be included 

in overall project costs, or can we only include costs 

incurred after an approved CHIPS Act Application?

Applicants should include capital expenditures that cover the entire 

period of construction even if that period begins before the 

application was submitted. 
National Institute of Standards and Technology | U.S. Department of Commerce 11

Frequently Asked Questions

Can support documents for a Concept Plan such as customer 

reference letters be submitted after the 2/1/2024 portal close?

The Concept Plan portal will close on 2/1/2024. All application 

materials should be submitted by that date.
National Institute of Standards and Technology | U.S. Department of Commerce 12

Frequently Asked Questions

Do non-profit research institutions count as subrecipients? 

Members of consortia may include institutions of higher education, government 

entities, anchor institutions, workforce training providers, labor unions, economic 

development corporations, philanthropic foundations, industry organizations, 

Tech Hubs, or other relevant entities. Organizations that do not qualify as covered 

entities may participate in consortia and receive funding as subrecipients or 

contractors to an eligible covered entity (Page 8 of 45; NOFO 2 - Semiconductor 

Materials and Manufacturing Equipment).

The CHIPS Incentives Program seeks to further priorities relating to economic 

and national security, workforce, and other matters. Please refer to the “Concept 

Plan Evaluation Criteria” section in the NOFO for Semiconductor Materials and 

Manufacturing Equipment (page 38 of 45) for additional detail on project scoring.
National Institute of Standards and Technology | U.S. Department of Commerce 13

Frequently Asked Questions

What are the minimum requirements to be qualified for this 

opportunity? Can a company with operations in the US but 

100% owned by Japanese qualify?

Generally speaking, applicants should be domestic legal entities. As long as a 

domestic legal entity is applying, even if it is owned by a Japanese entity, it 

should still be eligible. 

For projects, the minimum requirements are to have a project that is for the 

construction, expansion, or modernization of a semiconductor material or 

manufacturing equipment facility for which the capital investment falls below $300 

million provided you also meet the other statutory requirements for funding under 

this NOFO (like being a covered entity – refer to Section I.B.2 in NOFO 2).
National Institute of Standards and Technology | U.S. Department of Commerce 14

Live Questions
National Institute of Standards and Technology | U.S. Department of Commerce 15

Process Additional Questions
National Institute of Standards and Technology | U.S. Department of Commerce 16

Frequently Asked Questions

May I apply for loans or loan guarantees under the second 

NOFO?

No, the second NOFO offers awards only in the form of direct funding. However, 

the Department intends to facilitate opportunities to increase access to credit for 

smaller suppliers by connecting suppliers with credit providers of all sizes. This 

will include a dedicated effort within the CHIPS Investments Office as well as 

online tools to connect potential loan-seekers with a list of private-sector financial 

institutions, including direct lenders, banks, and asset managers. More 

information on these programs is forthcoming.
National Institute of Standards and Technology | U.S. Department of Commerce 17

Frequently Asked Questions

How is the requested financial information for this funding 

opportunity different than what is required for the previous 

funding opportunity?

• This funding opportunity has been streamlined so that it's tailored for smaller 

businesses.

• Applicants will be asked to provide information about their planned capital 

investment and sources of funds via a Sources and Uses of Funds form during 

the Concept Plan phase. There is no financial model required in the Concept 

Plan phase.

• A substantially simplified model is required for the Full Application and a 

sample model is available on the CHIPS website.
National Institute of Standards and Technology | U.S. Department of Commerce 18

Frequently Asked Questions

I am a supplier to a supplier. Am I eligible under the second 

funding opportunity?

As defined in the second NOFO, semiconductor materials facilities include 

facilities that manufacture or produce raw and intermediate materials, and 

semiconductor manufacturing equipment facilities include facilities that produce 

the subsystems that enable or are incorporated into manufacturing equipment. 

These suppliers to a supplier may apply for funding so long as their capital 

investment falls below $300 million, provided they meet the other eligibility 

requirements in the funding opportunity.
National Institute of Standards and Technology | U.S. Department of Commerce 19

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

Frequently Asked Questions

Materials facilities are not eligible for the Investment Tax 

Credit. Will they receive additional funding?

Most direct funding awards under NOFO 2 will equal 10 percent of project capital 

expenditures. In rare cases, applicants may receive an award of either 20 percent 

or 30 percent if they 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. Projects 

that are eligible for the Investment Tax Credit will not receive an award of more 

than 20 percent of project capital expenditures. 
National Institute of Standards and Technology | U.S. Department of Commerce 21

Consortium Additional Questions
National Institute of Standards and Technology | U.S. Department of Commerce 22

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

Frequently Asked Questions

Is the Department requiring consortia to have particular 

members?

No. However, the Department expects that strong consortia will include at least 

two suppliers, a state or local government entity, and an anchor institution such 

as a semiconductor fab. Other members may include 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 24

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

Frequently Asked Questions

The Department expects strong consortia to include an 

anchor institution, like a semiconductor fab. Are there 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 26

Frequently Asked Questions

For those of us who represent state and local governments, 

what does a good “letter of support” look like for applicants 

we are really excited about?

• Strong state and local incentives letters will include a description of the nature 

of collaboration between the applicant and state/local government; description 

and dollar value of both the project-specific and cluster incentives offered by 

your entities (including tax/direct financial incentives to the project; energy, 

water, or wastewater investments; and/or workforce development investments 

to support the project.

• Especially strong letters will spell out how the particular project or consortium is 

crucial to the development of a vibrant semiconductor cluster ecosystem in the 

state/region and fills critical gaps in the regional ecosystem.
National Institute of Standards and Technology | U.S. Department of Commerce 27

Next Steps and Additional Resources
National Institute of Standards and Technology | U.S. Department of Commerce 28

Additional Questions

• We will now answer any additional questions as time 

permits.

• If your question was not answered:

• For more application-related questions, please 

email apply@chips.gov.

• For general inquiries, email askchips@chips.gov.

• We will be holding additional Q&A sessions in the 

new year.
National Institute of Standards and Technology | U.S. Department of Commerce 29

Thank You!