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 23, 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
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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.
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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

ONE WEEK LEFT!
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 we include letters of support in our application? Could 

this include additional real commercial documents, to further 

verify commercial viability? 

A strong application will present a sophisticated understanding, backed by 

evidence, of the demand for a project’s output and other sources of existing and 

potential future supply. Strong applications will include evidence of offtake 

commitments or other evidence of specific customer demand. 

The Department also encourages purchase commitments and collaborations 

across the supply chain to clarify future demand and the project’s 

commercial/financial viability. 

The Concept Plan narrative is strictly limited to 15pgs. However, there is also an 

additional “Optional Uploads” section with no page limit where applicants can 

submit supporting evidence. 
National Institute of Standards and Technology | U.S. Department of Commerce 11

Frequently Asked Questions

If an award is granted, what is the milestone or process for 

receiving funds? 

Disbursements of direct funding will be tied to project milestones in connection 

with both the capital expenditure components of the project and the workforce 

development and/or operational cost components of the project. 

The milestones for the disbursement of funds will be determined during the 

negotiation of terms during the full application process. 

The rate of disbursement is generally expected to be proportional to the rate at 

which non-federal dollars are expended over the course of the project, although 

determinations will be made on a case-by-case basis. 
National Institute of Standards and Technology | U.S. Department of Commerce 12

Frequently Asked Questions

Where may I submit my project financials and sources & 

uses? What should be included?

The Sources and Uses is embedded in the web form and is not a 

separate spreadsheet or submission.

Provide the information listed in the NOFO about capital investment 

and capital sources via the web form on the CHIPS Incentives 

Program application portal. 

In addition, provide a narrative that details specific, credible 

evidence of the availability of the listed sources of funds”
National Institute of Standards and Technology | U.S. Department of Commerce 13

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 14

Frequently Asked Questions

Can we use equipment purchases that has not been installed, 

before construction, as part of the application amount for the 

expansion project?

Applicants should include capital expenditures that cover the entire period of 

construction even if that period begins before the application was submitted. 

Project capital expenditures refers to expenses incurred in the construction or 

improvement of physical assets, such as the costs of land, building and 

construction, equipment and installation, physical improvements, and working 

capital during the construction phase.
National Institute of Standards and Technology | U.S. Department of Commerce 15

Frequently Asked Questions

What is the expected average award size for applicants? Is 

the NOFO expected to be issued only once?

Awards are expected to be 10% of project capital expenditures and this NOFO is 

for projects < $300mm in capex. We currently have no plans to issue a second 

NOFO. Our national security goals are outlined in the NOFO.

In rare cases, applicants may receive an award of either 20 or 30 percent of 

project capex if they have made a particularly compelling case that their project 

advances the Department’s economic and national security objectives 

and demonstrated that the additional funding is necessary to make the project 

commercially viable.

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

than 20% of project capex.
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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. 
National Institute of Standards and Technology | U.S. Department of Commerce 17

Frequently Asked Questions

Can you describe the next steps in the application process? 

Based on evaluation of the submitted Concept Plans, a subgroup of applicants 

will be invited to the full application phase. At the full application phase, 

submission dates will be communicated individually to applicants upon 

notification of advancement. 

We don’t currently have an anticipated time frame for when those deadlines will 

be submitted but those that have been notified will have sufficient time to prepare 

the application.
National Institute of Standards and Technology | U.S. Department of Commerce 18

Live Questions
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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 20

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 21

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 22

Frequently Asked Questions

My project is not part of a cluster. Should I still apply? 

Through the second NOFO, the Department is particularly focused on projects that 

advance U.S. clusters. But the Department is open to projects that support any of 

the economic and national security objectives outlined in the NOFO. 

If a project does not support a cluster, the application must make a compelling 

case for advancing one of the Department’s other two objectives: strengthening 

supply chain resilience and/or advancing U.S. technology leadership.
National Institute of Standards and Technology | U.S. Department of Commerce 23

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.
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Frequently Asked Questions

I am a supplier that primarily serves a non-semiconductorrelated industry. Am I eligible to apply?

If you are a potential applicant for a project related to a semiconductor material 

facility or a semiconductor manufacturing equipment facility, then you are eligible 

to apply for funding even if a portion of your business is not related to 

semiconductors.

Please note, however, that our evaluation of the merits of a supply chain project 

will consider the materiality of the project’s semiconductor-related output, relative 

to both overall project size and to the U.S. semiconductor ecosystem.
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Frequently Asked Questions

Do members of a consortium need to share business 

confidential information with each other?

No. Each member of a consortium will have to submit their own concept plan and 

full application. They will not be required to share business confidential information 

with other members of the consortium.

In addition, the CHIPS Program Office and the Department will follow applicable 

laws, including, for example, the CHIPS Act, the Trade Secrets Act, and the 

Freedom of Information Act (FOIA), to protect such information. 

We will not identify submitters to each other unless specifically requested.
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Next Steps and Additional Resources
National Institute of Standards and Technology | U.S. Department of Commerce 27

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.

The application portal for concept plans closes on February 1st!

Applicants must submit a concept plan to be considered for the full 

application phase and funding.
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Thank You!