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Funding opportunity for large semiconductor supply chain projects

June 29, 2023

The U.S. Department of Commerce recently announced a funding opportunity and application process for large semiconductor supply chain projects that include materials and manufacturing equipment facility projects with capital investments equal to or exceeding $300 million. Alongside the funding opportunity for larger supply chain projects, the Department also released a “Vision for Success" outlining strategic objectives for investments in the semiconductor supply chain. The goals in the vision paper include:

(1) strengthening supply chain resilience, including by reducing chokepoint risks flowing from the geographic concentration of critical semiconductor inputs;

(2) advancing U.S. technology leadership, including by incentivizing major U.S. manufacturing equipment and materials suppliers to increase their footprints in the United States and attracting non-U.S. suppliers of the world's most advanced equipment, materials, and subsystems to establish large-scale footprints here; and

(3) supporting vibrant U.S. fab clusters, including ensuring an ecosystem of reliable suppliers supports each CHIPS-funded cluster.

Application Processes and Timelines

Large-scale supply chain projects that are now eligible will follow a five-part application: statement of interest, pre-application (optional but recommended), full application, due diligence, and award preparation and issuance. Applicants will be evaluated based primarily on the extent to which the application addresses the program's economic and national security objectives. They will also be considered based on commercial viability, financial strength, project technical feasibility and readiness, workforce development, and broader impacts. 

Current CHIPS manufacturing incentives application processes and timelines:

  • For leading-edge commercial facilities: Both pre-applications (optional) and full applications are being accepted on a rolling basis.
  • For current-generation and mature-node commercial facilities: Pre-applications (optional but recommended) are currently being accepted on a rolling basis and full applications will be accepted on a rolling basis starting June 26, 2023.
  • For larger materials and manufacturing equipment supplier facility projects with capital investments equal to or exceeding $300 million: Pre-applications (optional but recommended) will be accepted on a rolling basis starting September 1, 2023, and full applications will be accepted on a rolling basis starting October 23, 2023.
  • For all potential applicants: The Department continues to accept statements of interest on a rolling basis to inform the program of interest further and make for efficient application review.

An additional funding opportunity will be released in the fall for supplier projects below the $300 million threshold with a tailored application that smaller businesses can navigate.

semiconductors, funding opportunity