chips

The National Science Foundation announced 16 finalists for the first-ever NSF Regional Innovation Engines (NSF Engines) competition, spanning a range of key technology areas and societal and economic challenges highlighted in the "CHIPS and Science Act." The NSF Engines will link up with local and regional partners to expand innovation nationwide and create collaborative and inclusive technology-driven innovation ecosystems.

The U.S. Department of the Treasury released new proposed regulations this week that, together with draft guidance published in March, define how semiconductor companies can take advantage of the advanced manufacturing investment tax credit created as part of the CHIPS & Science Act. This credit is equal to 25% of the capitalized costs of tangible property used to manufacture semiconductors or semiconductor manufacturing equipment placed in service after 2022, and the credit is refundable, meaning that companies posting a loss can still receive its full value. In evaluating the cost of the legislation, the Congressional Budget Office expected more than $24 billion in claims for the credit. The latest proposed guidance defines elective payment procedures, which are intended to help companies receive the credit’s financial benefits more quickly. Comments on the rule are due by August 14.

Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio announced five leaders joining the CHIPS Research and Development Office within CHIPS for America.

Just before the 2023 Memorial Day weekend, the Texas Senate passed and sent the Texas CHIPS Act bill to the governor’s desk. The legislation creates the Texas Semiconductor Innovation Consortium in a bid to protect the state’s competitive standing for future federal funding and authorizes the Texas Semiconductor Innovation Fund. The recently passed Texas budget appropriates $1.3 million for the Consortium, but it does not appear that there is a dedicated appropriation in the budget bill for the Fund.

The vision and strategy for a National Semiconductor Technology Center (NSTC), a key part of the R&D program set out in the CHIPS and Science Act, was released this week by the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST). The paper, A Vision and Strategy for the National Semiconductor Technology Center, describes the center’s mission, core programs, and other features. While the paper refers to it as a center, it is expected to consist of a headquarters facility and an integrated network of NSTC-affiliated technical centers with locations geographically distributed to leverage existing capabilities. It will also start an investment fund that enables future innovations in early-stage companies and will create programs that strengthen and expand the semiconductor workforce. 

This week, the U.S. Department of Commerce updated its timeline for funding opportunities that support semiconductor and related manufacturing, as well as relevant R&D facilities. The department still intends, as first stated in its strategic plan last fall, to make funding for chip fabrication facilities available later this month. The funding opportunity for related manufacturing will be made available in “late spring.” The announcement, which was made over email, states that funding to support the construction of semiconductor R&D facilities is planned for “early fall” but does not specify if that opportunity would encompass all or just some of the research centers and networks funded in the CHIPS and Science Act. 

A recent report outlines over 100 initiatives that could boost the semiconductor industry. The Arizona Commerce Authority and Boston Consulting Group recently collaborated on a National Semiconductor Economic Roadmap (NSER) to advance semiconductor competitiveness in the United States. The report features input from over 80 industry leaders, education institutions, and public sector leaders across the nation to outline a 10-year, industry-led action plan for the semiconductor industry, focusing on infrastructure, supply chain, workforce, and entrepreneurship.

The National Institute of Standards of Technology (NIST) is seeking public input through Requests for Information (RFIs) for two programs under the CHIPS Act. Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio refers to the U.S.’s leadership role in semiconductor manufacturing as “critically important to our prosperity and national security” as they are key components in artificial intelligence and quantum computing. Locasio notes that in order to achieve this, America needs a “whole-of-nation” approach, justifying the two RFIs under different CHIPS programs.

With President Biden’s signing the CHIPS and Science Act on Aug. 9, states and universities are already making plans to build on the funding opportunities present in the legislation. For example, a group of Midwest colleges and universities has formed a new coalition to support the advanced semiconductor and microelectronics industry as Intel begins construction on a microchip plant in Ohio, and multiple states are positioning themselves to compete for semiconductor manufacturing incentives — as encouraged by Commerce Secretary Gina Raimondo. This article summarizes these early state actions (for recent federal activity, see SSTI’s coverage).

The recently-passed CHIPS and Science Act included $54.2 billion in appropriations, largely for semiconductor manufacturing incentives ($39 billion) and R&D ($11 billion). The administration is releasing information about its planned distribution of funds. Recent resources include: a strategic plan from the U.S. Department of Commerce, the agency administering the bulk of the funding; a research recommendations report from the President’s Council of Advisors on Science and Technology (PCAST); and, a new CHIPS.gov website from Commerce.