Applications for the first CHIPS and Science Act funding, which will help the US advance the semiconductor industry in the US officially started. The program will accept the first funding opportunity on March 31st, 2023.
The Launch of CHIPS for America Funding
The program already has a budget of $52.7 million in tax credits and funding for the advancement of the semiconductor industry in the US, and the government has allotted $39 billion for semiconductor manufacturing incentives, specifically.
Since it has officially launched, the Biden Administration is looking for projects that would construct, expand or modernize facilities for the production of "leading-edge, current-generation and mature-node semiconductors."
The administration aims to have several "leading-edge" logic fabrication facilities, and DRAM chip manufacturers, and reach production capacity goals for the mature-node semiconductors before the decade ends, as mentioned by Engadget.
The program will fund projects that will help achieve that goal, as well as provide more funding opportunities for R&D and manufacturing equipment facilities after. This is an effort of the Biden Administration to create good-paying jobs and stimulate private-sector investment.
A funding opportunity for semiconductor materials and equipment facilities will be released in the late spring by the department, while another for research and development facilities will be launched in the fall.
Secretary of Commerce Gina M. Raimondo stated that the program presents an opportunity to unleash the next generation of American innovation, protect the country's national security, and preserve the US' global economic competitiveness.
She added that after implementing CHIPS for America, the US will become a premier destination in the world where new leading-edge chip architectures can be invented through the country's research labs.
Read Also: Apple, NVIDIA, AMD Chips Will Soon be Manufactured in Arizona's New Chip Factory
What the CHIPS and Science Program Will Do
Firstly, the program will bolster US leadership in semiconductors. The funding will help advance semiconductor research, development, manufacturing, and workforce development. That also goes for legacy chips used in automobiles and defense systems.
It provides a 25% investment tax credit for capital expenses meant for the manufacturing of semiconductors and related equipment. It is meant to secure domestic supply as well as catalyze hundreds of billions more for private investment.
The funds provided also comes with guardrails to make sure that applicants who receive funding will not build facilities in China or other countries that are of concern to the US. It also prevents companies from using taxpayer funds for stock buybacks and shareholder dividends.
The program will promote innovation in the US for wireless supply chains. There is an allotted $1.5 billion for promoting and deploying wireless technologies that use certain radio access networks, which could lead to the US climbing to the top in wireless technologies.
The CHIPS and Science program will also invest in STEM education and training from K-12 to community college, undergraduate, and graduate education, in order to ensure that citizens of all backgrounds can get a proper STEM education and training opportunities.
Related: Senate Passes the CHIPS and Science Act to Assist American Semiconductor Production
