We are officially halfway through the year and that means that the CHIPS of America program is kicking off applications and grants for funding. The first funding opportunity was released in February and the second was released at the end of June. These funding opportunities open the door to better and broader manufacturing opportunities in the United States, which means more options for you to choose from.
Here’s a quick recap for anyone who isn’t yet familiar with what the Act entails.
Officially dubbed The CHIPS and Science Act, this piece of legislature was signed into law back in August of 2022. The core focus of the Act was to provide funding to incentivize the expansion and creation of semiconductor fabrication facilities. This Act is focused on providing funding that will be granted over time to help with the creation of manufacturing facilities, expansion of existing facilities, and even education of current and future workers who would be working for the manufacturers.
There are key benefits that come with this measure, explaining why it received bipartisan support. For one thing, this will provide an influx of paying jobs for Americans. Aside from this, the Act seeks to help lower the cost of semiconductor chips and strengthen supply chains by creating more stateside options.
The CHIPS for America Incentive Program is a part of the CHIPS and Science Act of 2022. CHIPS for America focuses on funding for semiconductor manufacturing. The first funding opportunity for the CHIPS program was opened in late February 2023. This Notice of Funding Opportunity (NOFO) supported investments in commercial facilities for the front- and back-end fabrication of leading-edge, current-generation, and mature-node semiconductors.
More recently, the second NOFO was announced in June 2023. This funding opportunity seeks applications for direct funding and loans that will support projects, equaling or exceeding $300 million, involving the construction, expansion, or modernization of commercial facilities for wafer manufacturing and facilities used to manufacture semiconductor materials and semiconductor manufacturing equipment.
There is another funding opportunity that will be announced in the future for smaller projects. This will cover materials and manufacturing equipment facilities that will fall below the $300 million capital investment threshold and will have their own specialized application process.
As more funding becomes available and newer and/or improved manufacturing facilities in the United States are added to the world playing field, we will continue to do our due diligence on our customers behalf. This means we will continue to find the best sources for materials and components to provide, no matter what corner of the world they come from.
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