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CHIPS Initiative

The CHIPS for America program aims to fund the domestic semiconductor industry and create jobs within the industry.

Official website â†—
Leadership

Dr. Laurie Locascio - Director of NIST and the Under Secretary of Commerce for Standards and Technology

Authority
See office profile for detailed authorities
2023 Enacted Budget
N/A
2025 Budget Request
$6,095,000,000

Authority

Responsibilities and goals

  • Invest in the production of strategically important semiconductor chips
  • Ensure a secure supply of older and current generation chips for national security and critical industries,
  • Strengthen U.S. semiconductor R&D leadership
  • Grow the semiconductor workforce

Authorizations

The National Defense Authorization Act for Fiscal Year 2021 (NDAA) authorizes key components of the CHIPS for America program. Sections 9902 and 9906 of the NDAA authorize the Secretary of Commerce to implement various semiconductor initiatives.

The table below summarizes these authorizations:

AuthorizationSection
Provide funding to eligible applicants to incentivize investment in facilities and equipment in the United States for semiconductor fabrication, assembly, testing, advanced packaging, production9902
Provide funding for research and development of semiconductors9902
Provide funding for materials used to manufacture semiconductors9902
Provide funding for semiconductor manufacturing equipment9902
Establish a National Semiconductor Technology Center (NSTC) to conduct research and prototyping of advanced semiconductor technology9906
Establish a National Advanced Packaging Manufacturing Program (NAPMP)9906
Establish up to three Manufacturing USA institutes to advance research and commercialization of semiconductor manufacturing technologies9906
Carry out an R&D program to advance measurement science, standards, material characterization, instrumentation, testing, and manufacturing capabilities9906

The CHIPS Act of 2022 (Division A of P.L. 117-167) builds upon the NDAA framework by appropriating funds and amending previous legislation. This Act provides the necessary funding to implement the CHIPS for America program.

The table below summarizes authorizations and appropriations:

AuthorizationSection
Appropriate $50 billion to the Department of Commerce for implementing semiconductor programsDivision A
Allocate $39 billion for manufacturing incentivesDivision A
Allocate $11 billion for research and development activitiesDivision A
Amend P.L. 116-283 (the NDAA) to implement and fund the CHIPS programDivision A

Programs

CHIPS Incentives Program: This program provides financial assistance to incentivize investment in semiconductor fabrication, assembly, testing, packaging, production, and research and development. The DOC can provide funding through through grants, cooperative agreements, loans, and loan guarantees. For FY 2025, $5 billion is allocated to continue making financial assistance awards to promote investment in domestic semiconductor production capacity, including addressing national security requirements.

National Semiconductor Technology Center (NSTC): The NSTC conducts research and prototyping of advanced semiconductor technology. Its activities include R&D challenges, operation of prototyping facilities, roadmapping activities, investment in new semiconductor technologies, and relevant workforce development efforts. For FY 2025, $1.03 billion is allocated to provide ongoing funding for projects and operations of the NSTC.

Manufacturing USA Semiconductor Institutes: These institutes aim to strengthen the semiconductor ecosystem by advancing research and development in areas such as design, fabrication, advanced testing, assembly, and packaging capabilities. $25 million is allocated in FY 2025 to provide support to Manufacturing USA institutes focused on semiconductor and microelectronics innovation.

Metrology Research Program: This program supports metrology R&D for the semiconductor industry. It focuses on enabling advances in measurement science, standards, material characterization, instrumentation, testing, and manufacturing capabilities related to semiconductors. $23 million is allocated in FY 2025 to NIST to these programs.

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