How do I Get CHIPS Act Funding?

Breaking News: The Treasury Dept. just released proposed rules for the 25% manufacturing tax credit. Read them here.

Funding applications will be released in three phases. Scroll down to see which phase fits your business and when the application window will open.

The application for Phase I manufacturers is out. For this phase, direct grants and tax credits can cover as much as 40% of project costs, with subsidized loans available too. Applicants should follow the steps below.

(1) Register on SAM.gov and obtain a "UEID" number. This can take time

(2) File a "statement of interest" with the government via the CHIPS Act application portal

(3) Prepare and submit a "pre-application" that meets the requirements (e.g., local incentive, workforce training etc.)

(4) The Department will advise based on the "pre-application" whether applicant should pursue a full application

(5) Submit a full application. This is extensive and will involve negotiations with the Department

(6) The funds will be released in milestone payments and be subject to compliance oversight

Our expert grant writing team can assist with the entire process. Reserve time with us here.

Email: equity@chipsact.com

CHIPS Act Background

The CHIPS Act provides $52 billion to promote domestic semiconductor manufacturing and R&D including a $1.5 billion public wireless innovation fund. There is also a 25% refundable tax credit for certain capital expenditures. Funding will be released in three phases. Below are details on phase one and the timetable for future phases.

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Eligibility

FAQs

Timetable

Phase One Is For Commercial Fabrication Facilities Defined as Follows:

(1) Leading-Edge Facilities: Those using advanced processes to achieve highest transistor and power performance. E.g., Logic: High volume production using EUV lithography tools. Memory: Producing 3d NAND flash chips with 200+ layers and/or DRAM with a half pitch of 13nm or less.

(2) Current-Generation Facilities: non-leading edge, up to 28nm process technologies, including logic, analog, radio frequency, and mixed-signal devices. Includes manufacturing capacity for new and specialty technologies e.g., devices based on compound semiconductor materials.

(3) Mature Node Facilities: Manufacturing generations of (a) logic and analog chips that are not based on FinFET, post-FinFET transistor architectures, or any other sub-28 nm transistor architectures; (b) discrete semiconductor devices such as diodes and transistors; (c) optoelectronics and optical semiconductors; and (d) sensors.

(4) Back-End Production Facilities: For the assembly, testing, or packaging of semiconductors that have completed the front-end fabrication process including advanced packaging and especially those with low operating costs (e.g., via automation)

*Recipient should be a domestic legal entity, although foreign recipients may be allowed in "exceptional cases."

Q. What are the rules for the Investment Tax Credit?

A. The proposed rules for the 25% manufacturing tax credit are available here.

Q. What constitutes a covered incentive from state and local govt.?

A. It can take many forms (e.g., tax break, grant agreement relating to workforce training or vocational education, any concession with respect to real property, funding semiconductor R&D etc.)

Q. Can the state and local incentive be contingent?

A. Yes. The applicant must submit a letter from the government entity detailing the incentive and the contingency.

All Applicants

Statements of Interest Portal Opens

Feb. 28, 2023

Phase I: Leading Edge Only

Pre-Application & Full Application Opens:

Mar. 31, 2023

Phase I: Current, Mature Node & Back-End

Pre-Application Opens: May 1, 2023

Full-Application Opens: Jun. 26, 2023

Phase II: Materials Suppliers and Equipment Manufacturers:

Application window opens late spring

Phase III: Construction of semiconductor R&D facilities:

Application window opens early fall

The CHIPS Act team helps with expert grant writing, building political support for grant proposals and obtaining private capital to meet matching funds requirements.

Key Documents

The Commerce Department's National Security Guardrails for CHIPS funding recipients (i.e., rules restricting grantees from doing business with certain foreign countries)

The Department of Commerce's Detailed Rules on Eligibility and How to Apply for Phase I funding known as a Notice of Funding Availability or NOFA (2/28/23)

The Commerce Department's "Vision for Success” paper laying out strategic objectives for its investments in commercial fabrication facilities

NTIA's Request for Public Comment on the Public Wireless Supply Chain Innovation Fund

Text of The CHIPS Act of 2022 as passed by Congress on 7/28/22 and sent to the President for signature

Text of the FY21 National Defense Authorization Act, authorizing appropriations for the CHIPS Act program P.L. 116-283 (See sections 9902 and 9906)

Email: equity@chipsact.com