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Commerce Department Issues Strategy for CHIPS for America Program Implementation

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The Department of Commerce has unveiled its strategy for implementing a $50 billion program meant to strengthen the U.S. semiconductor industry, create jobs and drive innovation.

The implementation strategy for the CHIPS for America program was released in accordance with an executive order that President Joe Biden signed in August, the department said Tuesday.

The document outlines the program’s four key goals, such as expanding domestic semiconductor production, building a stable supply of mature node semiconductors and investing in research and development efforts to ensure that future chip technologies are developed and manufactured in the U.S.

The CHIPS for America program backs three initiatives: large-scale investments in leading-edge manufacturing; new production capacity for mature and current generation chips, new and specialty technologies and semiconductor industry suppliers; and initiatives to strengthen U.S. leadership in R&D.

The program also establishes long-term strategic goals and calls for potential program applicants to consider approaches to increase scale and attract private capital and advance collaboration to build out semiconductor ecosystems.

According to the strategy, the program will spend approximately $28 billion on efforts meant to drive domestic manufacturing of logic and memory chips and invest $11 billion in a national semiconductor technology center and national advanced packaging manufacturing program, among other initiatives.

The department will release application guidance for the program in early February and plans to issue awards and loans on a rolling basis.