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Commerce Department Seeks to Protect CHIPS Incentives Program With Proposed Rule

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Commerce Department Seeks to Protect CHIPS Incentives Program With Proposed Rule

The Department of Commerce’s National Institute of Standards and Technology has issued a notice of proposed rulemaking outlining guardrails to prevent the improper use of incentives under the CHIPS Incentives Program established through the CHIPS and Science Act. The law would also protect U.S. technologies and innovation from foreign adversaries.

If passed, the rule would bar CHIPS incentives recipients from using the funds in other countries and investing in semiconductor production in foreign countries of concern, such as Russia, China, Iran and North Korea, for a period of 10 years following the award, NIST said Tuesday.

“CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure malign actors do not have access to the cutting-edge technology that can be used against America and our allies,” said Commerce Secretary Gina Raimondo.

The rule also aims to classify semiconductors as critical to national security; strengthen U.S. export controls; restrict the expansion of legacy facilities in foreign countries of concern; and establish standards to limit expansion of advanced facilities in such countries.

The department will open the proposed rule for public comments for a period of 60 days.