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Funding Updates

An image of two hands holding a silicon wafer
Credit: Adobe Stock/NIST/A. Kim

President Biden signed the bipartisan CHIPS and Science Act into law on August 9, 2022 — creating a $52 billion investment to revitalize America’s domestic semiconductor industry and strengthen the country’s economic and national security. Of that sum, CHIPS for America within the U.S. Department of Commerce is responsible for administering $50 billion in semiconductor incentives and funding for research and development programs. The activities on this page continue the implementation phase of this key part of President Biden’s Investing in America agenda to bring manufacturing jobs back to the United States, strengthen global supply chains, and secure America’s technology leadership in the 21st century. 

Rocket Lab, Parent Company of SolAero Technologies Corp

Albuquerque, New Mexico

On June 11, 2024, the Biden-Harris Administration announced that the Department of Commerce and Rocket Lab, the parent company of space power provider SolAero Technologies Corp., have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $23.9M in direct funding under the CHIPS and Science Act. 

Key Facts About This PMT: 

New Mexico State Graphic
Credit: CHIPS for America
  • The proposed CHIPS investment would help create a more robust and resilient supply of space-grade solar cells that power spacecrafts and satellites. The modernization and expansion project would increase Rocket Lab’s compound semiconductor production by 50% within the next three years – helping to meet the growing national security and commercial demand for these solar cells in the United States.
  • Rocket Lab is one of two companies in the United States that specialize in the production of highly efficient and radiation resistant compound semiconductors called space-grade solar cells – devices used in space to convert light to electricity.
  • The proposed investment would create over 100 direct manufacturing jobs.

CHIPS Incentives application stage: Due diligence 

PMT announced: June 11, 2024

Absolics

Covington, Georgia

On May 23, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Absolics, an affiliate of the Korea-based SKC, have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $75 million in direct funding under the CHIPS and Science Act to help advance U.S. technology leadership. 

Key Facts About This PMT:

Image of Georgia CHIPS Award
Credit: CHIPS for America
  • The proposed CHIPS investment would support the construction of a 120,000 square-foot facility in Covington, Georgia and the development of substrates technology for use in semiconductor advanced packaging.
  • Absolics glass substrates will be used as an important advanced packaging technology to increase the performance of leading-edge chips for AI, high-performance compute and data centers by reducing power consumption and system complexity. The glass substrates produced by Absolics enable smaller, more densely packed, and shorter length connections resulting in faster and more energy efficient computing.
  • This proposed investment would support over an estimated 1,000 construction jobs and approximately 200 manufacturing and R&D jobs in Covington and enhance innovation capacity at Georgia Institute of Technology (Georgia Tech), supporting the local semiconductor talent pipeline.

CHIPS Incentives application stage: Due diligence 

PMT announced: May 23, 2024

Polar Semiconductor

Bloomington, Minnesota

On May 13, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Polar Semiconductor (Polar) have reached a non-binding preliminary memorandum of terms (PMT) to provide the company with up to $120 million in proposed federal incentives under the CHIPS and Science Act. This proposed funding would catalyze investment from private and state sources to expand Polar's manufacturing facility and introduce new technology capabilities in Bloomington, Minnesota.

Key Facts About This PMT:

Graphic of Minnesota
Credit: CHIPS for America
  • The expansion and modernization would enable Polar to double its U.S. production capacity of sensor and power chips within two years. Additionally, this proposed investment would bring in more U.S. private capital, which would transform Polar from a majority foreign-owned in-house manufacturer to a majority U.S.-owned commercial foundry, expanding opportunities for U.S. chip designers to innovate and produce technologies domestically.
  • This proposed CHIPS funding supports an investment of more than $525 million, catalyzing contributions from the company, state and local entities, and private investors. This collaborative funding approach would not have been possible without the CHIPS and Science Act.
  • Through Polar’s semiconductor manufacturing operations, the Biden-Harris Administration’s proposed investment would create over 160 manufacturing and construction jobs in Minnesota. For the purposes of this project, Polar and construction partner Mortenson have committed to utilizing a Project Labor Agreement (PLA) to support its construction workforce.

CHIPS Incentives application stage: Due diligence  

PMT announced: May 13, 2024

Micron

Clay, New York, and Boise, Idaho

On April 25, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Micron Technology have signed a non-binding preliminary memorandum of terms (PMT) to provide up to roughly $6.14 billion in direct funding under the CHIPS and Science Act to boost U.S. competitiveness in leading-edge memory semiconductor production.

Key Facts About This PMT:

Image of New York an Idaho
Credit: CHIPS for America
  • Micron is widely recognized as a global leader in leading-edge DRAM technology and production and is the only U.S.-based manufacturer of memory chips.
  • The proposed funding would support the construction of two leading-edge Dynamic Random-Access Memory (DRAM) fabs in New York, the first step in Micron’s two-decade vision to invest approximately $100 billion in New York and create roughly 13,500 facility and construction jobs and unlock a $25 billion investment in a DRAM fab in Idaho, which will be co-located with Micron’s R&D facilities in Boise and create approximately 6,500 facility and construction jobs.
    • These investments would advance the company’s plans to onshore approximately 40% of their DRAM chip production over the next two decades.
  • The PMT includes at least $40 million in proposed dedicated workforce funding to help Micron – an industry leader in workforce development – secure the highly skilled workforce it needs to build and operate these fabs.
  • Micron’s projects will operate under Project Labor Agreements (PLA) in New York and Idaho. Both PLAs emphasize workforce training through registered apprenticeships and hiring veterans and local workers. For example, the New York PLA includes a partnership with a local pre-apprenticeship program, which will prepare a diverse workforce for entry into construction trades, and the Idaho PLA includes measures to increase construction work by underserved communities.

CHIPS Incentives application stage: Due diligence  

PMT announced: April 25, 2024

Samsung Electronics

Taylor, Texas, and Austin, Texas

On April 15, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Samsung Electronics (Samsung) have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.4 billion in direct funding under the CHIPS and Science Act. This funding would turn Samsung’s existing presence in Texas into a comprehensive ecosystem for the development and production of leading-edge chips in the United States, including two new leading-edge logic fabs, an R&D fab, and an advanced packaging facility in Taylor, as well as an expansion to their existing Austin facility.

Key Facts About This PMT:

Graphic of Texas
Credit: CHIPS for America
  • The up to $6.4B proposed investment would be split across multiple projects at two separate locations in Central Texas:
    • Taylor, Texas: Construct a comprehensive advanced manufacturing ecosystem that would include two leading-edge logic foundry fabs focused on mass production of 4nm and 2nm process technologies, an R&D fab dedicated to development and research on technology generations ahead of nodes currently in production, and an advanced packaging facility producing 3D High Bandwidth Memory and 2.5D packaging. 
    • Austin, Texas: Expand the existing facilities to support the production of leading fully depleted silicon-on-insulator (FD-SOI) process technologies. 
  • The proposed CHIPS investment in Samsung would propel Central Texas into a state-of-the-art leading-edge ecosystem, creating over 17,000 construction jobs and more than 4,500 good-paying manufacturing jobs within the next five years. The proposed CHIPS investment also includes up to $40 million in dedicated workforce funding.
  • The semiconductors that are designed and manufactured in this ecosystem would serve a wide variety of end markets – from communications, automotive, and defense industries to high-performance computing and artificial intelligence.

CHIPS Incentives application stage: Due diligence  

PMT announced: April 15, 2024

TSMC Arizona Corporation

Phoenix, Arizona

On April 8, 2024, Biden-Harris Administration announced that the U.S. Department of Commerce and TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion in direct funding under the CHIPS and Science Act. This proposed funding would support TSMC’s investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors. 

Key Facts About This PMT: 

Star pinpoint on Phoenix, Arizona
Credit: CHIPS for America
  • The up to $6.6 billion investment would support TSMC’s investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors.
    • The first fab will produce 4nm FinFET process technologies;
    • The second fab will produce the world’s most advanced 2nm nanosheet process technology, in addition to previously announced plans to produce 3nm process technologies; and,
    • The third fab will produce 2nm or more advanced process technologies depending on customer demand.
  • At full capacity, TSMC Arizona’s three fabs would manufacture tens of millions of leading-edge chips that will power products like 5G/6G smartphones, autonomous vehicles, and AI datacenter servers. TSMC Arizona expects to begin high-volume production in their first fab in the U.S. by the first half of 2025.
  • With this proposed funding, TSMC Arizona would be ensuring the formation of a scaled leading-edge cluster in Arizona, creating approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs in this decade and bringing the most advanced process technology to the United States.
  • With total capital expenditures of more than $65 billion, TSMC Arizona’s investment is the largest foreign direct investment in a greenfield project in U.S. history.

CHIPS Incentives application stage: Due diligence  

PMT announced: April 8, 2024

Intel Corporation

Chandler, Arizona, Rio Rancho, New Mexico, New Albany, Ohio, and Hillsboro, Oregon

On March 20, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and Intel Corporation have reached a non-binding preliminary memorandum of terms (PMT) to provide up to $8.5 billion in direct funding under the CHIPS and Science Act to strengthen the U.S. supply chain and re-establish American leadership in semiconductor manufacturing.

Key Facts About This PMT:

Chandler, Arizona; Rio Rancho, New Mexico; New Albany, Ohio; and Hillsboro, Oregon
Credit: CHIPS for America
  • The up to $8.5 billion in CHIPS incentives would be split across four projects: 
    • Chandler, Arizona: Construction of two new leading-edge logic fabs and modernization of one existing fab, significantly increasing leading-edge logic capacity, including high volume domestic production of Intel 18A – the company’s most advanced chip design that enables higher performing, leading-edge chips through RibbonFET gate-all-around transistors and PowerVia backside power delivery.
    • Rio Rancho, New Mexico: Modernization of two fabs into advanced packaging facilities to close an important gap in the domestic semiconductor supply chain. When in full production, this facility will be the largest advanced packaging facility in the United States.
    • New Albany, Ohio: Creation of a new regional chipmaking ecosystem, anchored by the construction of two leading-edge logic fabs, expanded leading-edge foundry capacity, and supply chain diversification.
    • Hillsboro, Oregon: Investment in the premier hub of leading-edge development in the United States through the expansion and modernization of technology development facilities that will utilize the world’s first High NA EUV lithography equipment. The Gordon Moore Park campus at Ronler Acres in Hillsboro, Oregon is the heart of Intel’s innovation hub for leading-edge semiconductor research and technology development in the United States. These investments will further the company’s technological leadership and enable the continued development of new innovations.
  • Leading-edge chips power the most sophisticated technology on the planet, including developing AI and building critical military capabilities. Intel’s process technologies such as Intel 18A and advanced packaging technologies, combined with its foundry services, would better enable U.S. companies to lead the AI industry by ensuring we have a domestic supply of these advanced chips.
  • The PMT also includes approximately $50 million in dedicated funding to develop the company’s semiconductor and construction workforce.

CHIPS Incentives application stage: Due diligence  

PMT announced: March 20, 2024

GlobalFoundries

Malta, New York, and Burlington, Vermont

On February 19, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and GlobalFoundries (GF) have signed a non-binding preliminary memorandum of terms (PMT) to provide approximately $1.5 billion in direct funding under the CHIPS and Science Act to strengthen U.S. domestic supply chain resilience, bolster U.S. competitiveness in current-generation and mature-node (C&M) semiconductor production, and support economic and national security capabilities.

Key Facts About This PMT:

Graphic of New York and Vermont States
Credit: CHIPS for America
  • The approximately $1.5 billion in proposed CHIPS funding would be split across three projects: 
    • Malta, New York – New State-of-the-Art 300 mm Fab: The construction of a new, large-scale 300 mm fabrication facility that is expected to produce high value technologies not currently available in the U.S.
    • Malta, New York – Capacity Expansion for Automotive: The expansion of the existing Malta, New York fabrication facility, which includes a strategic agreement with General Motors, that is expected to secure a dedicated supply of essential semiconductor technologies.
    • Burlington, Vermont – Fab Revitalization: The revitalization of an existing fabrication facility in Burlington, Vermont, is expected to commercialize new 200 mm technologies, which would create the first U.S. facility capable of high-volume manufacturing of next-generation Gallium Nitride on Silicon for use in electric vehicles, power grid, 5G and 6G smartphones, and other critical technologies.
  • GF chips are fundamental to everyday applications that impact all Americans, from blind spot detection and collision warnings in cars, to smartphones and electric vehicles that last longer between charges, to secure and reliable Wi-Fi and cellular connections. 
  • The PMT also proposes approximately $10 million in dedicated workforce development funding for GF to work with local workforce, education, training, and community-based organizations to provide GF with the facilities and construction talent they need now and in the future.

CHIPS Incentives application stage: Due diligence  

PMT announced: February 19, 2024

Microchip Technology Inc.

Colorado Springs, Colorado, and Gresham, Oregon 

On January 4, 2024, Under Secretary of Commerce for Standards and Technology and the Director of the National Institute of Standards and Technology Laurie E. Locascio announced that the Department of Commerce and Microchip Technology Inc. have signed a non-binding preliminary memorandum of terms (PMT).  

Key Facts About This PMT:

An icon of a map of Colorado and an icon of a map of Oregon
Credit: CHIPS for America
  • The proposed $162 million in federal incentives would be split across two separate projects:  
    • Approximately $90 million to modernize and expand a fabrication facility in Colorado Springs, Colorado  
    • Approximately $72 million to expand a fabrication facility in Gresham, Oregon 
  • This proposed investment would enable Microchip to significantly increase its U.S. production of microcontroller units and other specialty semiconductors built on mature-nodes critical to America’s automotive, commercial,
  •  industrial, defense, and aerospace industries.  
  • The projects are estimated to nearly triple the share of semiconductors the company produces at these sites, decreasing its reliance on foreign foundries and strengthening supply chain resilience. 

CHIPS Incentives application stage: Due diligence  

PMT announced: January 4, 2024

BAE Systems, InC.

Nashua, New Hampshire 

On December 11, 2023, Secretary of Commerce Gina Raimondo announced that the U.S. Department of Commerce and BAE Systems Electronic Systems, a business unit of BAE Systems, Inc., have signed a non-binding preliminary memorandum of terms.  

Key Facts About This PMT:

An icon of a map of New Hampshire
Credit: CHIPS for America
  • Approximately $35 million in federal incentives provided under the CHIPS and Science Act
  • These incentives will support the modernization of the company’s Microelectronics Center, a mature-node facility in Nashua, New Hampshire
  • This modernization project will replace aging tools and quadruple the production of chips necessary for critical defense programs, including the $1.7 trillion F-35 fighter jet program

CHIPS Incentives application stage: Due diligence 

PMT announced: December 11, 2023 

Application Stages for CHIPS Incentives

  • Statement of interest: A potential applicant is first asked to submit a statement of interest with a brief description of the proposed project(s) so that the Department may plan for review. 
  • Pre-application: Next, a potential applicant may submit an optional pre-application with more detailed information on the proposed project(s). The Department will provide written feedback to the potential applicant, including a recommendation for next steps.   
  • Full application: To be considered for funding, all potential applicants must ultimately submit a full application, which allows the Department to determine whether the project advances U.S. economic and national security and meets other strategic objectives. Before moving into due diligence, the Department will prepare and offer the applicant a non-binding preliminary memorandum of terms (PMT). 
  • Due diligence: If a full application appears reasonably likely to receive an award, and the Department and the applicant agree or foresee agreement on a PMT, the application will enter comprehensive due diligence. 
  • Award preparation and issuance: When diligence is substantially complete, the Department and the applicant will negotiate a long-form term sheet that contains terms more detailed than the PMT. After successfully completing due diligence, the Department will prepare and issue an award, with final award terms expected to be substantially consistent with the long-form term sheet. Awards are expected to be disbursed in tranches tied to project milestone. 
Created December 8, 2023, Updated June 11, 2024