This document describes the U.S. Department of Commerce’s implementation strategy for the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Fund, a $50 billion investment to catalyze long-term growth in the domestic semiconductor industry in support of our national and economic security.
The Department of Commerce (the “Department”) has identified four strategic goals for the CHIPS for America Fund:
- Invest in U.S. production of strategically important semiconductor chips, particularly those using leading-edge technologies.
- Assure a sufficient, sustainable, and secure supply of older and current generation chips for natural security purposes and for critical manufacturing industries.
- Strengthen U.S. semiconductor research and development (R&D) leadership to catalyze and capture the next set of critical technologies, applications, and industries.
- Grow a diverse semiconductor workforce and build strong communities that participate in the prosperity of the semiconductor industry.
These objectives go beyond supporting the construction of a few semiconductor manufacturing facilities, or “fabs.” Over the long term, the CHIPS for America Fund must enable and sustain a vibrant domestic industry that supports quality jobs, a diverse workforce, and a robust supplier base of large and small firms, while revitalizing high-volume semiconductor manufacturing, renewing U.S. strengths in design, materials, and process innovation, and benefiting the broader economy. Achieving these goals will require new thinking and partnerships from policymakers and the private sector to unlock the productive capacity of industry, workers, and communities. This document describes the principles that will guide the Department’s program design, the industry context in which the CHIPS for America Fund will operate, the distinct initiatives within the Fund, and some considerations for future applicants for CHIPS funding that require long-term preparation.