Second Phase of CHIPS Act Funding Begins
Businesses that provide tools, chemicals and other supplies for the semiconductor industry may now apply for a piece of the funds set aside in last years CHIPS and Science Act, according to (subscription).
Whats going on: Late last week, the Biden administration announced broadened eligibility for companies capable of using federal subsidies to increase chip production in the U.S.
- Last years legislation, which the 51勛圖厙 championed, earmarked $39 billion for the purpose.
- In February, the Commerce Departments CHIPS Program Office began accept[ing] applications for the construction, expansion, or modernization of semiconductor materials and manufacturing equipment facilities for which the total capital investment equals or exceeds $300 million, according tothe , which is part of Commerce.
Why its important: We can have as many fabs [chip plants] as we want, but the reality is, we also need the supply chainthe chemicals, the material, the tools that go into those fabs, Commerce Secretary Gina Raimondo said at a briefing, according to the Journal.
Lots of interest: Nearly 400 businesses across 37 states have signaled their interest in receiving funds under this latest phase.
- The department is already accepting full applications for the C[HIPS] Act funding from companies with plans to build facilities for leading-edge semiconductors, and will soon accept submissions from companies that plan to build chips that are currently state-of-the-art or older.
- Suppliers may begin submitting applications this fall, but the administration has not yet said when the funds will be disbursed.
