Dive brief:
Diving knowledge:
The funding opportunity builds on the department’s announcement in June to expand financing in larger supply chain projects. This program targeted projects with a total capital investment of $300 million or more.
Since announcing this opportunity for larger projects, the Commerce Department has received more than 500 expressions of interest and more than 100 pre-applications and complete applications from companies looking to build semiconductor projects in 42 states, according to the communicated
The smaller projects eligible for funding will produce equipment, chemicals, gases or other materials critical to semiconductor manufacturing in the United States, according to the release.
According to the announcement, supply chain investments, even for smaller projects under $300 million, can help regions build economic resilience, create new pathways to good jobs and bring emerging technological innovation in their communities. According to the Commerce Department, these investments aim to strengthen supply chain resilience, advance US technology leadership and support domestic manufacturing clusters with a reliable ecosystem of suppliers.
To access funding, smaller businesses and projects will need to complete a two-step application process:
- Applicants will be asked to submit a concept plan that describes how the proposed project addresses core strategic objectives, such as US economic and national security. These concept plans will be accepted between December 1, 2023 and February 1, 2024.
- The Department of Commerce will review these initial plans and invite the most promising applicants to submit a full application for CHIPS incentives. Application submission dates for this phase will be communicated individually to applicants once they have been notified of their selection.
“The smaller supply chain projects enabled by this funding will play a crucial role in creating a sustainable US semiconductor ecosystem by providing large chip manufacturing facilities with access to the equipment, materials and supplies needed to boost US domestic manufacturing,” said Commerce Under Secretary for Standards and Technology Laurie Locascio at the launch.
