CHIPS and Science Act An overview of the
Description: CHIPS and Science Act An overview of the CHIPS-plus bill and funding for domestic semiconductor manufacturing July 26, 2022 1 The CHIPS-plus bill includes many of USICAs original priorities SOURCE Axios, Washington Post, The Hill, Senate
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slide1. CHIPS and Science Act An overview of the CHIPS-plus bill and funding for domestic semiconductor manufacturing July 26, 2022 1<br>
slide2. The CHIPS-plus bill includes many of USICA’s original priorities SOURCE Axios, Washington Post, The Hill, Senate Committee on Commerce, Science, and Transportation, Roll Call. Background
After Congress struggled for months to send a version of China competition legislation to the president’s desk, the Biden administration encouraged lawmakers to pass a smaller bill to appropriate $52B to domestic semiconductor manufacturing initiatives that were enacted without funding via the FY2021 NDAA
On July 19, the Senate conducted a “test vote” to approve a 1,000+ page amendment that included—in addition to semiconductor funding—billions of dollars for various science and technology provisions considered critical to national security, many of which had been included in the stalled USICA bill the Senate passed in June 2021 Key Provisions CHIPS Act of 2022
Allocates $52.7 B to support domestic semiconductor manufacturing through financial assistance, research and development (R&D), workforce education programs, and more Science & Technology
Authorizes $102 B over five years to the National Science Foundation (NSF), Department of Commerce (DOC), and the National Institute of Standards and Technology (NIST)
Includes NASA Authorization Act Department of Energy
Grants billions in funding to the Department of Energy (DOE) for research and programs related to energy security, microelectronics, nuclear technologies, and more Outlook
The House and Senate both passed the bill, and it is now headed to President Biden’s desk
A date for the signing ceremony has not yet been set 2<br>
slide3. The CHIPS Act of 2022 allocates over $52B to domestic semiconductor manufacturing initiatives SOURCE Senate Committee on Commerce, Science, and Transportation, CSIS. Funding Overview Background
The US controlled 40% of global semiconductor manufacturing in 1990, but only 12% in 2020
The CHIPS Act of 2022 funds the CHIPS for America Act provisions enacted via the FY2021 NDAA for five years Funded Initiatives Manufacturing Incentives: Provides financial assistance to semiconductor manufacturers to develop US-based facilities and materials R&D: Supports several research programs exploring key areas of chip development, including advanced packaging and microelectronics metrics Defense Fund: Established the DOD Microelectronics Commons to accelerate the inclusion of new research into manufactured products and train staff International Technology Security & Innovation Fund: Expands ICT security and supports semiconductor supply chain operations Workforce & Education Fund: Harnesses NSF work to initiate US-based semiconductor workforce development Public Wireless Supply Chain Innovation Fund: Encourages new technology developments to advance America’s mobile broadband market 3<br>
slide4. The CHIPS Act also sets guidelines for incentives and establishes an investment tax credit SOURCE Senate Committee on Commerce, Science, and Transportation, Washington Post. Manufacturing Incentive Guidelines Creates clear eligibility requirements for suppliers to receive financial assistance via incentives Prioritizes a wide range of semiconductors and their contribution to supply chain vulnerabilities Reserves $2 B of incentive funding for mature semiconductors, prioritizing recipients in related critical industries Prohibits incentive recipients from developing manufacturing capabilities in countries that threaten US national security Advanced Manufacturing Investment
Credit
Establishes a 25% tax credit for investing in semiconductor manufacturing Chip manufacturers are making plans for CHIPS Act funding
Industry giants Intel and TSMC have indicated they plan to use funding to build factories in Ohio and Arizona, and GlobalFoundries is seeking funding to expand a factory in upstate New York
Minnesota’s SkyWater Technology and Purdue University announced plans to use funding to support the construction of a $1.8 B factory and research facility near the Indiana-based university
The American Semiconductor Innovation Coalition, including IBM and the State University of New York at Albany, are looking for funding to build a facility dedicated to semiconductor research in Albany, NY 4<br>
slide5. The CHIPS-plus bill authorizes $102B for NSF, DOC, and NIST for science and technology efforts SOURCE Senate Committee on Commerce, Science, and Transportation. Funding Overview Key Initiatives NSF Directorate for Technology, Innovation, and Partnerships (TIP): Speeds up domestic development of technologies critical to economic and national security, like AI, quantum computing, 6G, and others STEM Workforce Development: Directs $13 B to NSF to fund fellowships, scholarships, and traineeships to educate and develop workers in critical fields DOC Technology Hubs: Creates 20 “regional technology hubs,” distributed geographically, to support innovation, job opportunities, and technological development DOC RECOMPETE Pilot: Coordinates activities to support economic development in “persistently distressed” and underserved communities 5<br>
slide2. The CHIPS-plus bill includes many of USICA’s original priorities SOURCE Axios, Washington Post, The Hill, Senate Committee on Commerce, Science, and Transportation, Roll Call. Background
After Congress struggled for months to send a version of China competition legislation to the president’s desk, the Biden administration encouraged lawmakers to pass a smaller bill to appropriate $52B to domestic semiconductor manufacturing initiatives that were enacted without funding via the FY2021 NDAA
On July 19, the Senate conducted a “test vote” to approve a 1,000+ page amendment that included—in addition to semiconductor funding—billions of dollars for various science and technology provisions considered critical to national security, many of which had been included in the stalled USICA bill the Senate passed in June 2021 Key Provisions CHIPS Act of 2022
Allocates $52.7 B to support domestic semiconductor manufacturing through financial assistance, research and development (R&D), workforce education programs, and more Science & Technology
Authorizes $102 B over five years to the National Science Foundation (NSF), Department of Commerce (DOC), and the National Institute of Standards and Technology (NIST)
Includes NASA Authorization Act Department of Energy
Grants billions in funding to the Department of Energy (DOE) for research and programs related to energy security, microelectronics, nuclear technologies, and more Outlook
The House and Senate both passed the bill, and it is now headed to President Biden’s desk
A date for the signing ceremony has not yet been set 2<br>
slide3. The CHIPS Act of 2022 allocates over $52B to domestic semiconductor manufacturing initiatives SOURCE Senate Committee on Commerce, Science, and Transportation, CSIS. Funding Overview Background
The US controlled 40% of global semiconductor manufacturing in 1990, but only 12% in 2020
The CHIPS Act of 2022 funds the CHIPS for America Act provisions enacted via the FY2021 NDAA for five years Funded Initiatives Manufacturing Incentives: Provides financial assistance to semiconductor manufacturers to develop US-based facilities and materials R&D: Supports several research programs exploring key areas of chip development, including advanced packaging and microelectronics metrics Defense Fund: Established the DOD Microelectronics Commons to accelerate the inclusion of new research into manufactured products and train staff International Technology Security & Innovation Fund: Expands ICT security and supports semiconductor supply chain operations Workforce & Education Fund: Harnesses NSF work to initiate US-based semiconductor workforce development Public Wireless Supply Chain Innovation Fund: Encourages new technology developments to advance America’s mobile broadband market 3<br>
slide4. The CHIPS Act also sets guidelines for incentives and establishes an investment tax credit SOURCE Senate Committee on Commerce, Science, and Transportation, Washington Post. Manufacturing Incentive Guidelines Creates clear eligibility requirements for suppliers to receive financial assistance via incentives Prioritizes a wide range of semiconductors and their contribution to supply chain vulnerabilities Reserves $2 B of incentive funding for mature semiconductors, prioritizing recipients in related critical industries Prohibits incentive recipients from developing manufacturing capabilities in countries that threaten US national security Advanced Manufacturing Investment
Credit
Establishes a 25% tax credit for investing in semiconductor manufacturing Chip manufacturers are making plans for CHIPS Act funding
Industry giants Intel and TSMC have indicated they plan to use funding to build factories in Ohio and Arizona, and GlobalFoundries is seeking funding to expand a factory in upstate New York
Minnesota’s SkyWater Technology and Purdue University announced plans to use funding to support the construction of a $1.8 B factory and research facility near the Indiana-based university
The American Semiconductor Innovation Coalition, including IBM and the State University of New York at Albany, are looking for funding to build a facility dedicated to semiconductor research in Albany, NY 4<br>
slide5. The CHIPS-plus bill authorizes $102B for NSF, DOC, and NIST for science and technology efforts SOURCE Senate Committee on Commerce, Science, and Transportation. Funding Overview Key Initiatives NSF Directorate for Technology, Innovation, and Partnerships (TIP): Speeds up domestic development of technologies critical to economic and national security, like AI, quantum computing, 6G, and others STEM Workforce Development: Directs $13 B to NSF to fund fellowships, scholarships, and traineeships to educate and develop workers in critical fields DOC Technology Hubs: Creates 20 “regional technology hubs,” distributed geographically, to support innovation, job opportunities, and technological development DOC RECOMPETE Pilot: Coordinates activities to support economic development in “persistently distressed” and underserved communities 5<br>