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COMMERCE DEPARTMENT RELEASES RFI RESULTS ON CHIPS PROGRAM

FOR IMMEDIATE RELEASE
Thursday, September 1, 2022
OFFICE OF PUBLIC AFFAIRS

publicaffairs@doc.gov(link sends email)

Report Details Public Recommendations for Supporting a Strong Domestic
Semiconductor Industry

As the U.S. Department of Commerce prepares to announce its high-level strategy
for the $50 billion Creating Helpful Incentives to Produce Semiconductors
(“CHIPS”) for America Fund, in the coming weeks, the agency today released a
summary of responses to a Request for Information (RFI) on incentives,
infrastructure, research and development, and workforce needs to support a
strong domestic semiconductor industry. The RFI and analysis was developed with
support from the National Institute of Standards and Technology (NIST).
Respondents — from small and large companies, government, non-profit and other
sectors — recommended close coordination among programs for maximum impact,
adding a private capital multiplier requirement for the financial assistance
program to maximize impact, and building a skilled workforce.

“The CHIPS and Science Act provides a unique opportunity to expand our domestic
manufacturing capacity, grow the innovation ecosystem and restore U.S.
leadership in semiconductor manufacturing, but this cannot be done by the
federal government alone,” said Secretary of Commerce Gina Raimondo. “We
appreciate all of the invaluable insight we have received and are using it to
develop an open and transparent strategy that will include industry, academia
and all levels of government.”

Sections 9902 and 9906 of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021 authorized semiconductor manufacturing
incentives, R&D and workforce activities, and the recently passed CHIPS and
Science Act funded these programs with the $50 billion CHIPS for America Fund.
The January 2022 RFI sought input on these programs in general and the following
topics specifically:  semiconductor manufacturing incentives program, National
Semiconductor Technology Center (NSTC), National Advanced Packaging
Manufacturing Program, and industry workforce development needs.

The Department received more than 250 responses from various sectors of the
semiconductor supply chain, including design software developers, integrated
device manufacturers, materials suppliers, equipment vendors, and automotive and
consumer companies. Large businesses accounted for 37% of respondents, while
small businesses and nonprofits accounted for 22% and 23%, respectively. The
remaining respondents were from academia, government, national laboratories or
did not self-identify.

Regarding financial incentives, respondents recommended that Commerce support a
diverse set of technologies, from leading edge to more mature technologies, and
require cost-sharing, matching and in-kind funding.

Respondents recommended carefully constructed and clear guidelines around
intellectual property (IP). They also recommend that the research and design
programs, including the NSTC and packaging program, should provide access to
design, modeling, and simulation tools, as well as training for such tools.
Building a skilled workforce was seen as important for all sectors of the
semiconductor ecosystem, specifically by increasing the pipeline of students in
science, technology, engineering, and math (STEM) career paths and in the
semiconductor field by improving partnerships and collaborations between
training institutions and employers.

The full report can be read at CHIPS.gov. The Commerce Department will release
its strategy for the CHIPS Program Office in the coming weeks.

NIST has also released a report highlighting the critical metrology and
characterization needs of the semiconductor industry that will require further
investment in research and development (R&D). The report assembles information
collected through the RFI and a series of workshops and discussions with
industry.

Bureaus and Offices
National Institute of Standards and Technology
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CHIPS Act
Semiconductor Industry


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