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ARTICLE · 07 MARCH 2023

CHIPS…and Some Surprising Dips: CHIPS For America Funding Announced

The U.S. Department of Commerce's National Institute of Standards and Technology issued the much-anticipated Phase I CHIPS for America funding guidance on Tuesday, February 28.

United StatesGovernment, Public Sector

The U.S. Department of Commerce's National Institute of Standards and Technology issued the much-anticipated Phase I CHIPS for America funding guidance on Tuesday, February 28. While there is great opportunity for funding, there were some surprises as well.

The first CHIPS funds provide manufacturing incentives to reestablish an American semiconductor manufacturing industry, in an effort to dramatically curtail dependence on China for a predictable semiconductor supply chain. This initiative is a strong economic driver, but perhaps more important, it is a national security imperative. As part of the bipartisan CHIPS and Science Act, the Department of Commerce is overseeing $50 billion to revitalize the U.S. semiconductor industry, including $39 billion in semiconductor incentives.

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