First CHIPS For America Funding Opportunity Released: What Potential Applicants Should Know

On February 28, the Commerce Department released its first Notice of Funding Opportunity (NOFO) for the CHIPS incentive program. Created by the fiscal year 2021 National Defense Authorization Act (Pub. L. 116-283) and funded through the CHIPS and Science Act (Pub. L. 117-167), the $39 billion incentive program seeks to increase domestic semiconductor manufacturing, maintain America's technological leadership, and promote U.S. economic and national security.¹ While the Commerce Department expects to release several funding opportunities, the first NOFO focuses on leading-edge, current-generation, and mature-node semiconductor technology, including front-end wafer fabrication, back-end packaging, assembly, and testing. It also includes funding for new and specialty semiconductor manufacturing facilities. Additional funding opportunities will be announced for semiconductor materials and manufacturing equipment facilities in late spring 2023 and for R&D facilities in fall