CHIPS for America Week in Review

WHAT THEY ARE SAYING:

Biden-Harris Administration Announces CHIPS Incentives Award with TSMC Arizona

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded TSMC Arizona, a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC) up to $6.6 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award will support the company’s planned investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona.

Here's what they are saying about this historic announcement:

Biden-Harris Administration Leaders

President Joe Biden: “Today’s final agreement with TSMC – the world’s leading manufacturer of advanced semiconductors – will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade. This is the largest foreign direct investment in a greenfield project in the history of the United States. Today’s announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country.” [Statement]

U.S. Secretary of Commerce Gina Raimondo: “The Biden-Harris Administration’s investment in TSMC Arizona is a turning point for American innovation and manufacturing that will strengthen our economic and national security. The leading-edge chips that will be manufactured in Arizona are foundational to the United States’ technology and economic leadership in the 21st century. Because of President Biden and Vice President Harris, the most advanced semiconductor technology on the planet will be made in America, creating thousands of jobs in the process.” [Statement]

Former Administration Officials

Former Secretary of Commerce Wilbur Ross: “I spent two years working with TSMC, Arizona officials and business, and bipartisan officials to make today a possibility. This is one of the most important investments we’ll make to advance our semiconductor economic and national security for decades to come.”

Industry Voices

Lisa Su, Chair and CEO, AMD: “AMD applauds this historic agreement between TSMC and the Department of Commerce. Geographically diverse and resilient semiconductor supply chains are critical to meeting the growing demand for high-performance computing chips. TSMC’s significant U.S. investments will bring leading-edge manufacturing technologies to Arizona that will enable AMD to build our most advanced chips right here in the U.S.”

Tim Cook, CEO, Apple: “We believe the ingenuity and determination of American workers will power the next generation of advanced manufacturing across our country. As part of our deep commitment to investing in America and supporting advanced manufacturing, we are proud to play an important role in TSMC’s U.S. production, and as these facilities come online, we are looking forward to being the biggest customer of chips stamped ‘Made in America.”

Dr. C.C. Wei, CEO, TSMC: “Entering this phase of the U.S. CHIPS and Science Act marks a pivotal step in strengthening the semiconductor ecosystem in the United States. TSMC appreciates the continued collaboration with customers, partners, local communities and the U.S. government beginning in early 2020. The signing of this agreement helps us to accelerate the development of the most advanced semiconductor manufacturing technology available in the U.S.” [Statement]

Members of Congress

U.S. Senator Mark Kelly (AZ): “With this final agreement in place with TSMC, Arizona is set to become one of the world’s key centers for leading-edge microchip manufacturing. For the first time, the advanced microchips that power America’s military and tech innovators will be made here at home. These investments through the CHIPS and Science Act have us on track to double America’s share of the global microchip market by 2030, strengthening national security, bringing supply chains back to the U.S., and creating tens of thousands of good paying jobs, many of which won’t require a four-year degree. This is not only a win for Arizona’s economy, but for our national security and our continue global leadership and competitiveness.” [Statement]

U.S. Senator Kyrsten Sinema (AZ): “I’m proud that our bipartisan CHIPS and Science law led to today’s finalized $6.6 billion award for TSMC – making transformational investments in our state, creating strong Arizona careers, protecting our national security, and strengthening Arizona’s leadership in semiconductor manufacturing.” [Statement]

U.S. Senator Todd Young (IN): “When we passed the CHIPS & Science Act, this was exactly the type of investment we envisioned.

• Increase domestic chip production
• Bring leading-edge chip tech to the U.S. · Create a reliable & secure supply of chips for national security” [Tweet]

U.S. Senator Mark Warner (VA): “Congress originally passed the CHIPS and Science Act because we knew that our national security depended on it. Today’s $6.6 billion investment will help support production of the most advanced chips, used for advanced applications like Artificial Intelligence. This is a win for American workers, for our advanced manufacturing industry, and for the resilience and security of our supply chains.” [Statement]

U.S. Congressman Michael McCaul (TX-10): “I’m pleased to hear news that for the 1st time ever, the U.S. will soon produce the world’s most advanced semiconductor technology to counter our adversaries. These chips will protect our national security, boost U.S. leadership in innovation, and strengthen our supply chain and economy.” [Tweet]

U.S. Congressman Ruben Gallego (AZ-03): “Thanks to our bipartisan CHIPS and Science Act, Arizona continues to see historic investments in cutting-edge semiconductor manufacturing. Today’s finalized award for TSMC will create thousands of good-paying jobs and strengthen our national security. I’m excited to make this announce and look forward to working with TSMC and state and local leaders to ensure its success.” [Statement]

U.S. Congressman Greg Stanton (AZ-04): “It’s exciting to see our economic vision – years in the making – finally coming to fruition. I’ve long said that no state in the country stood to benefit more from the CHIPS and Science Act than Arizona. With this final agreement with TSMC firmly in place, we’re solidifying Arizona’s position as a global leader for state-of-the-art semiconductor manufacturing and creating thousands of good-paying jobs here at home.” [Statement]

State and Local Officials

Governor Katie Hobbs: “The finalization of this historic agreement with TSMC further solidifies Arizona’s place as a leader in the American manufacturing resurgence. Made in America means made in Arizona, and these investments will create thousands of good-paying, family-supporting jobs that are accessible to everyday Arizonans. The chips that will be made here will power our entire country, from smartphones to autonomous vehicles to cutting-edge aerospace and defense equipment, all while increasing America’s overall independence. I am grateful to Senator Kelly and Senator Sinema for their role in negotiating the CHIPS and Science Act, and I look forward to continuing our work to keep Arizonans at the center of our nation’s future.” [Statement]

Mayor Kate Gallego, City of Phoenix: “Today’s announcement is a huge milestone for the City of Phoenix and the entire country. TSMC’s investment in our community will create thousands of great-paying jobs for our residents, boost our local and regional economies, and help secure a critical supply chain of the advanced technology that powers our phones, cars, and so much more. Thanks to the work of Senator Kelly and members of Arizona’s Congressional delegation, the CHIPS Law will advance major technological breakthroughs on U.S. soil and leave generational impacts on Phoenix.” [Statement]

Organizations

John Neuffer, CEO, Semiconductor Industry Association: “We commend the U.S. Department of Commerce and TSMC for working diligently to finalize this agreement, which will expand crucial advanced manufacturing capacity here at home and help promote U.S. leadership in the game-changing technologies of the future. This agreement will strengthen America’s economic and national security, while also creating thousands of construction and manufacturing jobs. We welcome the progress being made to move forward CHIPS incentives and reinforce U.S.-based semiconductor production and innovation. And we look forward to continuing to work with leaders in industry and government to ensure the CHIPS Act delivers maximum benefits for American manufacturing and innovation.” [Statement]

Joe Stockunas, President, SEMI Americas: “We applaud the U.S. Department of Commerce for taking this significant step to enhance the resilience of the domestic semiconductor supply chain with the CHIPS and Science Act award for TSMC,” said Joe Stockunas, President of SEMI Americas. “This award positions the United States to produce the most advanced semiconductor chips at scale, advancing global supply chain stability to meet growing chip demand worldwide in the years ahead across various markets. This grant further demonstrates the positive economic impact and job creation potential of semiconductor manufacturing.” [Statement]

Jason Oxman, President and CEO, Information Technology Council: “Congratulations to ITI member @TSMC on receiving this critical award. This will propel the U.S. development of leading-edge #semicondcutor manufacturing technology, boosting U.S. competitiveness.” [Statement]

Arizona Chamber of Commerce: “Huge news for AZ! TSMC’s CHIPS award secures America’s leadership in advanced semiconductors creates 20K + jobs, and powers AI, 5G, & more – all right here in Phoenix. A big milestone solidifying AZ’s role in global innovation.” [Tweet]

Biden-Harris Administration Announces CHIPS Incentives Award with TSMC Arizona to Secure U.S. Leadership in Advanced Semiconductor Technology

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), up to $6.6 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The award comes after the previously signed preliminary memorandum of terms, announced on April 8, 2024, and the completion of the Department’s due diligence. The award will support the company’s planned investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona. The Department will disburse the funds based on TSMC Arizona’s completion of project milestones.

“Two years ago, shortly after I signed the CHIPS & Science Act, I visited Arizona to announce a commitment by TSMC to invest in America, create American jobs, and shore up American supply chains. On that day, I spoke about how the United States invented semiconductors and used to manufacture nearly 40% of the world’s chips, but now makes closer to 10% of them and none of the most advanced chips. I came to office determined to change that, and we have since delivered on that promise, catalyzing nearly $450 billion in private investment in semiconductors, creating over 125,000 new construction and manufacturing jobs, and reshoring critical technologies to bolster our national and economic security,” said President Joe Biden. “Today’s final agreement with TSMC – the world’s leading manufacturer of advanced semiconductors – will spur $65 billion dollars of private investment to build three state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade. This is the largest foreign direct investment in a greenfield project in the history of the United States. The first of TSMC’s three facilities is on track to fully open early next year, which means that for the first time in decades an America manufacturing plant will be producing the leading-edge chips used in our most advanced technologies – from our smartphones, to autonomous vehicles, to the data centers powering artificial intelligence. Today’s announcement is among the most critical milestones yet in the implementation of the bipartisan CHIPS & Science Act, and demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefitting communities all across the country.”

“The Biden-Harris Administration’s investment in TSMC Arizona is a turning point for American innovation and manufacturing that will strengthen our economic and national security,” said U.S. Secretary of Commerce Gina Raimondo. “The leading-edge chips that will be manufactured in Arizona are foundational to the United States' technological and economic leadership in the 21st century. Because of President Biden and Vice President Harris, the most advanced semiconductor technology on the planet will be made in America, creating thousands of jobs in the process.”

Biden-Harris Administration Announces Preliminary Terms with Akash Systems to Support Development and Production of Emerging Semiconductor Technology

On Wednesday, the Biden-Harris Administration announced that the Department of Commerce and Akash Systems have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $18.2 million in proposed direct funding under the CHIPS and Science Act.

The proposed investment would support the construction of a 40,000 square foot cleanroom space within an existing building to transform it into a facility for semiconductor manufacturing.

This proposed CHIPS funding, together with funding from Akash, venture capital firms, and other private investors, would support a $121 million investment and enable the company to leverage its intellectual property and experience of developing semiconductor technologies that serve important end markets, such as communications and the defense industrial base, while also creating over 400 direct manufacturing and construction jobs.

“A critical part of the success of CHIPS for America is ensuring the United States is a global leader in every part of the semiconductor supply chain,” said U.S. Secretary of Commerce Gina Raimondo. “Through this proposed investment in Akash, we are taking a critical step forward to fulfill that mission. With the support of this proposed funding, the Biden-Harris Administration is helping to accelerate innovation, advance U.S. technology leadership in semiconductor manufacturing, and spur good-paying jobs and increased economic opportunities.”

NSTC Opens Call for Proposal for PFAS Reduction and Innovation in Semiconductor Manufacturing (PRISM) Program

On November 8, 2024, the NSTC opened the Call for Proposal for the PFAS Reduction and Innovation in Semiconductor Manufacturing PRISM). This funding opportunity intends to enhance the environmental sustainability of semiconductor manufacturing by addressing the challenges posed by per- and polyfluoroalkyl substance (PFAS) usage. Bringing greater environmental sustainability to semiconductor manufacturing is critical, but it is also a complex and costly process.

Total program award funding up to $35M with 8-15 awards anticipated. Individual awards are expected to range from $250K to $8M depending on the project complexity and number of task areas addressed.

Eligible applicants include domestic for-profit organizations, non-profit organizations, and accredited institutions of higher education.

Concept Papers are due on December 4, 2024

CHIPS AI/AE for Rapid, Industry-informed Sustainable Semiconductor Materials and Processes (CARISSMA) Funding Opportunity

On October 30, 2024, the Biden-Harris Administration announced a Notice of Funding Opportunity (NOFO) for activities that will use cutting-edge artificial intelligence (AI) and autonomous experimentation (AE) technologies to support the long-term viability of next-generation semiconductor manufacturing. The CHIPS AI/AE for Rapid, Industry-informed Sustainable Semiconductor Materials and Processes (CARISSMA) funding opportunity will be critical in meeting the industry’s technology, economic, and sustainability goals.

Mandatory concept papers are due January 13, 2025.

CHIPS for America hosted a webinar to provide general information regarding this NOFO on November 8^th to offer general guidance on preparing applications, and answer questions. The webinar recording and presentation are now available on CHIPS.gov.

Today, the CHIPS Research and Development Office hosted a hybrid Proposer’s Day event to bring potential applicants together in a collaborative atmosphere to network and support partnerships among the community. The event recording and presentation will be on CHIPS.gov soon.

Mandatory concept papers are due January 13, 2025.

CHIPS for America in the News

Bloomberg: TSMC’s Chips Act Award Finalized by US, With Funds Coming This Year

• Package is the first major Chips Act deal to be completed
• Intel, Samsung and others are still hammering out agreements

[Mackenzie Hawkins and Ian King, 11/15/24]

The Biden administration finalized its Chips Act incentive awards for Taiwan Semiconductor Manufacturing Co., marking a major milestone for a program meant to bring semiconductor production back to US soil.

TSMC will get $6.6 billion in grants as part of the contract, the Department of Commerce said in a statement Friday. Though the amount was disclosed earlier this year as part of a preliminary agreement, the deal is now legally binding — making it the first major Chips Act award to reach this stage.

Axios Phoenix: Biden administration finalizes $6.6 billion TSMC award

[Jessica Boehm, Jeremy Duda, 11/15/24]

The U.S. Department of Commerce finalized its CHIPS and Science Act agreement with Taiwan Semiconductor Manufacturing Co. on Friday, essentially guaranteeing the company will receive $6.6 billion to construct its $65 billion north Phoenix facility.

[...]

What they're saying: "This will be one of the most important investments we make as a country to advance our economic and national security," Commerce Secretary Gina Raimondo said on a press call. "[It's] going to allow us to outcompete and out-innovate the rest of the world."

Reuters: US to award Akash Systems up to $18.2 million for chips production

[Dave Shepardson, 11/13/24]

The U.S. Commerce Department said Wednesday it has agreed to provide up to $18.2 million in government subsidy funding to Akash Systems to support the construction of a 40,000-square-foot cleanroom space for advanced semiconductor manufacturing.

This proposed funding from the $52.7 billion semiconductor manufacturing and research subsidy program, will be combined with funding from California-based Akash, venture capital firms, and other private investors, to support a $121 million investment in West Oakland, California to manufacture various Diamond Cooling substrates, devices and systems at scale.

Akash is utilizing its "Diamond Cooling" technology to improve thermal management with AI-focused data centers.

"As a U.S. company developing next-generation semiconductor technology, this validates our vision and strategy, helping us to deliver cutting-edge solutions that address thermal challenges in today's high-performance computing and communication systems," Akash Systems CEO Felix Ejeckam said in a statement.

About CHIPS for America  

CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.