CHIPS for America Week in Review

Biden-Harris Administration Announces CHIPS Incentives Award with Intel to Advance U.S. Leading-Edge Chip Capacity and Create Tens of Thousands of Jobs

On November 26, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded Intel Corporation up to $7.865 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.

The award follows the previously signed preliminary memorandum of terms, announced on March 20, 2024, and the completion of the Department’s due diligence. The award will directly support Intel’s expected U.S. investment of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan.

WHAT THEY ARE SAYING:

Biden-Harris Administration Leaders

U.S. Secretary of Commerce Gina Raimondo: “The CHIPS for America program will supercharge American innovation and technology and make our country more secure – and Intel is playing an important role in the revitalization of the U.S. semiconductor industry through its unprecedented investments across Arizona, New Mexico, Ohio, and Oregon. Thanks to the leadership of President Biden and Vice President Harris, our CHIPS award is enabling Intel to drive one of the most significant semiconductor manufacturing expansions in U.S. history.” [Statement]

Members of Congress

Sen. Martin Heinrich (D-NM): “NEWS: Today the NM Congressional Delegation & @CommerceGov are announcing $500 million from our CHIPS & Science Act to @Intel’s Rio Rancho facility. This investment will support 1,800 manufacturing jobs & 2,500 construction jobs – careers New Mexicans can build families around.” [Tweet] 

Rep. Troy Balderson (R-OH-12): “When Intel announced plans nearly three years ago to establish a new home in central Ohio, they pledged to become part of our thriving communities and to create life-changing opportunities for Ohio workers. With the enactment of the CHIPS and Science Act in August 2022, the federal government was tasked with providing essential grants to support Intel’s record-breaking private sector investment. Today’s long-awaited announcement is a key step in ensuring that both Intel and the federal government fulfill their promises and commitments to my constituents. Falling further behind in chip manufacturing is a national security risk that we just can’t afford. We must ensure that these funds are quickly invested to address the serious business of American competitiveness.” [Statement] 

Sen. Mark Kelly (D-AZ): “Intel’s finalized agreement marks another transformative step for Arizona in global semiconductor manufacturing. These historic investments will accelerate Intel’s leadership in Artificial Intelligence and next generation computing, bolstering America’s position in microchip innovation and national security, while creating thousands of good-paying jobs.” [Statement] 

Sen. Kyrsten Sinema (I-AZ): “I was proud to lead our bipartisan CHIPS and Science Act into law – directly fueling Intel’s finalized investment in Arizona – building lasting careers for Arizona families and ensuring Arizona continues to lead our country into the future.” [Statement] 

Rep. Ruben Gallego (D-AZ-3): “Our bipartisan CHIPS and Science Act continues to deliver for Arizona. Today’s announcement cements the Valley of the Sun as the national hub for semiconductor manufacturing and will create thousands of new, good-paying jobs – many of which do not require a four-year degree.” [Statement] 

Rep. Greg Stanton (D-AZ-4): “I proudly championed the CHIPS and Science Act in the House because I knew no state in the country stood to benefit more than ours. Arizona has become a global hub for semiconductor manufacturing – anchored by Intel for more than 40 years. This finalized agreement starts the next chapter for Intel in the East Valley, and will bring even more investment and high-wage, high-tech jobs to our region.” [Statement] 

Rep. Mike Carey (R-OH-15): "Relying on China to manufacture critical technology is a national security risk that we cannot take. We can close the gap in computer chip manufacturing right here at home, with good-paying jobs that help Ohioans thrive. That's why we supported the CHIPS and Science Act in Congress. Today's announcement shows us that when we invest in American manufacturing, we can protect our nation's security as well as the livelihoods of working Ohioans." [Statement]

State and Local Officials

Arizona Governor Katie Hobbs: “Intel has been a foundational partner in building Arizona’s leading semiconductor ecosystem over the past five decades, and a pillar of our booming economy of today. The finalization of Intel’s agreement signifies the next chapter in our partnership and Intel’s legacy in Arizona. With this funding, Intel will expand its footprint in the state, adding to our already significant role in powering the nation’s advanced manufacturing renaissance and strengthening national security. These investments also mean more than 10,000 good-paying, family-sustaining jobs for everyday Arizonans. Thank you to Senator Kelly and Senator Sinema for making sure Arizonans were at the center of the CHIPS and Science Act, and as Governor I will continue to make sure these investments benefit communities across the state.” [Statement]

Chandler Arizona Mayor Kevin Hartke: “Chandler is proud to be the home of Intel’s cutting-edge semiconductor manufacturing. This announcement reinforces Chandler’s role as a global hub for semiconductor innovation and serves as a testament to the strength of our educational system, workforce, physical infrastructure and our partnership with Intel in establishing Chandler as a leader in the semiconductor industry.” [Statement]

Ohio Governor Mike DeWine: “Today’s announcement that Intel-Ohio is receiving CHIPS Act funding is a much-needed step forward in the important objective of making the most advanced computer chips in America. The DeWine-Husted Administration has never wavered in its pledge to bring these chip manufacturing plants to Ohio. The world to build the Silicon Heartland now moves forward with even more certainty, advancing our economic and national security to the benefit of the working people of Ohio and America. [Tweet]

Columbus Ohio Mayor Andrew Ginther: “ The CHIPS and Science Act has already proven itself to be a gamechanger for American cities, and this latest investment will further accelerate domestic production in emerging industries that will continue to create high-paying jobs throughout the nation and across Central Ohio while expanding pathways to opportunity through funding support for equity, education and child care for the very people who aspire to work in these fields. I applaud the Biden-Harris administration for their steadfast commitment to building an economy that works for all Americans and positioning this country, and our region, as a global leader in advanced microchip production.” [Tweet]

Organizations:

Pat Gelsinger, CEO, Intel Corporation: “With Intel 3 already in high-volume production and Intel 18A set to follow next year, leading-edge semiconductors are once again being made on American soil. Strong bipartisan support for restoring American technology and manufacturing leadership is driving historic investments that are critical to the country’s long-term economic growth and national security. Intel is deeply committed to advancing these shared priorities as we further expand our U.S. operations over the next several years.” [Statement]

John Neuffer, President and CEO, Semiconductor Industry Association: “The CHIPS Act incentives finalized today will help spur Intel’s massive investments in domestic chip production, advanced packaging, and innovation, while also strengthening America’s economy, job creation, global competitiveness, and supply chain resilience. We commend Intel for investing ambitiously in these projects and applaud the Commerce Department for advancing the critical CHIPS manufacturing incentives and R&D investments.” [Statement]

Joe Stockunas, President, SEMI Americas: “SEMI congratulates Intel and the U.S. Department of Commerce on this CHIPS Act award for over $7 billion in direct funding to bolster the domestic semiconductor supply chain and technology innovation. This public-private collaboration to advance semiconductor manufacturing is also a substantial investment in creating manufacturing jobs in Intel’s Arizona, New Mexico, Ohio and Oregon sites. We’re proud to support the semiconductor industry’s growth with the SEMI Foundation workforce development programs that are helping to attrack and train talent – the lifeblood of chip innovations.” [Statement]

Arizona Chamber of Commerce: “Big news for Arizona and the future of U.S. manufacturing! @intel’s #CHIPS award supports a $90 BILLION investment across 4 states – including AZ – creating 10K + jobs, strengthening supply chains, and securing U.S. leadership in tech, AI, and defense.” [Tweet]

Biden-Harris Administration Announces CHIPS Incentives Awards with BAE Systems, Inc., and Rocket Lab to Expand Production of Chips Critical for U.S. National Security and Space Industry

On November 25, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce has finalized two separate awards under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.

The Department awarded BAE Systems Electronic Systems, a business unit of BAE Systems, Inc., up to $35.5 million in direct funding, and awarded Rocket Lab, the parent company of space power provider SolAero Technologies Corp., up to $23.9 million in direct funding.

The awards come after the previously signed preliminary memoranda of terms, announced on December 11, 2023, and June 11, 2024, respectively, and the completion of the Department’s due diligence. The Department will disburse the funds based on the companies’ completion of project milestones.

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.

On November 15th, 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 are available on CHIPS.gov.

Mandatory concept papers are due January 13, 2025.

CHIPS for America in the News

Oregon Public Broadcasting: Intel wins more than $1.8 billion in federal funding for Hillsboro campus

Overall the semiconductor firm was awarded nearly $8 billion for projects in Oregon, Arizona, New Mexico and Ohio

[Kyra Buckley, 11/26/24]

Major chipmaker Intel will get more than $1.8 billion in federal funding to upgrade parts of its campus in Hillsboro, the U.S. Department of Commerce announced Tuesday.

Overall the company is being awarded nearly $8 billion in CHIPS Act funding. Congress passed the CHIPS Act in 2022 to spark domestic development and production of semiconductors, or computer chips, that power the electronics that have become critical to daily life.

“Because of our grant to Intel, they plan to mass fabricate their most advanced leading-edge logic nodes in Arizona and Ohio, they plan to conduct advanced packaging at scale in New Mexico, and fortify critical domestic research, development and technology capacity in Oregon,” U.S. Commerce Secretary Gina Raimondo told reporters. “That means American design chips being manufactured and packaged by American workers in the United States by an American company for the first time in a very long time.”

Reuters: US finalizes awards to BAE Systems, Rocket Lab for semiconductor chips

[David Shepardson, 11/25/24]

WASHINGTON, Nov 25 (Reuters) - The U.S. Commerce Department said on Monday it is finalizing nearly $60 million in government subsidies for BAE Systems to build chips used in jets and satellites, and for Rocket Lab to build compound semiconductors used in satellites and spacecraft.

The department is finalizing $35.5 million to BAE to quadruple production in New Hampshire for key semiconductor chips used in F-35 fighter jets and commercial satellites. The investment will cut the company’s planned modernization timeline in half, Commerce said.

The Pentagon plans to spend $1.7 trillion on the F-35 program including buying 2,500 planes in the coming decades. The chips are critical to F-15s and F-35s.

ICYMI: CHIPS R&D Standards Workshops Summary

The CHIPS Research and Development (R&D) Office published a summary report for two events it convened with the semiconductor standards community. The CHIPS R&D Chiplets Interfaces Technical Standards Workshop and the CHIPS R&D Digital Twin Technical Standards Workshop brought together participants from industry, academia, standards setting/development organizations (SSOs /SDOs), industry alliances, and government to discuss the potential for chiplet-based architectures and digital twin applications, respectively, to drive progress in the semiconductor industry. These convenings also emphasized the role of standards in enabling innovation. Through the workshop discussions, participants identified standards opportunities in these technical areas and made broad recommendations for the semiconductor standards community, which are detailed in the new report.

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.