CHIPS for America Week in Review

Biden-Harris Administration Announces CHIPS Incentives Awards with Absolics and Entegris to Support Development of Advanced Packaging Technology and Onshore Material for Leading-Edge Chip Production

On December 5, 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 Absolics, an affiliate of the Korea-based SKC, up to $75 million in direct funding, and awarded Entegris up to $77 million in direct funding. The awards come after the previously signed preliminary memoranda of terms, announced on May 23, 2024, and June 26, 2024, respectively, and the completion of the Department’s due diligence. The Department will distribute the funds based on the companies’ completion of project milestones. 

WHAT THEY ARE SAYING:

Biden-Harris Administration Leaders

U.S. Secretary of Commerce Gina Raimondo: “The Biden-Harris Administration’s investments in Absolics and Entegris are another example of how we are making investments up and down the semiconductor supply chain to advance U.S. economic and national security. As a result of these investments, the states of Colorado and Georgia will play an important role in revitalizing the U.S. semiconductor industry while creating thousands of jobs in the process.” [Statement]

Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie Locascio: “Creating a broad-based advanced packaging ecosystem is crucial to the success of revitalizing the U.S. semiconductor industry and this all begins with substrates. Supporting innovation of the substrate can improve performance and reduce power needs in advanced packaging technologies which are critical to the needs of artificial intelligence capabilities and high-performance compute.” [Statement]

Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy Arati Prabhakar: “Today’s announcement shows how we’re putting President Biden’s CHIPS and Science Act to work. These new facilities will develop cutting-edge technologies that are essential to U.S. semiconductor leadership. And that means that as they create good-paying jobs that support families, they will be bolstering our national security and strengthening our economy.” [Statement]

Chief Economist of the Investing in America Cabinet Heather Boushey: “Since Day One of this Administration, President Biden has committed to growing the economy from the middle-out and bottom-up. He passed historic legislation to invest in America – the American Rescue Plan, the Bipartisan Infrastructure Law, the Inflation Reduction Act, and the CHIPS and Science Act – rebuilding our infrastructure, lowering costs, and creating opportunities for families, workers, and businesses. This new agreement with Absolics is going to help us meet the demand for the technology of tomorrow while supporting good-paying jobs in Georgia today.” [Statement]

Industry Voices

Absolics CEO Jun Rok Oh: “With the support of this proposed CHIPS funding, Absolics would be able to fully commercialize our pioneering glass substrate technology for use in high-performance computing and cutting-edge defense applications. This effort is an important component of establishing a robust semiconductor advanced packaging ecosystem in the State of Georgia and restoring the U.S.’s leadership in semiconductor industry. Our new facility in Covington will not only enhance our ability to produce high-quality glass substrates but also create high-skilled jobs and drive innovation through our partnership with Georgia Tech. Absolics is proud to contribute to the resilience and competitiveness of the American semiconductor industry.” [Statement]

Entegris President and Chief Executive Officer Bertrand Loy: “We are pleased to receive this important funding to help strengthen the U.S. semiconductor industry infrastructure. This further expands our ability to meet the critical needs of our customers while contributing back to the local economy in Colorado Springs.” [Statement]

Semiconductor Industry Association: “These CHIPS incentives will strengthen the domestic semiconductor supply chain, create jobs, and reinforce America’s economic and national security. The incentives for Absolics will support the company’s construction of a 120,000 square-foot facility in Georgia and the development of substrates technology for use in semiconductor advanced packaging. The incentives for Entegris will support the company’s construction of a state-of-the-art facility in Colorado for products critical to the future of semiconductor manufacturing in the U.S. We applaud both companies and the Commerce Department for advancing these critical CHIPS investments.” [Statement]

Members of Congress

U.S. Senator Jon Ossoff (D-GA): “This is a great day for Georgia's economic development. When we set out to pass the bipartisan Chips Act through Congress, it was with this exact goal in mind. This historic Federal investment will create Georgia jobs, support U.S. national security, and bring more advanced manufacturing to our state. I thank President Biden, Vice President Harris, Secretary Raimondo, and Undersecretary Secretary Locascio for their continued collaboration as we lead Georgia forward.”

U.S. Senator Michael Bennet (D-CO): Thanks to the CHIPS & Science Act, we're bringing the semiconductor industry back to America – and more economic opportunity to Colorado. This $77M for Entegris will create jobs and help our state continue to lead the way in advanced manufacturing. [Post]

U.S. Representative Hank Johnson (D-GA-04): My vote for the CHIPS & Science Act helped secure $75M for Absolics to create critical semiconductor chips right here in GA, not only creating faster & more efficient computers, but creating good-paying jobs in #GA04; making the U.S. a global leader in advanced manufacturing. [Post]  

Biden-Harris Administration Announce Preliminary Terms with Coherent, SkyWater, and X-Fab to Advance U.S. Supply Chain Security

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce signed three separate preliminary memoranda of terms (PMT) under the CHIPS and Science Act to provide up to $33 million in proposed direct funding to Coherent, up to $16 million in proposed direct funding to SkyWater Technology Foundry Inc., and up to $50 million in proposed direct funding to X-Fab.

The proposed investment in Coherent would support the expansion and modernization of the company’s existing facility in Sherman, Texas and is expected to support approximately 70 direct jobs. The proposed investment in SkyWater would support the modernization of its existing facility in Bloomington, Minnesota and is expected to create approximately 70 jobs. The proposed investment in X-Fab would support the modernization and expansion of its existing silicon carbide fab in Lubbock, Texas and is expected to create up to an estimated 150 jobs.

WHAT THEY ARE SAYING:

Biden-Harris Administration Leaders 

U.S. Secretary of Commerce Gina Raimondo: “The Biden-Harris Administration’s bipartisan CHIPS and Science Act is making targeted investments to meet market demands for technology critical to our national and economic security. Today’s proposed investments across Texas and Minnesota would help bolster domestic chip production and help secure our supply chain for decades to come.” [Statement]

National Economic Advisor Lael Brainard: “Today’s three semiconductor announcements recognize that America’s innovative edge is rooted in communities like Sherman and Lubbock, Texas and Bloomington, Minnesota. The President and Vice President’s CHIPS & Science Act is creating jobs, supporting small businesses, and securing the resilience of our supply chains all throughout the United States.” [Statement]

Industry Voices

Chief Strategy Officer and President, Materials Segment, for Coherent Dr. Giovanni Barbarossa: “This proposed investment allows Coherent to accelerate its industry leadership in InP technology and manufacturing. We are very excited for this opportunity to accelerate the delivery of world-class optoelectronic products that will enable America’s economic future.” [Statement]

SkyWater CEO Thomas Sonderman: “We are pleased to receive this important proposed CHIPS funding, including the Advanced Manufacturing Investment Tax Credit to expand our nation’s onshore capacity. We’ve been the beneficiary of many government program awards over the past several years, and we’re proud of our role in helping to expand the domestic microelectronics infrastructure and strengthen the U.S. supply chain. As America’s Trusted Foundry, through our business model and expanding capabilities, we are creating a national asset for technology development, which is in a critical state domestically. We have been working to meet the specific needs of the Defense Industrial Base and commercial companies developing the technologies of the future. The proposed investments today are another milestone along this path.” [Statement]

CEO of X-FAB Texas Rico Tillner: “The demand for silicon carbide technologies will be strong for the long term, and we are proud to provide solutions that support the transition to electric mobility and renewable energy sources. X-FAB Texas' silicon carbide technologies are leading in quality and yield and provide a long-term perspective for the site. The proposed CHIPS funding will support the future success of X-FAB Texas and will contribute to the establishment of a domestic supply chain for silicon carbide.” [Statement]

Semiconductor Industry Association: “The CHIPS Act investments announced today will reinforce U.S. supply chains for current-generation and mature-node semiconductors, thereby helping to strengthen America’s economic and national security. We applaud Coherent, SkyWater, and X-FAB for investing ambitiously in the domestic semiconductor ecosystem, and we applaud the Commerce Department for advancing these important incentives.”  [Statement]

Members of Congress

U.S. Senator Amy Klobuchar (D-MN): “If we want to continue leading the global economy, we must be a country that makes stuff, invents things, and exports to the world. This significant investment in SkyWater Technology will transform domestic semiconductor manufacturing. I’m proud to have worked with SkyWater Technology to secure the resources needed to ensure Minnesota remains at the forefront of technological innovation. This is good for our state’s workers and businesses.” [Statement]

U.S. Senator Tina Smith (D-MN): “Modern life depends on semiconductor chips. Whether it’s your car, your coffeemaker, your medical devices, or the equipment that our National Guard members rely on. This investment in SkyWater will make sure these chips aren’t just made in America, it’ll make sure they’re made right here in Minnesota.” [Statement]

Closing Soon: Applications for the NSTC Technical Advisory Board (TAB)

To support the NSTC, Natcast is establishing a Technical Advisory Board (TAB) comprised of key stakeholders spanning the semiconductor ecosystem. The advisory board will provide strategic guidance, expertise, and advice to Natcast in shaping and guiding the NSTC Technical Research Agenda through the ever-evolving technical landscape.

The deadline for TAB nominations is Sunday, December 15, at 11:59pm ET.

CHIPS Metrology Project Updates 

The CHIPS Metrology Program continues to build partnerships between researchers and industry to address the microelectronics industry’s grand challenges. Recently, the program kicked off 8 new projects. In total, CHIPS for America has funded over $210 million across over 55 projects that are helping to develop new instruments, methods, data analysis, and models and simulations. More projects will be announced in the coming months. 

Projects launched by the CHIPS Metrology Program can be found here. The page will continue to be updated with additional projects.

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

Lubbock Avalanche-Journal: Lubbock X-Fab could receive $50 million in federal funds, create 150 jobs

[Alana Edgin, 12/6/24]

Up to $50 million in federal funding and 150 jobs could be added to Lubbock's X-Fab facility, the U.S. Department of Commerce announced this week.

The Biden-Harris Administration announced that the U.S. Department of Commerce has signed a preliminary memoranda of terms (PMT) with X-Fab under the CHIPS and Science Act. The PMT states that X-Fab could receive up to $50 million in direct funding, which would help expansion and modernization of the silicon carbide foundry facility and create an estimated 150 jobs.

Dayton Daily News: CHIPS Act funding released to Intel for Ohio plants, jobs

[Thomas Gnau, 11/26/24]

Intel is getting the federal funding the company says it needs to build Columbus-area semiconductor fabrication plants.

The Biden administration announced that the U.S. Department of Commerce awarded Intel up to $7.865 billion in direct funding under the CHIPS incentives program for commercial fabrication facilities.

The award will support Intel’s expected Columbus-area investment of nearly $90 billion by the end of the decade, which is part of the company’s overall $100+ billion expansion plan, the administration said. The government said it will disburse funds based on Intel’s completion of project “milestones.”

State leaders have advocated for the funds for months.

ABC 5 Cleveland: Ohio’s Intel plant moving forward with long-awaited CHIPS Act funding

[Morgan Trau, 11/26/24]

Ohio's Intel plant is finally receiving its long-awaited $1.5 billion in federal funding, ending the two-year-long stalemate from the company's groundbreaking ceremony. The facility will be operational by 2030, according to the U.S. Department of Commerce.

On Tuesday, the Biden-Harris Administration announced that Intel has been approved to get roughly $8 billion, with $1.5 billion in direct funding for their Central Ohio project.

The company promised the Buckeye State at least $20 billion for a semiconductor manufacturing plant that would create tens of thousands of jobs. Yet thousands of union workers have been waiting to continue construction.

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.