CHIPS for America Week in Review

Biden-Harris Administration Announces Preliminary Terms with Bosch to Advance U.S. Supply Chain Resiliency of Crucial Semiconductor Manufacturing Components

Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and Bosch have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $225 million in proposed direct funding under the CHIPS and Science Act.

The proposed investment would support Bosch’s planned investment of $1.9 billion to transform its manufacturing facility in Roseville, California, for production of silicon carbide (SiC) power semiconductors. This proposed direct funding would support the expansion of their largest SiC device factory globally for Bosch, which would significantly increase the company’s production capacity and create up to 1,000 construction jobs and up to 700 manufacturing, engineering, and research and development jobs in California. 

Department of Commerce Awards CHIPS Incentives to Micron for Idaho and New York Projects and Announces Preliminary Memorandum of Terms for Virginia DRAM Project to Secure Domestic Supply of Legacy Memory Chips

On December 10, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded Micron Technology up to $6.165 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 April 25, 2024, and the completion of the Department’s due diligence. This funding will support the first step in Micron’s two-decade vision to invest approximately $100 billion in New York and $25 billion in Idaho, which will create approximately 20,000 jobs and will help the U.S. grow its share of advanced memory manufacturing from less than 2% today to approximately 10% by 2035. The Department will disburse the funds based on Micron’s completion of project milestones.

In addition, the Biden-Harris Administration announced the Department of Commerce has signed a non-binding Preliminary Memorandum of Terms (PMT) with Micron Technology for up to $275 million in proposed funding to expand and modernize its facility in Manassas, Virginia.

WHAT THEY ARE SAYING:

Vice President Kamala Harris: "The spirit of innovation is central to who we are as Americans. America invented the semiconductor, the building blocks of the technology of today and tomorrow. Through our CHIPS and Science Act, President Biden and I have made the historic investments necessary to ensure semiconductor manufacturing returns to and remains here in America. Today, thanks to our historic legislation, the Department of Commerce has finalized one of its largest awards to date with Micron Technology, the only U.S. based manufacturer of memory chips. This more than $6.1 billion investment in Clay, NY and Boise, ID supports the construction of several state-of-the-art memory chips facilities as part of Micron’s total $125 billion investment over the next few decades, creating at least 20,000 jobs by the end of the decade. These investments will help the U.S. grow its share of advanced memory manufacturing from nearly 0% today to 10% over the next decade. I am also proud to say that Micron is building these facilities by utilizing project labor agreements and registered apprenticeship programs, which will further strengthen local economies, support workers, and ensure the construction is completed on time and within budget. Additionally, the Department of Commerce announced that it agreed to preliminary terms with Micron for an additional $275 million investment to expand Micron’s Manassas, VA facility and onshore a critical technology relied upon by our defense industry, automotive sector, and national security community. Our administration knows these landmark announcements are more than investments; they are catalysts for sustained economic growth. When President Biden and I took office, supply chain disruptions led to chips and semiconductor shortages. That is why we worked with Republicans, Democrats, and Independents in Congress to pass legislation to make these unprecedented investments that are creating opportunity in red and blue states alike. At the same time, our work has bolstered our national and economic security by promoting the domestic creation of the chips that are responsible for powering nearly every device Americans rely on – from smartphones and vehicles to advanced defense systems and artificial intelligence data centers. This work will make a lasting difference for decades to come and proves that in the competition for the 21st century, we can invest in American industries and American workers at the same time.” [Statement]

U.S. Secretary of Commerce Gina Raimondo: “Memory chips are foundational to all advanced technologies, and thanks to the bipartisan CHIPS and Science Act, America is rebuilding its capacity to produce these critical capabilities. With this investment in Micron, we are delivering on one of the core objectives of the CHIPS program – onshoring the development and production of the most advanced memory semiconductor technology, which is crucial for safeguarding our leadership on artificial intelligence and protecting our economic and national security.” [Statement]

Micron President and CEO Sanjay Mehrotra: “As the only U.S.-based manufacturer of memory, Micron is uniquely positioned to bring leading-edge memory manufacturing to the U.S., strengthening the country’s technology leadership and fostering advanced innovation. Micron’s investments in domestic semiconductor manufacturing capabilities, supported by the bipartisan CHIPS Act, will help drive economic growth and ensure that the U.S. remains at the forefront of technological advancements. We appreciate New York’s Green CHIPS legislation and the local partnership with Micron to create a Community Investment Framework to revitalize central New York. Many federal, state and community leaders have played a pivotal role in the process, from the development of Micron’s plans to finalizing essential investment tax credits. These include New York Governor Kathy Hochul, Senate Majority Leader Chuck Schumer, U.S. Senator Mark Warner, U.S. Senator Mike Crapo, U.S. Senator James Risch, Idaho Governor Brad Little, Virginia Governor Glenn Youngkin, Mayor Lauren McLean, and County Executive Ryan McMahon. Their contributions support Micron's continued industry leadership as we work to meet the growing demand for memory.” [Statement]

U.S. Senator Chuck Schumer (D-NY): “Micron’s CHIPS funding is locked for Upstate NY. $6.1 billion from my bipartisan CHIPS & Science Law is now secured for Micron to build its new, state-of-the-art complex of memory chip fabs in Central NY and Idaho. A historic day and historic agreement for Upstate NY and America. This final award locks in the federal investment Micron needs for shovels to be able to hit the ground and create thousands of good-paying jobs here in Upstate NY. Without my bipartisan CHIPS & Science Law none of this would be happening and America would be over reliant on semiconductors from overseas. The memory chips Micron makes are the bedrock of America’s future, from AI to EVs to smartphones, as well as our most sensitive defense technology. The signed CHIPS award is the start of a new chapter for Central NY and America. Today the feds make the bold investment needed to bring manufacturing back, to strengthen our national security, and to make sure America stays #1, with Micron and Central NY leading the way.” [Statement]

Biden-Harris Administration Seeks Input on Strengthening Domestic Supply Chains for American-Made Semiconductors through Federal Procurement

Two years ago, President Biden signed into law the CHIPS and Science Act which made historic investments in American semiconductor manufacturing to reestablish the United States’ leadership in semiconductor manufacturing, shore up global supply chains, and address national and economic security vulnerabilities. As part of President Biden’s and Vice President Harris’s plan to ensure a future Made in America, the Office of Management and Budget (OMB) is working to help the Federal Government – the world’s largest buyer – begin organizing its demand for American-made semiconductors so that agencies can limit over-reliance on foreign countries for critical components.

As part of these efforts, today, OMB is releasing a Request for Information (RFI) to gauge the best ways to incentivize government contractors, especially of commercial IT products and services, to scale up their use of domestically manufactured chips.  The RFI may inform follow-on actions in support of the government-wide effort to leverage our existing manufacturing capacity as well as domestically manufactured chips and components in the future.  America invented the semiconductor, and now we are on track toward revitalizing our domestic semiconductor manufacturing industry – helping ensure more chips are made in America by American workers.

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 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

Semafor: Top Biden science and tech official on Trump, China and a ‘CHIPS 2.0’

[Morgan Chalfant, 12/13/24]

U.S. Undersecretary of Commerce Laurie Locascio has some advice for the incoming Trump administration on her way out: Don’t stop funding semiconductor research and development.

“I really do hope that they see the value that this will bring to the country,” Locascio told Semafor. “The R&D is so essential to our future, I would say, as a global economic superpower because we have to feed that next American invention.”

She also warned congressional Republicans against cuts to science agencies as they debate trimming the size of government, especially in light of China’s own investments in the sector. 

BoiseDev: With Biden term ending, Micron secures $6.2 billion in federal CHIPS money

[Don Day, 12/10/24]

The federal government formally announced it would award Boise-based Micron Technology with $6.2 billion in funding through the CHIPS Act.

The amount is slightly higher than the initial award, and will include an additional $275 million to expand the company’s facility in Virginia, as well as investments in new projects at its home campus in Boise and a new facility near Syracuse, New York.

Micron stumped hard for passage of the 2022 CHIPS Act, which provided funding for a number of projects, including those to onshore the production of memory chips. Micron once made all of its chips in the United States, but starting in the late 1990s, began to move production to foreign soil. The Boise facility currently serves largely as a research and development plant, as well as corporate office functions.

Micron, which has already started construction on the Boise expansion, said it will spend $25 billion in Boise through the end of the decade, adding more than 10,000 jobs.

Albany Times Union: Feds finalize $6.16 billion in CHIPS funding for Micron

[Larry Rulison, 12/10/24]

ALBANY — The U.S. Commerce Department said Tuesday it had finalized a nearly $6.2 billion grant package for Micron Technology, the Idaho memory chipmaker that has plans to build a $100 billion fabrication campus in suburban Syracuse.

Preliminary terms of the massive incentive package, funded by the $52 billion CHIPS and Science Act, were announced in April. The federal money will also offset Micron’s costs for $25 billion to expand its manufacturing in Idaho as well.

After November’s elections, the Biden administration — at the urging of U.S. Sen. Charles Schumer, the author of the CHIPS law — has moved swiftly to make the deals legally binding before President-elect Donald Trump takes office in January.

“This final award locks in the federal investment Micron needs for shovels to be able to hit the ground and create thousands of good-paying jobs here in upstate New York,” Schumer said in a statement.

San Francisco Chronicle: Tech company secures $225 million for Northern California chip plant, generating 700 jobs

[Roland Li, 12/13/24]

German tech company Bosch has signed a preliminary agreement with the federal government for $225 million in funding to upgrade a Roseville (Placer County) computer chip plant.

The money from the CHIPS and Science Act would contribute to Bosch’s $1.9 billion investment to enable production of silicon carbide power semiconductor chips for electric cars. Up to 700 manufacturing and tech jobs are expected to be created, along with 1,000 temporary construction jobs, according to the U.S. Commerce Department.

Sacramento Business Journal: Bosch lands up to $225 million in CHIPS Act money for Roseville semiconductor plant

[Mark Anderson, 12/13/24]

A German engineering company has an initial agreement for up to $225 million in direct funding from the CHIPS Act toward its $1.9 billion investment in a semiconductor manufacturing plant under construction in Roseville.

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.