The U.S. Department of Commerce today outlined how it and other government agencies will disburse $50 billion from the CHIPS Act to chipmakers and other semiconductor-related groups. More detailed funding documents are expected by early February.

Around $28 billion, or nearly two-thirds of the total funding, will support Intel, Micron Technology, and other companies that make leading-edge logic and memory chips. Another $10 billion will help fund new manufacturing capacity for mature and current-generation chips, as well as specialty technologies like silicon carbide or carbon nanotube materials. An additional $11 billion is earmarked for the creation of a National Semiconductor Technology Center (NSTC), as well as an advanced chip packaging program and up to three new manufacturing institutes.

The?CHIPS program, under Commerce’s National Institute of Standards and Technology (NIST) and the U.S. Department of Defense, aims to rebuild the U.S. semiconductor ecosystem while creating lucrative jobs domestically and strengthening national security.

“Rebuilding America’s leadership in the semiconductor industry is a down payment on our future as a global leader,” U.S. Commerce secretary Gina Raimondo said in prepared remarks. “CHIPS for America will ensure continued U.S. leadership in the industries that underpin our national security and economic competitiveness.”

Micron, the world’s third-largest memory chip manufacturer, last week laid out plans to build the first memory fab in 20 years in the U.S.

Others in the electronics industry have raised concerns that the CHIPS program will award money to companies that don’t need support while neglecting other segments of the U.S. electronics industry that are critical to the domestic ecosystem and are barely surviving.

COMPETITION WITH CHINA

The Commerce department is wielding a carrot and a stick, administering the CHIPs program while restricting?global exports of advanced chipmaking technology?to Chinese chip designers like Alibaba and Baidu—companies that are potential threats to U.S. leadership. Last month, the DOC’s Bureau of Industry and Security (BIS) established new controls over exports, enlisting support from several countries that the BIS said are essential to U.S. national security.

A tech war between the U.S. and China that started under the administration of former U.S. President Donald Trump shows signs of intensifying under President Joe Biden.

Early this month, the U.S. government announced restrictions on sales of Nvidia GPUs that are expected to slow China’s progress in artificial intelligence, which one analyst says leads the world.

The U.S. is expected to announce further restrictions that would deny CHIPS funding to chipmakers investing in China, as well as foundries like Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung conducting production for Chinese chip designers at the 7-nm node and below, according to sources interviewed by EE Times.

The Commerce department today said the primary goal of the CHIPS program is to regain the technological lead in semiconductor manufacturing, which has ebbed away to Asian companies like TSMC and Samsung.

TSMC and Samsung are starting production of 3-nm chips this year while U.S.-based Intel has yet to launch its first 7-nm chips. Both TSMC and Samsung have announced investments in the U.S. on the expectation of receiving CHIPS funding.

More recently, Intel announced a U.S. investment of up to $100 billion that relies on the incentive program.

The U.S. CHIPS Act also aims to create a stable supply of mature-node chips, boost investment in advanced R&D, and generate tens of thousands of attractive manufacturing jobs.

Companies like carbon nanotube pioneer Nantero hope the CHIPS program will help lead them from a “valley of death” that’s kept them from commercial viability. SkyWater Technology, a U.S. foundry that’s a trusted chip supplier for the Defense department, recently announced plans to build a $1.8 billion chip facility that will count on some of the funding from the CHIPS program.

Money will be available as grants or cooperative agreements, or as subsidized loans or loan guarantees. To support the program, the Commerce department said it is still evaluating newly enacted investment tax credits on capital expenditures in advanced manufacturing facilities.

Strengthening U.S. leadership in R&D will require the collaboration of academia, industry, and allied countries, as well as investment sustained over many years, according to the Commerce department.

The CHIPS program will prioritize projects that meet standards on information security, data tracking and verification, and that collaborate on further development and adoption of such standards.?

The U.S. government pledged that the CHIPS program will help provide more work to people typically excluded from the semiconductor industry, including women, people of color, veterans, and people who live in rural areas.

By: DocMemory
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