CHIPS Act funding signed into law: More action is needed now
By, the American Materials Technology Partnership (AMTP)
Last week, President Biden signed legislation to enact the CHIPS and Science Act, providing billions of dollars in federal incentives for domestic semiconductor manufacturing, a move welcomed as a first step by American Materials Technology Partnership (AMTP) Executive Director Dan Brewer.
“In addition to spurring the domestic manufacturing of critical semiconductor components, we believe Congress must also find additional ways to recognize and support the materials and supply chains necessary for any such expanded manufacturing capacity,” Mr. Brewer said.
Specifically, the new law provides $52.7 billion in emergency supplemental appropriations for the next five years to implement a Commerce Department initiative to develop domestic semiconductor manufacturing capability and to support research and development (R&D) and workforce development programs that were authorized by the FY 2021 National Defense Authorization Act (NDAA).
Of this amount, $39 billion is appropriated to provide financial assistance to build, expand, or modernize domestic manufacturing capabilities, with up to $6 billion of these funds to be used for the cost of direct loans and loan guarantees. An appropriation of $11 billion is provided to support R&D and workforce development programs.
The legislation includes $2 billion for the “Microelectronics Commons,” a national network for onshore, university-based prototyping, lab-to-fab transition of semiconductor technologies and semiconductor workforce training. An additional $500 million is appropriated to coordinate with foreign government partners on international information and communications technology security and semiconductor supply chain activities, and $200 million is provided for the National Science Foundation to promote growth of the semiconductor workforce.
“It is important to note, however, that more needs to be done to ensure our economic and national security, which is increasingly dependent upon such essential microelectronic components,” Mr. Brewer said in a statement released to the media. Additionally, Mr. Brewer cautioned that the federal government also needs to re-examine “the pending expiration of federal tax provisions designed to support science and technology research and development.”
“At a time when our microelectronic supply chains and essential components are at risk, it would be an overall step backward to allow such incentives to lapse,” he said.
Learn more about our partners at the AMTP coalition.