CHIPS Incentives Program – Facilities for Semiconductor Materials and Manufacturing Equipment

2023-NIST-CHIPS-SMME-01

NOTICE OF FUNDING OPPORTUNITY (NOFO)
CHIPS Incentives Program – Facilities for Semiconductor Materials and Manufacturing
Equipment
EXECUTIVE SUMMARY
• Federal Agency Name: National Institute of Standards and Technology (NIST), United
States Department of Commerce
• Funding Opportunity Title: CHIPS Incentives Program – Facilities for Semiconductor
Materials and Manufacturing Equipment
• Announcement Type: Initial
• Funding Opportunity Number: 2023-NIST-CHIPS-SMME-01
• Assistance Listing (CFDA Number): 11.037 – CHIPS Incentives Program
• Dates:
For all potential applicants, concept plans will be accepted between December 1,
2023, and February 1, 2024.
o For applications that are invited to advance to the full application phase, the
CHIPS Program Office will communicate full application submission dates to
o applicants individually upon notifying them of their advancement.
The Department of Commerce may amend this NOFO at any time. It may also close the
funding opportunity with at least 60 days’ notice. Changes will be communicated via
https://www.grants.gov and https://www.chips.gov.
• Application Submission Address: https://applications.chips.gov/
Funding Opportunity Description: The CHIPS Incentives Program aims to catalyze long-term
economically sustainable growth in the domestic semiconductor industry in support of U.S.
economic and national security. This is the second Notice of Funding Opportunity under this
program. It seeks applications for projects for the construction, expansion, or modernization of
commercial facilities for semiconductor materials and manufacturing equipment for which the
capital investment falls below $300 million.
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Table of Contents
I. Program Description ........................................................................................................... 3
A. Program Objectives .......................................................................................................... 3
B. Program Summary ............................................................................................................ 4
C. Program Priorities .......................................................................................................... 11
II. Federal Award Information .............................................................................................. 18
A. Funding Instrument ........................................................................................................ 18
B. Funding Availability ...................................................................................................... 19
C. Award Amount ............................................................................................................... 19
D. Period of Performance .................................................................................................... 19
III. Eligibility Information ....................................................................................................... 19
A. Eligible Applicants ......................................................................................................... 19
IV. Application and Submission Information ........................................................................ 20
A. How to Access an Application Package ......................................................................... 20
B. Submission Dates and Times ......................................................................................... 21
C. Confidential Information ................................................................................................ 21
D. False Statements ............................................................................................................. 23
E. Application Requirements .............................................................................................. 23
F. Requirements for Attachments Submitted through the CHIPS Incentives Program
Application Portal ..................................................................................................................... 23
G. Content and Form of Concept Plan ................................................................................ 24
H. Content and Form of Full Application Submission ....................................................... 26
I. Funding Restrictions ...................................................................................................... 37
J. Prohibition on Profit and Fees. ....................................................................................... 37
V. Application Review Information ...................................................................................... 37
A. Concept Plan Evaluation Criteria ................................................................................... 38
B. Selection Factors ............................................................................................................ 38
C. Full Application Evaluation Criteria .............................................................................. 39
D. Review and Selection Process ........................................................................................ 40
E. Responsibility / Qualification Records on SAM.gov ..................................................... 42
F. Additional Information ................................................................................................... 42
VI. Federal Award Administration Information................................................................... 42
A. Federal Awarding Agency Contacts .............................................................................. 43
VII. Appendix ............................................................................................................................. 43
A. Definitions ...................................................................................................................... 43
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FULL ANNOUNCEMENT TEXT
I. Program Description
This Notice of Funding Opportunity (NOFO) seeks applications for the CHIPS Incentives
Program, authorized by Title XCIX—Creating Helpful Incentives to Produce Semiconductors
for America of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal
Year 2021 (Pub. L. 116-283, referred to as the CHIPS Act or Act), as amended by the CHIPS
Act of 2022 (Division A of Pub. L. 117-167). The CHIPS Incentives Program is administered by
the CHIPS Program Office (CPO) within the National Institute of Standards and Technology
(NIST) of the United States Department of Commerce (Department).
This NOFO seeks applications for CHIPS Incentives Awards that will support investments in the
construction, expansion, or modernization of commercial facilities in the United States for
semiconductor materials and semiconductor manufacturing equipment for which the capital
investment falls below $300 million. The application process and requirements detailed below
are designed to be appropriate for smaller projects and accessible to smaller businesses. Awards
made pursuant to this NOFO will be in the form of direct funding (via grants, cooperative
agreements, or other transactions).1
CPO will provide further guidance on the program requirements and procedures in subsequent
publications and through a series of public webinars, information about which will be available
at https://www.chips.gov. Interested parties should routinely check https://www.chips.gov for
updates.
A. Program Objectives
The CHIPS Incentives Program aims to strengthen U.S. economic and national security,
including economic resilience and competitiveness. The CHIPS Act sets forth multiple
dimensions of this overriding objective:
• Strengthening the security and resilience of the semiconductor supply chain, including by
mitigating gaps and vulnerabilities
• Providing a supply of secure semiconductors relevant for national security
• Strengthening the leadership of the United States in semiconductor technology
• Growing the economy of the United States and supporting job creation in the United
States
• Bolstering the semiconductor and skilled technical workforces in the United States
• Promoting the inclusion of economically disadvantaged individuals2 and small businesses
1 Although this NOFO offers only direct funding, applicants will be asked as part of the application package whether
they would be interested in a loan or loan guarantee should such options become available at a later date.
2 See Appendix for the definition of “economically disadvantaged individuals.”
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• Improving the resilience of the semiconductor supply chains of critical manufacturing
industries3
For the CHIPS Incentives Program to be successful on these many dimensions, it must lay the
groundwork for long-term growth and economic sustainability in the domestic semiconductor
industry and promote the secure and resilient supply chains on which the sector relies. The
industry must have a robust and skilled workforce and a diverse base of suppliers for
semiconductor production. It must support research and development (R&D) that will drive
innovation in design, materials, and processes that will accelerate the industries of the future.
And it must support the broader U.S. economy, creating good jobs accessible to all and
supporting and growing local economies and communities.
In addition, for the CHIPS Incentives Program to succeed, the Federal funds must serve as a
catalyst to galvanize private, state, and local investment in the semiconductor industry. That is,
the program funds are a supplement to, not a replacement for, other sources of capital.
The CHIPS Incentives Program seeks to fund applicants that demonstrate a commitment to
investment in the United States for the long term and projects that maximize private sources of
capital. Only private industry can marshal the resources necessary to make the sustaining
investments needed in the decades that follow to maintain a resilient, economically viable, and
growing U.S. semiconductor industry.
B. Program Summary
The CHIPS Incentives Program must fund a variety of projects to achieve its economic and
national security objectives. Projects will vary in technology, scale, cost, location, risk,
workforce needs, and other factors. To fund any project, the Department must determine that the
project is in the economic and national security interests of the United States and satisfies the
CHIPS Act’s eligibility requirements, as well as the amount of funding appropriate for the
project.4
This NOFO describes considerations and procedures the Department will use to make these
determinations. Because this funding opportunity is targeted towards smaller projects, the
Department is operating a streamlined application process designed to facilitate participation for
small and medium-sized businesses. This section summarizes, in a question-and-answer format,
certain eligibility and procedural requirements for applications under this NOFO.
1. What projects are eligible for funding under this NOFO?
This NOFO seeks applications for the construction, expansion, or modernization of commercial
facilities in the United States in the following categories.
3 See 15 U.S.C.§ 4652(d). See Appendix for the definition of “critical manufacturing industries.”
4 See 15 U.S.C. §§ 4652(a)(2)(C)(i)(I)-(II), 4652(a)(3)(A).
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Semiconductor Materials Facilities for the manufacture or production, including growth or
extraction, of materials used to manufacture semiconductors, which are the chemicals, gases, raw
and intermediate materials, and other consumables used in semiconductor manufacturing.
Specific examples include but are not limited to polysilicon; photoresists and ancillaries
(developers, strippers, litho solvents, and anti-reflective and hardmask layers); sputtering targets
(including tantalum, titanium, and aluminum); and materials specifically used in quantum
information systems (such as hafnium and niobium).5 Applications for the construction,
expansion, or modernization of these facilities will be eligible for this NOFO only if the capital
investment, as defined in Section IV.G.3, falls below $300 million.
Semiconductor Manufacturing Equipment Facilities for the physical production of
specialized equipment integral to the manufacturing of semiconductors and subsystems that
enable or are incorporated into the manufacturing equipment. Specific examples of
semiconductor manufacturing equipment include but are not limited to deposition equipment,
including chemical vapor deposition, physical vapor deposition, and atomic layer deposition;
etching equipment (wet etch, dry etch); lithography equipment (steppers, scanners, extreme
ultraviolet); wafer slicing equipment, wafer dicing equipment, and wire bonders; inspection and
measuring equipment, including scanning electron microscopes, atomic force microscopes,
optical inspection systems, and wafer probes; certain metrology and inspection systems; and ion
implantation and diffusion/oxidation furnaces. Applications for the construction, expansion, or
modernization of these facilities will be eligible for this NOFO only if the capital investment, as
defined in Section IV.G.3, falls below $300 million.
Only facilities of the types listed above are eligible for funding under this NOFO. Commercial
fabrication facilities, as well as facilities for semiconductor materials and manufacturing
equipment for which the capital investment equals or exceeds $300 million, may apply for
funding under the NOFO the Department released in February and amended in June.6 CPO
expects to launch an additional funding process for applications related to R&D facilities at a
later date.
Note that the Department will not fund applications that lack sufficient scale to meaningfully
contribute to the objectives outlined in this NOFO. The Department expects that projects with
capital investments below $20 million are unlikely to meet this standard. If a sub-$20 million
project does meet this standard, the Department generally expects other stakeholders—including
chipmakers, larger suppliers, and state and local entities—to make the project viable without
CHIPS funding.
2. What are the eligibility requirements for funding under this NOFO?
The CHIPS Act imposes several eligibility requirements for funding.
5 For the purposes of this NOFO, wafer manufacturing facilities are not considered semiconductor materials
facilities. Wafer manufacturing facilities are eligible to apply for funding under the CHIPS Incentives Program –
Commercial Fabrication Facilities Notice of Funding Opportunity.
6 See CHIPS Incentives Program – Commercial Fabrication Facilities Notice of Funding Opportunity.
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First, funding is available only to “covered entities.”7 This term includes private entities or
consortia of private and public entities with a demonstrated ability to substantially finance,
construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced
packaging, production, or research and development of semiconductors, materials used to
manufacture semiconductors, or semiconductor manufacturing equipment.8 Section III.A
describes this requirement in more detail.
Second, funding is available to covered entities “to incentivize investment in facilities and
equipment in the United States” for the production of materials used to manufacture
semiconductors or semiconductor manufacturing equipment.9 An applicant must demonstrate
how the CHIPS Incentives requested will incentivize the applicant to make investments in
facilities and equipment in the United States that would not occur in the absence of the CHIPS
Incentives.
Third, funding must be for the construction, expansion, or modernization of facilities of the kind
described in Section I.B.1.10 For the purposes of this NOFO, construction means the construction
of a new facility. Expansion or modernization includes, for example, significantly enlarging an
existing facility, increasing the capacity of an existing facility via a material capital investment,
such as by adding a new production line, and upgrading an existing facility, such as converting a
facility from another use. Both expansions and modernizations will be evaluated on the
materiality of the investment relative to existing production. Projects that involve relocating a
material amount of equipment, facilities, or production from one facility in the United States to
another facility, new or expanded, are disfavored. Such projects will be deemed nonresponsive to
this NOFO absent a compelling economic or national security justification.11
Fourth, the CHIPS Act specifies that the covered entity must have a documented interest in
constructing, expanding, or modernizing an eligible facility.12 With respect to such construction,
expansion, or modernization, the CHIPS Act requires that the covered entity shall:
• Have been offered a covered incentive from a state or local jurisdiction (state or local
incentive) where the project is located, for the purposes of attracting the construction,
expansion, or modernization of the facility13
• Make commitments to worker and community investment, including through training and
education benefits paid by the covered entity and programs to expand employment
opportunities for economically disadvantaged individuals14
7 See 15 U.S.C. § 4652(a)(1).
8 See 15 U.S.C. § 4651(2).
9 See 15 U.S.C. § 4652(a)(1).
10 See 15 U.S.C. § 4652(a)(4)(A).
11 15 U.S.C. § 4652(a)(2)(C)(iv).
12 15 U.S.C. § 4652(a)(2)(B)(i).
13 15 U.S.C. § 4652(a)(2)(B)(ii)(I); 15 U.S.C. § 4651(3)(A).
14 15 U.S.C. § 4652(a)(2)(B)(ii)(II)(aa)-(bb).
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• Secure commitments from regional educational and training entities and institutions of
higher education to provide workforce training, including programming for training and
job placement of economically disadvantaged individuals15
• Have an “executable plan,” i.e., a plan reasonably capable of successful implementation,
to sustain the facility without additional funding from the CHIPS Incentives Program16
• Have documented its workforce needs and produced a strategy to meet such workforce
needs as well as the aforementioned commitments to worker and community
investment17
• Have determined the types of semiconductor technology it will produce at the proposed
facility, and the customers, or categories of customers, to whom the items will be sold,18
and
• Have developed an “executable plan” to identify and mitigate relevant semiconductor
supply chain security risks.19
The Department has designed this NOFO, including the application requirements and review
process, to ensure that these statutory requirements will be met for projects receiving CHIPS
Incentives.
3. What constitutes a project for purposes of an application?
For the purposes of an application, a “project” is a set of capital expenditures for the
construction, expansion, or modernization of a single facility. A project also includes any related
workforce development or operating expense costs for the facility that the applicant proposes to
cover with CHIPS Incentives funds. Applicants may only include one project per application.
4. May applicants apply for funding under this NOFO as part of a consortium,
and if so, how?
Yes, applicants may apply for funding under this NOFO as part of a consortium. For projects that
claim to support vibrant U.S. clusters20, in particular—see discussion of the Department’s
economic security objectives in Section I.C.1—the Department strongly encourages applicants to
15 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
16 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
17 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).
18 15 U.S.C. § 4652(a)(2)(B)(ii)(V).
19 15 U.S.C. § 4652(a)(2)(B)(iii).
20 The Department has defined a cluster for these purposes as “a geographically compact area with multiple
commercial-scale fabs owned and operated by one or more companies; a large, diverse, and skilled workforce;
nearby suppliers to the semiconductor industry; R&D facilities; utilities; and specialized infrastructure, such as
chemical processing and water treatment facilities.” Department of Commerce, “Vision for Success: Commercial
Fabrication Facilities,” February 28, 2023. The proximity and density of firms within a specific geography, and their
linked industries, generate incentives for knowledge sharing, development of best practices, innovation, investment,
and workforce development. They are often supported by government and other institutions including universities,
standards-setting bodies, and vocational training institutions. The development of self-sustaining clusters is critical
to developing the U.S. chips innovation ecosystem and can be furthered in various ways, including but not limited to
the co-location of firms, the production of inputs within a supply chain, the upskilling of local workforces, and the
establishment of collaborations between public and private institutions that facilitate tech commercialization.
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consider applying as part of a consortium to leverage connections with other entities seeking to
build and sustain regional semiconductor clusters. The Department will award funding on a per-
project basis to consortium members proposing to construct, expand, or modernize a facility
eligible under this NOFO.
Since applicants may include only one project per application, a consortium seeking funding for
multiple projects must submit a separate application for each project. The Department expects
the entity submitting the application to be the for-profit entity within the consortium that will
own and/or operate the project facility. These applicants must also submit a consortium narrative
detailing the other members of the consortium and the overall strategic vision of the consortium,
among other relevant information.
The Department expects that strong consortia will include at least two suppliers, a state or local
government entity (which may include quasi-governmental entities), and an anchor institution
such as a semiconductor fab.21 Other members may include workforce training providers, labor
unions, economic development corporations, institutions of higher education, philanthropic
foundations, industry organizations, Tech Hubs,22 or other relevant entities.23
State or local government entities that join consortia are strongly encouraged to take steps to
build and support vibrant semiconductor clusters. Such steps might include investments in
workforce, education, site preparation, research and development, or infrastructure (including
transportation, housing, water, or energy) designed to benefit both the consortia members and the
broader community. State and local government entities in consortia are also strongly
encouraged to help streamline access to resources critical to cluster growth, such as permitting
and expansion services, and coordination with relevant regulatory authorities.
Under this NOFO, consortia do not need to have an umbrella organization or other formal legal
structure. Consortium members must, however, actively collaborate and align on the content of
each application submitted as part of the consortium. In evaluating projects submitted as part of a
consortium, the Department will consider the extent to which the consortium’s strategic vision
advances economic and national security, and the extent to which a given project is necessary for
achieving that vision. Thus, the Department strongly encourages consortia to be selective in
choosing projects.
21 Semiconductor fabs will not receive funding under this NOFO for the construction, expansion, or modernization
of the fab. Those semiconductor fabs that wish to apply for a CHIPS Incentive Award for such activities may do so
under the CHIPS Incentives Program – Commercial Fabrication Facilities Notice of Funding Opportunity.
22 The Economic Development Agency (EDA) defines a Tech Hub’s geography as an area with a concentration of
assets, capital, R&D, labor market, and infrastructure strongly relevant to the Hub’s selected core technology area,
the Hub’s identified market opportunity, and its potential to become globally competitive in that area within a
decade. See Tech Hubs Notice of Funding Opportunity.
23 Organizations that do not qualify as covered entities may participate in consortia and receive funding as
subrecipients or contractors to an eligible covered entity.
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5. Are there any benefits to applying as part of a consortium?
Whether a project meaningfully contributes to the development or sustainability of a cluster is a
factor the Department may use to advance concept plans to the full application phase or to select
a full application to receive an award. We generally expect applicants applying as part of
consortia to be better positioned to make this showing.
In addition, applicants applying as part of a consortium may work together to satisfy various
statutory eligibility and other requirements
Covered incentive: The CHIPS Act requires that a covered entity shall have been offered a
covered incentive from a state or local jurisdiction (state or local incentive) where the project is
located, for the purposes of attracting the construction, expansion, or modernization of the
facility.24 For consortium members, this requirement may be satisfied by one letter that offers an
incentive to all eligible facilities in the consortium being proposed for construction, expansion,
or modernization. Note, however, that the Department will also accept multiple letters.
Worker and community investment: The CHIPS Act requires that a covered entity shall make
commitments to worker and community investment, including through training and education
benefits paid by the covered entity and programs to expand employment opportunities for
economically disadvantaged individuals.25
• Commitments to worker investment: In general, consortium members may collaborate on
their workforce investments to achieve economies of scale. Consortium members may
also decide among themselves how much funding and/or other resources each
contributes to the consortium’s overall commitments. However, within a consortium,
each individual applicant must: (1) specify their financial contribution to training and
education benefits and (2) list their specific contributions (funding and/or other
resources) to programs to expand employment opportunities for economically
disadvantaged individuals.
• Commitments to community investment: Consortium members may collaborate on
community investments, with consortium members deciding among themselves how much
funding and/or other resources each contributes to the consortium’s overall
commitments. Individual consortium members applying for funding for eligible facilities
must list their specific contribution in their application package.
Commitments to provide workforce training: The CHIPS Act requires that a covered entity shall
secure commitments from regional educational and training entities and institutions of higher
education to provide workforce training, including programming for training and job placement
of economically disadvantaged individuals.26 Consortium members may work together to secure
24 15 U.S.C. § 4652(a)(2)(B)(ii)(I); 15 U.S.C. § 4651(3)(A).
25 15 U.S.C. § 4652(a)(2)(B)(ii)(II)(aa)-(bb).
26 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
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these required commitments. The evidence of the commitments should confirm that any
individual consortium member applying for funding has secured the commitment.
Workforce strategy: The CHIPS Act requires that a covered entity shall have documented its
workforce needs and produced a strategy to meet such workforce needs as well as the
commitments to worker and community investment above.27 Consortia applicants may develop
one workforce strategy at the consortium level that covers the strategy for each consortium
member seeking CHIPS funding for a project to construct, expand, or modernize a facility
eligible under this NOFO.
6. How can CHIPS Incentives funds be used?
Funds made available under the CHIPS Incentives Program may be spent only on eligible uses,
which include the costs to:
• finance the construction, expansion, or modernization of a facility, or equipment for that
facility
• support site development and modernization for a facility
• support workforce development for a facility
• pay reasonable operating expenses for a facility, as determined by the Department.28
Not all of the applicant’s activities within a project may be eligible to receive program funds.
However, as described in Sections IV.G.3 and IV.H.4, the applicant must clearly describe any
activities within its proposed project that may be eligible uses for CHIPS Incentives.
Certain purposes are ineligible uses for CHIPS Incentives. See Section IV.I for more details.
7. How much support can a project receive in CHIPS Direct Funding?
It is generally expected that most CHIPS Direct Funding awards will equal 10 percent of project
capital expenditures.29 In rare cases, applicants may receive an award of either 20 percent or 30
percent of project capital expenditures if they have (a) made a particularly compelling case that
their project advances the Department’s economic and national security objectives, and (b)
demonstrated that the additional funding is necessary to make the project commercially viable.
Projects eligible for the Advanced Manufacturing Investment Credit30 (Investment Tax Credit)
will not receive an award of more than 20 percent of project capital expenditures.
27 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).
28 See 15 U.S.C. § 4652(a)(4).
29 Project capital expenditures refers to expenses incurred in the construction or improvement of physical assets,
such as the costs of land, building and construction, equipment and installation, physical improvements, and
working capital during the construction phase.
30 See 26 U.S.C. § 48D. This separate incentive is administered by the Internal Revenue Service and provides a tax
credit for qualifying capital investments in a manufacturing facility for which the primary purpose is the
manufacture of semiconductors or semiconductor manufacturing equipment, subject to certain credit recapture rules.
The Department expects applicants to take advantage of the Investment Tax Credit, if eligible, to the fullest extent
possible.
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If an applicant requests more than 10 percent in CHIPS Direct Funding, the Department expects
that it may take substantially longer to evaluate the full application and prepare an award.
In addition, if an applicant requests an award of more than 10 percent of project capital
expenditures, the Department may offer an award for 10 percent of project capital expenditures
contingent on the applicant demonstrating that the project will be able to close the funding gap
and be commercially viable at that award amount.
8. How does the application process work?
The application process includes two primary phases. In the first phase, applicants will be asked
to submit a concept plan describing how their proposed project addresses core program priorities.
The Department will then invite the most promising applicants to the second phase, where they
will have the opportunity to submit a full application. The Department will communicate full
application submission dates to those applicants selected to advance, and may work with
applicants selected to advance as they shape their concept paper into a full application.
Applicants that advance in the process will be subject to due diligence prior to award. For more
information on the application process, see Section V.D.
If an applicant is applying as part of a consortium: Each member of a consortium that seeks
CHIPS Incentives for a project to construct, expand, or modernize a facility eligible for funding
under this NOFO must submit a separate concept plan and, if invited to the second phase, a
separate full application. Each project will be evaluated on its own merits. Consortium applicants
will be required to provide details about their consortium in a separate consortium narrative. In
evaluating an individual project proposed as part of a consortium, the Department will consider
the strength of the consortium’s overall strategic vision and the extent to which an individual
project is necessary to advance that vision. For more information, see Sections V.C. and V.D.
C. Program Priorities
The CHIPS Incentives Program seeks to further priorities relating to economic and national
security, workforce, and other matters. This section provides information about the program’s
priorities. Applicants should develop their applications with these priorities in mind, as they
relate to various requirements and evaluative criteria that will form the basis for the
Department’s application review process. Applications that do not meet program priorities will
not receive funding. The Department will not fund applications that lack sufficient scale to
meaningfully contribute to the objectives outlined in this NOFO. The Department expects
projects with capital investments below $20 million are unlikely to meet this standard. If a sub-
$20 million project does meet this standard, the Department generally expects other
stakeholders—including chipmakers, larger suppliers, and state and local entities— make the
project viable without CHIPS funding.
1. Economic and National Security Objectives
Advancing U.S. economic and national security is the principal objective of the CHIPS
Incentives Program. With respect to economic security, this NOFO contains a particular focus on
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incentivizing the development of vibrant, sustainable semiconductor clusters. These clusters are
critical to creating a robust semiconductor ecosystem in the United States.
In addition, the Department seeks to invest in operationally secure projects employing
appropriate cybersecurity practices, as well as implementing plans to promote supply chain
security and risk management. Projects must be protected from internal and external risks
ranging from insider threats to disaster recovery and ensure their supply chain is resilient to
disruption. Moreover, projects should generally be capable of continued operations for a period
of time without access to non-U.S. facilities and personnel.
a. Economic Security Objectives
The Department has laid out three objectives for its investments in semiconductor materials and
manufacturing equipment facilities: (1) strengthening supply chain resilience, (2) advancing U.S.
technology leadership in semiconductor materials and manufacturing equipment, and (3)
supporting vibrant U.S. fab clusters. For more detailed information, see “Vision for Success:
Semiconductor Materials and Manufacturing Equipment Facilities.”
Through this NOFO, the Department is particularly focused on the third goal: supporting vibrant
U.S. fab clusters. The Department seeks applications for semiconductor material and equipment
facilities that advance clusters by closing critical gaps in the U.S. supplier landscape, for
example by reducing the burdens associated with transporting critical supply chain inputs.
Applicants claiming to benefit U.S. clusters are strongly encouraged to apply as part of a
consortium and to work closely with state and local entities and other stakeholders. Applicants
claiming to support one of the other two objectives are also welcome to apply as part of a
consortium.
With respect to strengthening supply chain resilience, the Department seeks projects that address
chokepoint risks flowing from geographic concentration and reduce the risks of production
disruptions due to chronic shortages of critical supply chain inputs.
With respect to advancing U.S. technology leadership, the Department seeks projects that
advance U.S. technology leadership by reinforcing existing supply chain strengths and/or
developing new and innovative capabilities in the United States. The Department encourages
major U.S. semiconductor manufacturing equipment and materials suppliers to increase their
footprints in the United States, and aims to attract non-U.S. suppliers of the world’s most
advanced semiconductor manufacturing equipment, materials, and subsystems to establish large-
scale footprints in the United States.
Ultimately, the Department recognizes that all three objectives are self-reinforcing: supporting
vibrant U.S. fab clusters, for example, can generate efficiencies and innovation that end up
strengthening supply chain resilience and/or technology leadership. The Department welcomes
projects that support one or more of these objectives. If a project does not support a cluster, the
application must make a compelling case for advancing one of the Department’s other two
objectives to receive funding.
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Regardless of which objective(s) a project advances, the Department seeks applicants that are
committed to strengthening the United States’ robust innovation ecosystem for research and
development, including by investing in domestic R&D facilities and participating in R&D
initiatives established by the CHIPS Act. CHIPS Act R&D initiatives include the National
Semiconductor Technology Center (NSTC), which will conduct research and prototyping of
advanced semiconductor technology, and the National Advanced Packaging Manufacturing
Program (NAPMP), which will strengthen semiconductor advanced test, assembly, and
packaging capability in the domestic ecosystem; Manufacturing USA institute(s) focused on
advanced manufacturing areas; and the CHIPS Metrology program, focused on advancing
measurement methods to enhance semiconductor manufacturing. Robust industry participation in
CHIPS R&D programs will be essential for their success.
Strong applications will include commitments to participate in the NSTC and, if applicable,
engage, support, and collaborate with NAPMP-funded projects in an appropriate manner. The
Department expects that the substance of applicant commitments to R&D will vary but may
include: (1) rotating project technical staff to the NSTC, or training NSTC and NAPMP-funded
facility technical staff through exchanges, (2) providing access to existing R&D facilities to
NSTC research programs, or (3) providing the NSTC or other CHIPS R&D-funded programs
with donations of or access to equipment and/or design tools. Commitments to R&D may also
include participation in the Department of Defense Microelectronics Commons.
b. National Security Objectives
As foundational components to U.S. defense and critical infrastructure systems, semiconductors
are vital to U.S. national security. The government organizations and contractors that fulfill
national security missions require stable, long-term onshore access to semiconductors, which in
turn requires a robust, secure domestic semiconductor supply chain. As relevant, CPO
encourages applicants to identify the national security programs and platforms the project
supports, any customers in the defense industrial base, and any government points-of-contact
who can validate that the project will advance national security.
The Department also acknowledges that the risk of malicious disruptions to semiconductors and
their supply chains has risen in concert with increased chip complexity, process separation, and
outsourcing.31 The evolving threat landscape, coupled with today’s digitized world, provides a
large attack surface for adversaries to steal, compromise, alter, or destroy sensitive information
that is critical to economic and national security.32 The Department seeks applicants that have
made themselves resilient to these attacks, such as by establishing a strategy to protect
intellectual property and by assuring the security of their product quality and supply chain to
prevent tampering, counterfeiting, and other security issues.The Department will also evaluate
projects based on their ability to mitigate additional operational and cybersecurity risks,
31 See The White House, Building Resilient Supply Chains, Revitalizing American Manufacturing, and Fostering
Broad-Based Growth (2021).
32 See Department of Commerce and Department of Homeland Security, Assessment of the Critical Supply Chains
Supporting the U.S. Information and Communications Technology Industry (2022).
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including those posed byinsider threats, external influence from foreign entities of concern,
dependence on foreign-owned or sourced inputs or equipment, and espionage.
Supply chain security is critical to ensure safe and continued production of semiconductors. The
Department seeks projects with demonstrated resilience measures through the protection of
physical infrastructure and the supplier ecosystem, and risk management strategies—such as
regular supply chain mapping—to avoid supply chain exploitation or the theft of intellectual
property.
The Department will also consider the national security risks of the location of any upstream or
downstream steps in the semiconductor material or equipment manufacturing process.
2. Commercial Viability
Long-term commercial viability is an essential component of any successful application.
Commercially viable projects will be grounded on a sound business case providing reliable cash
flows that are sufficient to maintain continuity of operations and continued investment in the
facility.
Each applicant must describe the type of semiconductor material or equipment the proposed
project will produce, where in the semiconductor manufacturing process the technology is used,
and key semiconductor- and non-semiconductor-related end markets.33 A strong application will
present a sophisticated understanding, backed by evidence, of the demand for a project’s output
and other sources of existing and potential future supply. Each applicant must also identify the
customers, or categories of customers, for a project’s output, and strong applications will include
evidence of offtake commitments or other evidence of specific customer demand.34 The
Department encourages proposals that attract more private capital and induce larger-scale,
private domestic investments. The Department also encourages purchase commitments and
collaborations across the supply chain to clarify future demand, improve transparency and trust,
and mitigate the risk of future supply chain shortages or oversupply.
3. Financial Strength
The CHIPS Incentives Program does not provide enough funding on its own to create the
capacity needed to meet the program’s economic and national security objectives. Applicants
should structure the finances of their project in a way that maximizes private-sector contributions
and minimizes the need for government incentives. The Department may decline to award
CHIPS Incentives if the applicant has not demonstrated sufficient efforts to maximize the use of
private-sector funds. The Department will evaluate the degree to which the applicant, through its
funding request, leverages private investment, incentives provided by state and local
governments, and the Investment Tax Credit (to the extent applicable) to increase scale and
33 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(aa).
34 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(bb).
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lower the need for CHIPS Incentives. The Department will also ask applicants to submit a
financial model, which will inform a comprehensive assessment of a project’s finances.
4. Project Technical Feasibility and Readiness
Timely construction and effective operation of facilities is crucial to the overall success of the
CHIPS Incentives Program. Project technical feasibility includes the ability of the applicant to
construct, equip, and operate the proposed project. To demonstrate technical feasibility,
applicants will be asked to provide a construction plan, including a construction schedule and a
list of key partners, contractors, and suppliers.
Activities funded under this NOFO will be subject to various Federal, state, and local
environmental and permitting requirements. The Department intends to prioritize applications
that demonstrate a clear path to meeting these requirements in a timely manner. This path could
include reducing or mitigating potential environmental impacts (including impacts on
communities with environmental justice concerns), enhancing community engagement,
identifying steps to reduce costs and barriers to construction, using existing infrastructure or
making mitigation commitments, and securing agreements or support from state and local
permitting authorities to ensure projects stay on schedule.
The applicant should identify the necessary environmental compliance and permitting steps for
the proposed project, and, as relevant, for each individual activity within each individual project.
Applicants are strongly encouraged to design their projects to minimize the potential for adverse
impacts on the environment and the local community (including communities with
environmental justice concerns), including by taking steps to prevent pollution and by relying as
much as possible on clean energy to operate their projects. Applicants are also encouraged to
describe the design features, construction methods, and operation strategies they will employ to
increase resilience from weather- and climate-related risks and the metrics and processes the
applicant will use to measure and track any climate and environmental responsibility goals and
commitments.
5. Workforce and Community Investment
The CHIPS Act requires applicants to make commitments to worker and community
investment.35 Each applicant will therefore be asked in their full application to submit a
“workforce and community investment” plan that sets forth (1) their strategy for investing in
their construction and facility workforces, and (2) their strategy for community investment. As
detailed in Section I.B.5 above, consortium members may collaborate on various parts of the
plan.
35 See 15 U.S.C. § 4652(a)(2)(B)(ii)(II).
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a. Workforce Development36
A strong, long-term workforce strategy is critical to achieving the economic and national security
goals of the CHIPS Act. Each applicant will therefore lay out their strategy to recruit, train, hire,
retain, and upskill a diverse workforce in good jobs at their facility. The Good Jobs Principles37
published by the Departments of Commerce and Labor outline the elements of a good job,
including recruitment and hiring practices, pay and benefits, job security and working conditions,
worker empowerment, skills and career advancement, and organizational culture. All applicants
must comply with all applicable Federal labor and employment laws, including but not limited to
Title VII of the Civil Rights Act of 1964, the Fair Labor Standards Act, the Occupational Safety
and Health Act, and the National Labor Relations Act, which protects employees’ right to
bargain collectively and engage in concerted activities for the purpose of workers’ mutual aid or
protection.
To be eligible for CHIPS funding, applicants must secure “commitments from regional
educational and training entities and institutions of higher education to provide workforce
training, including programming for training and job placement of economically disadvantaged
individuals.”38 Applicants are strongly encouraged to work with such partners to articulate their
approach to meeting their facility and construction workforce needs through training and
recruitment of American workers, as well as to consider applying as part of a consortium that
includes such partners. For both their facility and construction workforce, applicants must
provide a workforce needs assessment; outline evidence-informed strategies for recruitment,
training, and retention; and describe their approach to ensuring job quality.
Recruiting, training, and retaining a diverse and skilled set of workers will necessitate building
new pipelines for workers, including specific efforts to attract economically disadvantaged
individuals39 and thereby promote diversity, equity, inclusion, and accessibility. For both their
facility and construction workforces, applicants must therefore document how they will expand
access for economically disadvantaged individuals, including how their recruitment, training,
and retention strategies will be tailored to address the needs of these workers.
The Department strongly encourages applicants to leverage evidence-informed recruitment,
training, and retention strategies to increase the participation of economically disadvantaged
individuals. For example, although applicants are not required to provide a plan for access to
child care for facility and construction workers because awards of CHIPS Direct Funding under
this NOFO will not exceed the $150 million threshold established in the first NOFO, applicants
are encouraged to consider providing those workers with access to child care. For more details
on programs and practices to attract and retain economically disadvantaged individuals—
36 For additional resources on the information presented here, applicants are encouraged to consult the appendix of
the CHIPS Program Office, Workforce Development Planning Guide.
37 See U.S. Department of Commerce and U.S. Department of Labor, Good Jobs Principles (2022).
38 See 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
39 See 15 U.S.C. § 4652(a)(2)(B)(ii); Definition of “economically disadvantaged individuals” in the Appendix.
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including Registered Apprenticeships and wraparound services—applicants are encouraged to
consult the CHIPS Program Office Workforce Development Guide.40
An effective workforce strategy for both facility and construction workers will be informed by,
and demonstrate support and commitments from, a diverse set of community and public-sector
entities. Engaging with educational institutions at all levels will be key to training the next
generation of workers, including commitments to work with K-12 institutions, develop and
strengthen career and technical education, and work with programs at existing construction
training centers. Strong applications will reflect a comprehensive approach to building inclusive
workforce pipelines through participating in sectoral partnerships,41 especially with
semiconductor fabrication facilities or other supply chain companies in their cluster. Sectoral
partnerships can play an integral role in the development and implementation of high-quality,
equitable workforce development strategies.
Applicants are likewise strongly encouraged to engage with a broad array of strategic partners,
including but not limited to labor unions; workforce development organizations; state and local
workforce boards; educational institutions, including Minority-Serving Institutions;
semiconductor fabrication companies; and other relevant entities. Applicants should describe
their engagements with strategic partners as part of their applications, and the strongest
applicants will, wherever possible, engage with a wide array of strategic partners to leverage the
broadest view of potential workforce solutions. The Department encourages applicants applying
as part of consortia to include such partners in their consortium and to leverage those
relationships in putting together a comprehensive workforce strategy.
The Department strongly encourages the use of project labor agreements in connection with
construction projects.42 Applicants that commit to using best-practice project labor agreements
will generally be likely to produce a construction workforce strategy that meets the criteria in
this NOFO. Applicants that do not commit to using project labor agreements will need to
demonstrate that they intend to take other measures to ensure workforce continuity and reduce
the risk of project delays. The Department also encourages applicants to take steps to increase
the representation of women and other economically disadvantaged individuals in their
construction workforce and to ensure that applicants and their contractors and subcontractors
adhere to high safety and job quality standards.
All laborers and mechanics employed by contractors or subcontractors on a construction project
that receives financial assistance under the CHIPS Incentives Program shall be paid wages at
rates not less than those prevailing on similar construction in the locality as determined by the
40 See CHIPS Program Office Workforce Development Guide, Sections 3.4.1, 3.4.2.
41A sectoral partnership is a systems-level approach to equitable workforce development that aligns employer
demand for a skilled workforce with available workers by bringing together a range of key partners to train and
place workers into high-quality jobs. In sectoral partnerships, multiple employers support shared resources and are
supported by a backbone coordinating organization.
42 For information on project labor agreements, see Department of Labor, Project Labor Agreement Resource Guide.
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Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, commonly
referred to as the “Davis-Bacon Act.”
b. Community Investment
The Department aims to ensure that its investments build strong, diverse communities that
participate in the prosperity of the semiconductor industry, growing the economy and supporting
job creation in the United States.43
Because communities are best positioned to understand their own needs, the Department expects
applicants to work closely with stakeholders in local communities to develop a set of investments
that is responsive to local needs. Such investments could include but are not limited to financial
support for a research institute or investments in local schools or colleges with a focus on
pathways to career technical opportunities. Strong applications will reflect collaboration with
relevant stakeholders to ensure that community investments address barriers to economic
participation and inclusive growth. Similarly, applicants may seek to align their community
investments with ongoing state and local economic development programs—such as regional or
cluster-based growth efforts, philanthropic efforts, or other federal programs—to amplify their
impact.
Creating Inclusive Opportunities for Businesses. In addition, to ensure that the CHIPS Incentives
Program generates benefits for a broad range of stakeholders and communities, applicants are
strongly encouraged to describe any proactive steps they will take to ensure that small, minority-
owned, veteran-owned, and women-owned businesses are included in the overall project.44 Such
steps could include, for example, placing such businesses on solicitation lists and working with
supplier diversity organizations to grow a pool of diverse suppliers. For more suggested steps to
create inclusive opportunities for businesses, see the CHIPS for America Creating Inclusive
Opportunities for Businesses Guide.45
II. Federal Award Information
A. Funding Instrument
CHIPS Incentives will be provided through this NOFO, as appropriate, through grants,
cooperative agreements, and other transaction agreements.
The final composition and structure of any financial assistance awards made under this program
will be determined during the review and selection process.
43 See 15 U.S.C. § 4652(d)(4).
44 See 15 U.S.C. § 4652(d)(6); CHIPS Act of 2022, Pub. L. 117-167, § 104(c)(3).
45 CHIPS for America, “Creating Inclusive Opportunities for Businesses Guide” (Aug. 21, 2023).
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B. Funding Availability
The Department has reserved up to $500 million for CHIPS Direct Funding under this NOFO.
The actual amounts awarded under this NOFO will depend on program priorities and the quality
of applications received.
C. Award Amount
The total amount of a CHIPS Direct Funding award will vary by project. As noted in Section
I.B.7, the Department generally expects most direct funding awards will equal 10 percent of
project capital expenditures, though in rare cases applicants may receive either 20 percent or 30
percent of project capital expenditures. Direct funding awards will not exceed 30 percent of
project capital expenditures.
D. Period of Performance
The specific period of performance will vary depend on the size and complexity of the project
and the specific activities funded and will be negotiated with the applicant and reflected in the
award documents. The conclusion of an award’s period of performance does not signify the end
of a recipient’s obligations related to a CHIPS Incentives Award.
III. Eligibility Information
A. Eligible Applicants
1. Covered Entity Requirement
An applicant must be a “covered entity” to receive CHIPS Incentives. For purposes of this
NOFO, a “covered entity” means a nonprofit entity; a private-sector entity; a consortium of
private-sector entities; or a consortium of nonprofit, public, and private-sector entities with a
demonstrated ability to substantially finance, construct, expand, or modernize a facility relating
to the fabrication, assembly, testing, advanced packaging, production, or research and
development of semiconductors, materials used to manufacture semiconductors or
semiconductor manufacturing equipment.46
With respect to consortium applications, the Department will award funds on a per-project basis
to each private-sector, domestic legal entity responsible for constructing, expanding, or
modernizing a facility eligible for CHIPS funding under this NOFO.47 A recipient will assume
46 See 15 U.S.C. § 4651(2). Note that projects for semiconductor fabrication and research and development are
outside the scope of this NOFO.
47 Multiple recipients or a nondomestic recipient may be permitted, at the sole discretion of the Department, in
exceptional cases, such as in cases of applications involving more than one member of an affiliated group, i.e. a
corporate parent and one or more of its subsidiaries. Such exceptions will only be granted if consistent with
applicable law and where providing for multiple recipients would further program or project objectives and would
not undermine the ability of the Department to evaluate an application and monitor and enforce compliance with the
terms of any resulting CHIPS Incentives Award. Multiple recipients will not be permitted where the recipients are
not part of the same affiliated group. After the submission of a concept plan, a submitter may seek guidance on
whether a multiple recipient or nondomestic recipient option may be available for its potential application.
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legal and financial responsibility for the CHIPS Incentives received, including any funds
provided to subrecipients and contractors.
The Department may require that the parent or affiliated entities of the recipient provide
commitments or guarantees for the benefit of the Federal government or to advance program
priorities.
2. Foreign Entities of Concern and Foreign Capital
Foreign entities of concern48 are not eligible to receive CHIPS Incentives.49 In addition, the
Department will review applications for involvement of foreign entities of concern and will not
approve any applications where a foreign entity of concern—through control,50 access to
information, or other mechanisms—poses an undue risk to a project or U.S. national security
interests. Applicants are required to provide information via the SF-328 form at the time of full
application to enable an initial assessment of these issues. Additional information, beyond the
scope of the SF-328 form, may be required in due diligence, to further identify and, if necessary,
mitigate potential risks to national security.
CHIPS Incentives Awards will also involve requirements to enable identification and mitigation
of national security risks posed by involvement of foreign entities of concern that may arise after
an application is approved.
3. Cost Sharing or Matching
Cost sharing or matching funds, as governed by 2 CFR § 200.306, are not legally required for
this NOFO. However, as noted above, Direct Funding amounts will generally be 10% of project
capital expenditures, and in no event greater than 30% of project capital expenditures. Each
applicant must be able to demonstrate that they have sufficient resources available to complete
the proposed project, when combined with the requested CHIPS Incentives.
IV. Application and Submission Information
A. How to Access an Application Package
Application forms and instructions are available on the CHIPS Incentives Program application
portal. FAQs, guides and templates are available at https://www.chips.gov.
48 See Final Rule, Department of Commerce, “Preventing the Improper Use of CHIPS Act Funding,” 15 C.F.R. Part
231 (Sept. 25, 2023).
49 15 U.S.C. § 4657.
50 The term “control” for this purpose is defined as any direct or indirect investment in a corporate entity that
provides the investor with the means to influence important matters affecting the project. The term “means to
influence important matters” includes membership or observer rights on, or the right to nominate an individual to a
position on, the board of directors or equivalent governing body of the corporate entity; any involvement, other than
through voting of shares, in substantive decision-making by the corporate entity; and consultation rights with respect
to technology licensing to third parties.
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B. Submission Dates and Times
For all potential applicants, concept plans will be accepted between December 1, 2023, and
February 1, 2024.
For applications that are invited to advance to the full application phase, the CHIPS Program
Office will communicate full application submission dates to applicants individually upon
notifying them of their advancement.
The Department may amend this NOFO at any time. It may also close the funding opportunity
with at least 60 days’ notice. Changes will be communicated via https://www.grants.gov and
https://www.chips.gov.
C. Confidential Information
CPO recognizes the importance of protecting confidential business information from public
disclosure. CPO and the Department will follow applicable laws, including, for example, the
CHIPS Act, the Trade Secrets Act, and the Freedom of Information Act (FOIA), to protect such
information.
1. Statutes Applicable to Confidential Business Information
Subject to certain exceptions, Section 4652 of the CHIPS Act provides that “any information
derived from records or necessary information disclosed by a covered entity to the Secretary
under this section” is exempt from disclosure under FOIA and “shall not be made public.”51
All Federal employees are also bound by the Trade Secrets Act, which makes Federal employees
criminally liable for the unauthorized disclosure of “information [that] concerns or relates to the
trade secrets, processes, operations, style of work, or apparatus, or to the identity, confidential
statistical data, amount or source of any income, profits, losses, or expenditures of any person,
firm, partnership, corporation, or association.” 52 Violations of the Trade Secrets Act may result
in the loss of employment, fines, or imprisonment.
Finally, FOIA requires Federal agencies, including CPO and the Department, to disclose agency
records requested by a member of the public, including information received from outside
parties, unless FOIA specifically exempts the information from disclosure. Information that
“shall not be made public” under Section 4652 of the CHIPS Act “shall be exempt from
disclosure under section 552(b)(3) of title 5,”53 making it exempt from disclosure under FOIA.54
In addition, FOIA exempts from disclosure information submitted by an applicant that
51 15 U.S.C. § 4652(a)(6)(G)(i). The exceptions are for information 1) relevant to any administrative or judicial
action or proceeding, 2) that a covered entity has consented to be disclosed to third parties, or 3) necessary to fulfill
the congressional notification requirement specified under Section 4652(a)(6)(H). “Covered entity” is defined at 15
U.S.C. § 4651(2). The Department interprets “information disclosed by a covered entity to the Secretary under this
section” to include information disclosed by a covered entity as part of the application process under this NOFO.
52 18 U.S.C. § 1905.
53 15 U.S.C. § 4652(a)(6)(G)(i).
54 See 5 U.S.C. § 552(b)(3).
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constitutes trade secrets or is privileged or confidential commercial or financial information.55
The Department will apply these exemptions, in accordance with the law and the Department’s
FOIA regulations,56 to FOIA requests.
2. Instructions for Marking Confidential Business Information
To assist the Department in protecting trade secrets or privileged or confidential commercial or
financial information, applicants should follow these guidelines in submitting information via a
concept plan or full application.
First, the following legend should appear on the first page of any document containing trade
secrets or privileged or confidential commercial or financial information:
This document contains trade secrets or commercial or financial information that is
privileged or confidential and is exempt from public disclosure. Such information shall
be used or disclosed only in accordance with the CHIPS Incentives Program NOFO or as
otherwise authorized or required by law. The information subject to these restrictions is
contained on all pages of the document except for pages [insert page number or other
identification of pages that contain no restricted information.]
(End of Legend)
Second, the following legend should appear on each page of the document that contains
information the applicant seeks to designate as trade secrets or privileged or confidential
commercial or financial information:
Use or disclosure of information contained on this sheet is subject to the restriction on the
title page of this document.
(End of Legend)
The use of any other legend may constitute grounds for removing the application from further
consideration without assuming any liability for inadvertent disclosure. Each applicant must also
use good faith when designating information as trade secrets or commercial or financial
information that is privileged or confidential.
3. Use of Information
Any person or entity submitting information under this NOFO acknowledges and understands
that information and data contained in or submitted in connection with statements of interest57,
concept plans, full applications, or due diligence under this NOFO (together, “applicant
information and data”) may be accessed and used by Federal employees and their contractors for
55 5 U.S.C. § 552(b)(4).
56 See 15 C.F.R. Part 4.
57 Applicants that have not already submitted a statement of interest to the Department are not required to do so
before submitting a concept plan under this NOFO, but may still do so if desired.
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the purposes of this NOFO and carrying out the government’s responsibilities in connection with
the CHIPS Incentives Program, or as otherwise required by law. By submitting applicant
information and data, the applicant, potential applicant, or an entity submitting a concept plan
consents to the disclosure of such applicant information and data to consultants and contractors
for these purposes, consistent with Federal law.
The Department may publish information concerning the award of incentives at stages through
the review, selection, and award process. The Department may inform and, to the extent required
by law, seek consent from applicants of any such disclosures. In addition, as will be set forth in
the terms and conditions of a CHIPS Incentives Award, successful applicants will be expected to
support program and project reviews, audits, and program evaluation activities, including by
submitting required financial and performance information and data in an accurate and timely
manner, making available documents and other records related to the award project upon request,
and by cooperating with Department and external program evaluators, including, for non-
program evaluation activities, the Office of the Inspector General. Certain post-award progress
reporting may also be made public.
The Department may also publish aggregated information from statements of interest, concept
plans, and applications.
D. False Statements
It is a crime to knowingly make false statements to a Federal agency. Misrepresentation of
material facts may be the basis for denial of an application. Penalties upon conviction may
include fine and imprisonment. For details, please refer to 18 U.S.C. § 1001.
E. Application Requirements
Application forms and instructions are available on the CHIPS Incentives Program application
portal. FAQs, guides, and templates are available at https://www.chips.gov. Applicants will
provide information to the CHIPS Incentives Program application portal via web forms,
populating required templates, and uploading narrative documents and other required or
supporting attachments. The following sections describe the information that will be required as
part of the submissions for concept plans and full applications.
All application materials must be submitted electronically via the CHIPS Incentives Program
application portal. In addition to the requirements set forth below, during the application review
process the Department may request additional records and information necessary for fulfilling
the purposes of this NOFO.
F. Requirements for Attachments Submitted through the CHIPS Incentives Program
Application Portal
Requirements for attachments submitted through the CHIPS Incentives Program Application
Portal can be found at Chips.gov.
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G. Content and Form of Concept Plan
The concept plan allows the Department to evaluate proposed projects and invite those most
likely to receive an award to advance to the full application phase.
Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or
modernize a facility eligible for funding under this NOFO must submit an individual concept
plan. Consortium applicants will be required to provide details about their consortium in a
separate consortium narrative.
Concept plans must be submitted through https://applications.chips.gov.
The concept plan includes information input via web forms on the CHIPS Incentives Program
application portal and the following information:
1. Cover Page
The cover page will be input directly via a web form on the CHIPS Incentives Program
application portal.
2. Consortium Narrative (if applicable)
Consortium members must also upload a separate consortium narrative of no more than 5 pages.
The consortium narrative must include the following information, and each member is
responsible for ensuring consistency across all related applications:
• The individual entities that are members or proposed members of the consortium and the
roles of each entity58
• A narrative description of the consortium’s overall strategic vision; how that vision aligns
with the Department’s economic and national security objectives; and the relevance of
each proposed project to that vision
Include an explanation of why the proposed projects are necessary to advance the
o
consortium’s vision, and why CHIPS funding is necessary to incentivize the
relevant investment
For consortia that include a state and/or local government (including quasi-
o
governmental) entity, this narrative should also list any actions that entity is
taking or intends to take to facilitate cluster development, such as efforts to
coordinate with suppliers on site selection, infrastructure development, workforce
development, permitting, and/or community engagement
• The structure of the consortium, including how members intend to coordinate and/or
collaborate with one another
58 The Department will not require consortia to be fully formed at the concept plan phase. Consortium applicants
should simply list the members or proposed members that are part of the consortium’s current plan. If a consortium
wishes to add additional member(s) after they have submitted their concept plan, they should indicate any additions
in the full application consortium narrative.
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3. Concept Plan Details
Each applicant must submit a project plan of no more than 15 pages that describes the project for
which CHIPS Incentives funds are being requested. Attachments such as the Project Sources and
Uses of Funds spreadsheet are not included in this page limit.
The project plan must contain the following information:
• Description of Project: A description of the construction, expansion, or modernization
activities proposed, including a description of the facility location and existing or
required infrastructure. This description should include the products that the facility
produces or will produce and their end market application, along with information on the
scale, size, and capacity of production.
• Applicant Profile: A brief description of the applicant, including identification of its
headquarters, primary officers, ownership (publicly traded or privately held, including
main shareholders), main business lines, and main countries of operation. For applicants
that are a subsidiary of another entity, this information should be provided for the
ultimate corporate parent as well.
• CHIPS Incentives Justification: A summary narrative explaining how the CHIPS
Incentives requested will incentivize the applicant to make investments in the facility and
equipment in the United States that would not occur in the absence of the incentives. If
relevant, include other ways that the requested incentives would change the nature, scale,
or speed of the investment.
• Economic and National Security: A narrative description of how the proposed project
will further the economic and national security objectives of the United States, as
described in Section I.C.1. Applicants should describe, in particular, how the proposed
project will help strengthen supply chain resilience, advance U.S. technology leadership,
and/or support vibrant U.S. fab clusters.
• Commercial Viability: A narrative description of the demand drivers for the output of the
facility with as much specificity as is available on end markets and customer demand.
Evidence of customer demand could include key off-take agreements, letters of reference
or intent, or a list of top customers for each major product and associated volumes (any
such items should be included in an appendix). The narrative should also explain how the
project will reach sufficient scale to be commercially viable over the long term.
• Project Feasibility and Readiness: A narrative description explaining why the proposed
project is technically feasible, including a notional construction schedule; an explanation
of the experience and qualifications of key management personnel, including experience
with projects of similar size and scope; a list of any comparable facilities previously
commissioned by the applicant or its parent companies; and any evidence that the
applicant has the ability to effectively manage the environmental review process.
• Availability of Funds: Provide the information listed below about capital investment and
capital sources via the Project Sources and Uses of Funds spreadsheet template available
on the CHIPS Incentives Program application portal. In addition, provide a narrative that
details specific, credible evidence of the availability of the listed sources of funds. That
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evidence could include, for example, company financials demonstrating the availability
of cash; commitment letters; or other approaches to accessing the required funding.
Capital Investment: The costs required to complete the construction, expansion, or
o
modernization of the project and initiate operation, broken down by category such
as land, construction (e.g., labor and material), equipment, infrastructure
improvements (e.g., utility plants, access to infrastructure, or wastewater
treatment plants), and administrative expenses directly attributable to the
construction, expansion, or modernization (e.g., legal, engineering, and permitting
fees).
Project Capital Sources: Total project capital sources should be greater than the
o
capital investment costs described above (in the full application, the Department
will expect total project capital sources to equal the sum of capital investment,
operating losses and other cash outflows until cash flow breakeven, and
workforce development costs), and should include, for example, CHIPS
Incentives; equity from the applicant, its parent, and any third parties; debt
financing from the applicant or corporate parents; state and local government
incentives; the Investment Tax Credit; and any other sources of funds, such as
customer pre-payments.
H. Content and Form of Full Application Submission
This section provides instructions and details for submission of full applications to the CHIPS
Incentives Program. Based on the review of concept plans, the Department will invite selected
applicants to submit a full application. Applicants not invited to submit a full application will be
notified that they have been eliminated from consideration in this competition.
The full application includes a series of sections, each described below. Page limits are provided
where applicable. Sections should be accompanied by relevant attachments that substantiate
information in the narrative section, which do not count toward the page limit. All application
materials must be submitted through the CHIPS Incentives Program application portal.
Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or
modernize a facility eligible for funding under this NOFO must submit a separate application.
Consortium applicants will be required to provide details about their consortium in a separate
consortium narrative.
Applicants should make efforts to complete the process of registering for the System for Award
Management (SAM.gov), including obtaining a Unique Entity Identifier (UEI), prior to
submitting a full application. For consortium applicants, SAM.gov registrations are required for
all members seeking CHIPS Incentives for the construction, expansion, or modernization of a
facility eligible for funding under this NOFO.
Applicants are strongly encouraged to begin the process of registering for SAM.gov as early as
possible. While this process ordinarily takes between three days and two weeks, in some
circumstances it can take six or more months to complete due to information verification
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requirements. The Department is unable to issue a CHIPS Incentives Award to an entity that
lacks an active SAM.gov registration.
A summary table of the application structure is provided below:
1. Cover Page
2. Consortium Narrative (if applicable)
3. Covered Incentive
4. Description of Project
5. Applicant Profile
6. Alignment with Economic and National Security Objectives
7. Commercial Strategy
8. Financial Information
9. Project Technical Feasibility
10. Workforce and Community Investments
11. Standard Forms
1. Cover Page
The cover page will be input directly via a web form on the CHIPS Incentives Program
application portal.
2. Consortium Narrative (if applicable)
Consortium members must also upload a separate consortium narrative of no more than 8 pages.
The consortium narrative must include the following information, and each member is
responsible for ensuring consistency across all related applications. If there have been no
updates, consortium members may simply resubmit the narrative they submitted as part of the
concept plan:
• The individual entities that are members of the consortium and the roles of each entity
• A narrative description of the consortium’s overall strategic vision; how that vision aligns
with the Department’s economic and national security objectives; and the relevance of
each proposed project to that vision
Include an explanation of why each proposed project within the consortium is
o
necessary to advance the consortium’s vision, and why CHIPS funding is
necessary to incentivize the relevant investment
For consortia that include a state and/or local government entity, this narrative
o
should also list any actions that entity is taking or intends to take to facilitate
cluster development, such as any efforts to coordinate with suppliers on site
selection, infrastructure development, workforce development, permitting, and/or
community engagement
• The structure of the consortium, including how members intend to coordinate and/or
collaborate with one another
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• If applicable, any documentation and evidence of the planned operating model, such as
the governance structure, decision-making authority/rights, contractual obligations,
financial obligations, roles and responsibilities, and any memoranda of understanding
Letters of commitment must be attached from all entities responsible for executing portions of
the proposed scope of work. For consortium applicants, this includes letters from other
applicants in the consortium confirming their participation in the consortium.
3. Covered Incentive
Each applicant must provide a letter from a state or local government entity offering a qualifying
covered incentive, indicating the estimated size and nature of the incentive.59 For consortium
applicants, the covered incentive requirement may be satisfied by one offer letter that names all
facilities in the consortium applying for CHIPS Incentives funding.
4. Description of Project
The applicant must submit a detailed description of the project proposed in the application. The
description should be no longer than 3 pages and contain the following information:
• Description of Project: A description of the construction, expansion, or modernization
activities proposed, including a description of the facility location and existing or
required infrastructure. This description should include the products that the facility
produces or will produce and the end market application and top customers for those
products, along with information on the scale, size, and capacity of production.
• Project Timeline: A detailed description of the overall timeline and key milestones
inclusive for the project, for both the capital expenditure components of the project and
the workforce development and/or operational cost components of the project.
5. Applicant Profile
Provide the following information for the applicant. If the applicant is a subsidiary, this
information should be provided for the applicant, its ultimate corporate parent, and any key
intermediate entities:
• Descriptive Information About the Applicant: Information related to the applicant’s
businesses, including but not limited to company name, corporate form, jurisdiction of
formation, description of key business activities, year established, headquarters
country/state/city, countries/U.S. states of operation, and number of employees. In
addition, the application should include a brief description of the applicant’s and (if
applicable) its parent company’s business profile, key products manufactured, end
59 See 15 U.S.C. § 4652(a)(2)(B)(ii)(I). The offer of a covered incentive may be contingent; if so, any contingencies
need to clearly be specified in the letter. Further, prior to receiving a CHIPS Incentives Award, the applicant may be
required to provide additional information demonstrating to the Department’s satisfaction that the covered incentive
has been or will be received.
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markets, and competitors, as well as any existing or planned business operations in
foreign countries of concern.
• Ownership, Legal Entity, and Organizational Structure: The applicant should provide a
formal legal entity and organizational structure detailing all parent companies,
subsidiaries, and affiliates and other relevant entities, including associated ownership of
those entities, up to the top shareholder(s) and the ultimate corporate parent (if
applicable). In addition, the applicant should outline recent and upcoming organizational
changes, including mergers and acquisitions and any recent or proposed changes to
corporate structure. Applicants should provide this information in the form of detailed
charts and accompanying narrative explaining the legal entity and organizational
structure.
• Past Project History: A summary of any facilities comparable to the proposed project
facility commissioned by the applicant or its parent companies in the last five years,
including details on type of production and output, years in operation, location, project
cost, and summary financials.
• Covered Entity Status: An explanation of how the applicant qualifies as a “covered
entity,” including a demonstration of the applicant’s ability to substantially finance,
construct, expand, or modernize the facility proposed.60 Such a showing could include,
for example, evidence of prior experience successfully managing and completing
comparable projects, expertise of a scientific and technical nature that is applicable to the
proposed project, or sufficient committed financing for the project outside of CHIPS
Incentive Request.
• Company Financials: If available, audited consolidated financial statements at fiscal year-
end for each of the last two years, and interim financial statements for the current fiscal
year.61
• Equity Capital Structure: Information on major shareholders, number of shares
outstanding, share price history, and market valuation (or estimated private valuation) at
year-end for the last two years, if available.
• Outstanding Debt: Schedule listing outstanding debt, lines of credit, other material
indebtedness, guarantees, or (material) off-balance sheet liabilities, along with the
expected cost for those liabilities.
6. Alignment with Economic and National Security Objectives
Describe how the project meets economic and national security objectives in no more than 10
pages. Consistent with the program priorities set forth in Section I.C.1, this should include how
the project will (a) support vibrant U.S. clusters and/or the broader U.S. ecosystem, (b)
strengthen supply chain resilience, and/or (c) advance U.S. technology leadership. Applicants
should note any commitments that have made or intend to make in CHIPS R&D initiatives,
including commitments to participate in the NSTC.
60 See 15 U.S.C. § 4651(2).
61 If an applicant does not have access to audited consolidated financial statements, they must explain why not.
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In addition, applicants should specifically discuss the following aspects of their project:
• Cybersecurity. Applicants should review the NIST Framework for Improving Critical
Infrastructure Cybersecurity62 and describe their cybersecurity practices. Applicants
should cite applicable laws, regulations, standards, NIST guidance or Cybersecurity and
Infrastructure Security Agency (CISA) recommendations and cybersecurity performance
goals.63 The applicant should provide a brief assessment of any major risks identified,
including mitigation strategies (e.g., access control, network segmentation, contingency
planning, disaster recovery plans, redundant capacity, cyber insurance, employee
training, and continuous monitoring).
Applicants should also detail operational security measures and efforts to continuously
assess and protect data.
• Supply Chain Resilience and Risk Management. An application must demonstrate,
with respect to the project proposed, that the applicant has an executable plan to identify
and mitigate relevant supply chain security risks, such as risks associated with access,
availability, confidentiality, integrity, and a lack of geographic diversification in its
supply chain.64 This plan should provide information addressing its organizational
approach to managing supply chain risk, resilience, and security, and how this will
support the proposed project. The applicant should demonstrate its ability to continue
operating in the United States without access to non-U.S. facilities and personnel. The
applicant should also identify key suppliers; demonstrate access to power, water, air
strips, and material transportation channels; and list its risk management strategies to
minimize and mitigate adversarial attempts to degrade, exploit, or compromise the supply
chain, including the introduction of counterfeit and/or malicious items into the supply
chain.
The applicant should also identify its corporate approach to managing supply chain risk,
resilience, and security, including any senior executive leaders responsible for managing
supply chain risk. The applicant should also include information about its relationship
with suppliers (such as long-term contracts and/or mechanisms for information-sharing)
to prevent and promote agile response to unexpected situations.
• Foreign Control. Each applicant should identify any foreign entity65 that exercises
control over the applicant or a proposed project or has access to confidential information
about the proposed project. The applicant should also identify any potential transactions
occurring during the application process that could result in such control by a foreign
entity or sharing of confidential information with a foreign entity.
62 NIST, U.S. Dep’t of Commerce, Version 1.1, Framework for Improving Critical Infrastructure Cybersecurity
(2018).
63 Cross-Sector Cybersecurity Performance Goals.
64 See 15 U.S.C. § 4652(a)(2)(B)(iii).
65 See 15 U.S.C. § 4651(6).
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7. Commercial Strategy
An application must demonstrate that the applicant has an executable plan to sustain the
proposed facility without additional CHIPS Incentives.66 A sound commercial strategy is a
component of having an executable plan. Each applicant must describe its commercial strategy,
including information on customer and end-market demand, volume growth, pricing dynamics,
competitive positioning, and supply dynamics, for the proposed project. This strategy must
identify the type of semiconductor materials or equipment the applicant will produce at the
project facility and the customers, or categories of customers, for those materials or equipment.67
In no more than 3 pages, this section should discuss the following topics:
• End-Market Demand: Information on end market industries and projected growth.
Specify what percentage of the project’s output will serve the semiconductor industry,
and explicitly reference the top customers for each major product and associated volumes
(to the extent known). In an appendix, provide any concrete evidence of customer
demand, such as off-take agreements, letters of reference or intent, or other pre-purchase
commitments.
• Market Position and Competitor Landscape: Include an assessment of key competitors,
market dynamics (including the applicant’s relative place in the market), supply and
demand dynamics over time, and pricing trends and exposure to pricing pressure during
downturns.
8. Financial Information
A sound financial plan is also a component of having an executable plan to sustain the proposed
facility without additional CHIPS Incentives.68 Each applicant must provide a financial plan in
no more than 5 pages (excluding attachments and appendices). The plan should include sources
and uses of funds, cash flow projections, key return and debt service metrics, and the amount of
the CHIPS Incentives request. The applicant should also provide supporting evidence for any key
assumptions.
• Project Sources and Uses of Funds: Provide the information listed below about project
costs and capital sources via a descriptive narrative and by filling out and uploading the
Project Sources and Uses of Funds spreadsheet template available on the CHIPS
Incentives Program application portal.
Project Costs: Project costs should include, but are not limited to:
o
 Capital Investment: Costs required to complete construction of the project
and initiate operation, broken down by category such as land,
construction, equipment, infrastructure improvements, and administrative
expenses directly attributable to the project construction.
 Operating Losses and Other Cash Outflows until Cash Flow Breakeven:
Estimated operating losses/cash outflows, including upgrade investments,
66 See 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
67 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V).
68 See 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
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maintenance, interest expenses, and working capital once the project is
operationalized until cash flow breakeven.
 Workforce Development Costs: Spending by the applicant on workforce
development activities to support the proposed project.
Project Capital Sources: Total project capital sources should equal the project
o
costs described above and should include, as applicable, any sponsor equity; debt
funding; third-party equity; state and local government incentives; the Investment
Tax Credit; CHIPS Incentives; and any other sources of funds, such as from
customers or suppliers.
• Financial Model: Applicants may submit their own financial model but have the option of
using the Pre-Application Example Financial Model available on CHIPS.gov. Financial
models must include a summary of the expected revenues (broken down by number of
units sold and price per unit), costs, and cash flows for the project, including key income
statement, cash flow statement, and balance sheet information. Also provide a summary
narrative and supporting evidence for key assumptions underlying these projections.
• CHIPS Incentives Request:
Provide a narrative description for how the financial information submitted for the
o
project supports a conclusion that a CHIPS Direct Funding award will incentivize
the applicant to make investments in facilities and equipment in the United States
that would not occur in the absence of the incentives.
Applicants requesting an award of more than 10 percent of project capital
o
expenditures must explain (a) why their project is particularly compelling from an
economic and national security perspective and (b) why the additional
incremental amount of CHIPS Incentives is necessary to make the project
commercially viable.
Provide a description of specific efforts to date to bring other capital (debt, state
o
and local incentives, other private capital) into the project and how the CHIPS
Incentives request would enable and not displace those other funding sources. In
addition, applicants requesting an award of more than 10 percent of project capital
expenditures must explain how they intend to fill the funding gap if the
Department ultimately issues them an award of only 10 percent.
9. Project Technical Feasibility
The applicant must demonstrate the technical feasibility of the proposed project. In no more than
8 pages (excluding attachments to support details), the applicant should include the following:
• A description of the product to be made and the applicant’s relevant experience and
expertise to support successful execution at the scale envisioned in the application
• A construction plan, including the location of project facilities, a detailed description of
the major engineering, construction, and site preparation activities linked to specified cost
and other milestones and performance guarantees; a construction schedule; a list of key
management personnel, partners, contractors, and suppliers; and an inventory of all
Federal, state, and local permits, licenses, and approvals required to site, construct,
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implement, and operate the facility. The applicant should include one-page resumes for
(a) all key construction management personnel and (b) all key personnel of contractors
and any other entities that will play substantial roles in the construction of the project.
• An operation management plan, including a description of the managerial oversight and
governance for the operation of the project from the completion of construction through
the life of the facility. Include an organizational chart of management and other key
personnel for the facility, including contractors and any other entities that will play
substantial roles in operating the proposed project. List the experience and qualifications
of key management personnel, including experience with projects of similar size and
scope.
• A description of whether and how they intend to utilize domestically produced iron, steel,
and construction materials as part of their projects.
Environmental Questionnaire: Each applicant must also provide the requested information in the
Environmental Questionnaire using the appropriate template on the CHIPS Incentives Program
application portal: one template is for applicants proposing to construct a new facility, and one is
for applicants proposing to expand or modernize an existing facility. Applications will be judged
on the merits of the responses to the Environmental Questionnaire, including on the quality of
proposed efforts to implement climate and environmental responsibility practices. The purpose
of the Environmental Questionnaire is to ensure that the Department is aware of relevant
environmental considerations and can work with the applicant to ensure that they can provide all
required environmental information during application review and due diligence. While the
applicant is not expected to have complete information regarding all questions, more thorough
responses will reduce the likelihood of unexpected delays at later phases, which may result if the
Department determines that the project poses environmental concerns that have not been
adequately disclosed, or that the information submitted is insufficient to assess the potential
environmental impacts. The Department will fund only activities for which it is able to complete
any necessary environmental review. The Department encourages applicants to consult with
internal or external subject matter experts in preparing answers to the questionnaire.
In responding to the Environmental Questionnaire, applicants are encouraged to describe the
design features, construction methods, and operation strategies that the applicant will employ to
increase resilience from weather- and climate-related risks and to describe metrics and processes
the applicant will use to measure and track any climate and environmental responsibility goals
and commitments.
10. Workforce and Community Investment Plan
Each applicant must submit a workforce and community investment plan with the components
set forth below.
The plan for workforce and community investment should not exceed 8 pages in total, excluding
any attachments. As appropriate, it should also identify any strategic partners the applicant has
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worked with in crafting workforce strategies, including but not limited to labor unions,
workforce development organizations, state and local workforce boards, educational institutions,
semiconductor fabrication facilities, and other relevant entities.
For applicants applying as a member of a consortium: See Section I.B.5 for information on
which of the following requirements may be satisfied at the consortium level.
a. Facility Workforce
The portion of the workforce and community investment plan covering the applicant’s facility
workforce must include the following components:
(1) Workforce Commitments
The CHIPS Act requires the applicant to make commitments to worker investments, including
through training and education benefits paid by the applicant and programs to expand
employment opportunities for economically disadvantaged individuals.69 The applicant must
specifically describe its financial and programmatic commitments to satisfy this requirement.
The CHIPS Act also requires the applicant to secure “commitments from regional educational
and training entities and institutions of higher education to provide workforce training, including
programming for training and job placement of economically disadvantaged individuals.”70 The
applicant must attach letters of commitment from education and training entities and institutions
that detail the specific tasks they will perform in support of the applicant’s workforce strategy
and the resources that will be provided.
(2) Workforce Strategy
The applicant must describe a workforce strategy that is consistent with, and builds upon, the
commitments described above.71 The strategy should address each of the following:
(i) Workforce Needs Assessment
A high-level assessment of the workforce needs of the project (job types, skills, and workers
required over time in each job type), including the necessary workforce for facility operations,
on-site supplier operations, engineering, administration, and others.72
(ii) Recruitment, Retention, and Training Approach
The applicant should explain its overall approach to recruiting, retaining, and training a diverse
and skilled workforce to meet the needs described above. In addition, it should explain how its
workforce commitments fit into that approach. Where possible, the applicant may consider
identifying existing, successful training programs that can be scaled and adapted to meet the
applicant’s needs. Applicants may also consider partnering with programs that train workers with
69 See 15 U.S.C. § 4652(a)(2)(B)(ii)(II).
70 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
71 See 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).
72 See 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).
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the needed skills and provide career pathways, such as Registered Apprenticeships, pre-
apprenticeships with a strong relationship with one or more Registered Apprenticeship programs,
or other programs (including those at community colleges, technical colleges, and high schools)
with a successful track record putting people on the path to good jobs. They may also consider
using work-and-learn training models and, where appropriate, portable, stackable credentials. As
part of their description of their training approach, applicants must describe any wraparound
services and/or other barrier reductions (such as transportation assistance) that they or their
partners plan to provide directly or to arrange for the provision of through other sources (e.g., the
public workforce system or community-based groups).73 Wraparound services support facility
workers’ access to and completion of training, as well as transition into and progression in a job.
In laying out its approach to recruitment, retention, and training, the Department encourages the
applicant to address several well-known workplace barriers. Accordingly, the applicant should
reflect commitments to ensuring that all workers have access to a safe environment that is free of
harassment, discrimination, and retaliation; setting clear expectations about workplace conduct
and anti-harassment policies, including consequences for violating policies; and setting clear
procedures for reporting misconduct in the workplace.
(iii) Job Quality Approach
The Departments of Labor and Commerce’s Good Jobs Principles74 provide a framework to
ensure semiconductor facility jobs are high quality. The applicant should describe their approach
to meeting these principles for newly created jobs and to increase job quality for existing jobs at
expanded facilities. Additional details on the dimensions of job quality are available on
Department of Commerce’s website.75
(iv) Metrics and Milestones
CHIPS Incentives awardees will be expected to collect data that will inform the evaluation of
their workforce efforts and help track the success of their workforce commitments, including
demographically disaggregated data on project workforce. The Department will provide
additional guidance on metrics at the time of award.
b. Construction Workforce
For concept plans that the Department determines involve more than an incidental amount of
construction, the workforce and community investment plan must also discuss the applicant’s
strategy for investing in its construction workforce. This portion of the plan must include the
same items in the workforce strategy discussed above: i) Workforce Needs Assessment; ii)
Recruitment, Retention, and Training Approach; iii) Job Quality Approach; and iv) Metrics and
Milestones. Applicants should also address whether they commit to having a project labor
agreement. For applications that do not commit to using project labor agreements, the
73 For more information on wraparound services, see p. 30-31 of the CHIPS Workforce Development Guide.
74 U.S. Department of Labor, Good Jobs Principles, (2022).
75 U.S. Department of Commerce, Job Quality Toolkit, (2022).
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Department will be particularly interested in understanding what measures the applicant intends
to take to ensure workforce continuity and reduce the risk of delays in project delivery.
As part of their construction workforce plan, applicants are strongly encouraged to describe any
steps that will be taken to ensure that all contractors and subcontractors on the construction
project have and will continue to have a strong track record of compliance with all Federal labor
laws, including but not limited to all relevant provisions, rules, and regulations of the Davis-
Bacon Act, Executive Order 11246, and the Occupational Safety and Health Act, and the steps
that will be taken to prevent the misclassification of workers.
c. Community Investment
Each applicant must describe its commitments to community investments.76 The applicant
should identify how its community investments support regional economic resilience and broad-
based growth and describe any engagement with local stakeholders to design such investments.
Strong applications will include, as an attachment, any community benefits agreements and/or
letters of support from community-based organizations and local officials. Where applicable,
applicants should also discuss how their community investments align with ongoing state and
local economic development programs.
Community investments may include but are not limited to the applicant’s investments in any of
the following: local workforce or education systems, climate and environmental responsibility,
child care, affordable housing, and other efforts to unlock barriers to economic participation and
support a community’s long-term growth. Ideal investments would demonstrate a clear link
between CHIPS Incentives Program goals and the underlying economic characteristics of a
region.
Creating Inclusive Opportunities for Businesses. To ensure that the CHIPS Incentives Program
generates benefits for a broad range of stakeholders and communities, applicants are strongly
encouraged to describe any proactive steps they will take to ensure that small, minority-owned,
veteran-owned, and women-owned businesses are included in the overall project, including how
it intends to track and disclose such data.77
11. Standard Forms
All applicants should submit standard forms as follows:
• SF-328, Certificate Pertaining to Foreign Interests
• CD-511, Certification Regarding Lobbying. Enter “2023-NIST-CHIPS-SMME-01” in the
Award Number field. Enter the title of the application, or an abbreviation of that title, in
the Project Name field
• SF-LLL, Disclosure of Lobbying Activities (if applicable)
76 See 15 U.S.C. § 4652(a)(2)(B)(ii)(II).
77 See CHIPS Act of 2022, Sec. 104(c)(3).
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In addition, applicants may be required to submit additional standard forms, such as the SF-424
and SF-424A/C/D, during the application review process.
I. Funding Restrictions
Funds made available under the CHIPS Incentives Program may be spent only on eligible uses.
See Section I.B.6. In addition, funds made available under the CHIPS Incentives Program may
not be used to:
• construct, modify, or improve a facility outside of the United States78
• physically relocate existing facility infrastructure to another jurisdiction in the United
States, unless the project is in the interest of the United States, as determined by the
Department79
• purchase an equity security that is listed on a national securities exchange of an award
recipient or any parent company of such recipient or to pay dividends or make other
capital distributions with respect to the common stock (or equivalent interest) of the
recipient or any parent company of such recipient80
• pay off any Federal direct or guaranteed loan or any other form of Federal debt
Project budgets may not include indirect costs. Applicants with a negotiated indirect cost rate
agreement must ensure all uses of Federal funds are charged as direct costs in the categories
listed in Section I.B.6.
The failure to mention a particular use of funds above does not imply that such use is either
allowable or unallowable. Final determinations on the allowability of particular uses of funds is
at the sole discretion of the Department.
J. Prohibition on Profit and Fees.
Recipients and subrecipients of CHIPS Incentives may not charge, as part of the project budget,
profits, fees, or other incremental charges above the actual costs incurred in executing the
award’s approved scope of work.
This restriction does not impact an award recipient’s ability to earn profits by selling products
produced or manufactured at facilities supported by Federal financial assistance in the ordinary
course of business.
V. Application Review Information
There will be two primary stages of review: the concept plan and the full application.
The Department will score concept plans using a point system and use the Selection Factors in
Section V.B to advance the most promising potential applicants to the full application phase. At
78 15 U.S.C. § 4562(i).
79 15 U.S.C. § 4652(a)(2)(C).
80 See CHIPS Act of 2022, Pub. L. No. 117-167, § 102(g)(1), 136 Stat. 1366, 1378-1379 (2022).
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the full application phase, review will be qualitative and based on (1) an assessment of projects
against the evaluation criteria laid out in Section V.C, and (2) application of the Selection
Factors in Section V.B.
A. Concept Plan Evaluation Criteria
Concept plans will be scored based on the point system described below. Subject to the Selection
Factors listed in Section V.B, the Department will invite a subset of concept plan submissions to
advance to the full application phase. To advance, an applicant must receive a minimum
threshold score in each category, to be determined by the Department once concept plans have
been received and reviewed.
• The extent to which a project advances U.S. economic and national security by
supporting vibrant U.S. fab clusters, strengthening supply chain resilience, and/or
advancing U.S. technology leadership (40 points)
If the project is proposed as part of a consortium, the Department will evaluate
o
the strength of the consortium’s strategic vision and the extent to which the
project is necessary to achieve that vision.
Given the scale of projects eligible under this funding opportunity and the
o
importance of chips clusters for U.S. competitiveness, the Department expects
that most projects will justify their request for funding by outlining their role in
supporting self-sustaining U.S. fab clusters. The Department also welcomes
project proposals that meaningfully contribute to strengthening supply chain
resilience and/or advancing U.S. technology leadership, as well as projects that
advance more than one of these objectives.
• A project’s long-term commercial viability, including the extent to which the concept
plan demonstrates robust customer demand for the proposed project output (20 points)
• The strength and plausibility of the applicant’s justification for why the CHIPS
Incentives requested will incentivize the applicant to make investments in facilities and
equipment in the United States that would not occur in the absence of the incentives (10
points)
• The likelihood that the applicant will successfully execute the proposed projects,
including an assessment of the experiences of the applicant and the extent to which the
applicant has a viable plan to complete the required construction and manage the
environmental review process (15 points)
• The availability and credibility of non-CHIPS funding sources for the project (15
points).
B. Selection Factors
The selection factors the Department will use to (1) advance the most promising applicants to the
full application phase and (2) select full applications for funding, are:
• The mix and breadth of strategic objectives being advanced at the project and/or portfolio
level
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• The likelihood that the proposed project would proceed in substantially similar form
without CHIPS funding
• The extent to which the project’s risk profile impacts the program’s overall portfolio risk
profile
• The extent to which the project meaningfully contributes to the development or
sustainability of a U.S. fab cluster
• The extent to which the project duplicates other projects funded by the Department or
other Federal agencies
• Whether the applicant is a member of a consortium whose strategic vision advances
economic and national security, and the relevance of the proposed project to that vision
• Whether the applicant, or a corporate affiliate of the applicant, has previously received
financial assistance in this program
• The extent to which awards in the program contribute to a diversified portfolio, to include
awards based on geographic location of facilities receiving support
• For consortium applicants, whether the consortium maximizes inclusion of and resources
from relevant stakeholders, including state and/or local government entities
C. Full Application Evaluation Criteria
Full applications will be evaluated holistically and qualitatively based on the evaluation criteria
described below. The Department will use these criteria, in addition to the Selection Factors
listed in Section V.B, to determine whether to recommend an application for award.
• The extent to which an application advances economic and national security by
supporting vibrant U.S. clusters, strengthening supply chain resilience, and/or advancing
U.S. technology leadership
If the project is proposed as part of a consortium, the Department will evaluate the
o
strength of the consortium’s strategic vision and the extent to which the project is
a core element of that vision.
• The extent to which an application addresses national security considerations, including
cybersecurity, operational security, and supply chain resilience
• The extent to which there is a reasonable market environment and demand for the
project’s output, and the extent to which the project serves the semiconductor industry
• The extent of a project’s financial strength, including the comprehensiveness and
reasonableness of the projected capital expenditures; the likelihood that the project will
generate sustainable earnings; and the degree to which the applicant has committed
private investment and/or attracted third-party investment
• The degree to which the request for CHIPS Incentives is necessary to make the project
viable in the United States
• The degree to which a project is feasible to execute, including the extent to which the
applicant and key partners have the necessary experience to complete and operate the
project; the extent to which the applicant has a viable construction plan; the strength of an
applicant’s plans relating to environmental responsibility and climate resilience; and the
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likelihood and extent to which the project could face regulatory delays, such as in a
permitting or environmental review process
• The completeness, cohesiveness, and feasibility of the applicant’s plans for workforce
and community investment, including the strength of the applicant’s strategy for
investing in the project’s facility and construction workforce.
D. Review and Selection Process
Independent reviewers will score concept plans and an Investment Committee will use those
scores and the selection factors to make the final determination regarding which applicants to
advance. Once full applications have been submitted, the Investment Committee will conduct a
merit review and consider whether to advance applications through the process or deny
applications. If the Investment Committee determines that an application is sufficiently
meritorious to be eligible to receive a CHIPS Incentives Award, it will make a recommendation
to a selecting official. The selecting official must approve an application prior to issuance of a
CHIPS Incentives Award. The following sections describe this process in greater detail.
1. Concept Plan Review
Concept plans will receive an initial review upon receipt for eligibility, completeness, and
responsiveness to this NOFO, including the program priorities (see Section I.C). Concept plans
determined to be ineligible, incomplete, or nonresponsive will be rejected. However, the
Department, in its sole discretion, may continue the review process for a concept plan that is
missing non-substantive information, the absence of which may easily be rectified during the
review process.
A minimum of three independent reviewers will conduct an individual merit assessment of each
concept plan that passes the initial review using the point system in Section V.A. The review
process may include consultation with outside contractors or experts if deemed necessary to
assist in the merit assessment.
An Investment Committee shall use those scores, in addition to any Selection Factors (Section
V.B), to make a written determination that:
• A concept plan should advance to the full application phase
• A concept plan should not advance to the full application phase, which shall be a final
and non-appealable decision81
2. Full Application Review
Full applications will receive an initial review upon receipt for eligibility, completeness, and
responsiveness to this NOFO, including the program priorities (see Section I.C). Full
applications determined to be ineligible, incomplete, or nonresponsive will be returned to the
applicant. However, the Department, in its sole discretion, may continue the review process for a
81 Further submissions by the same applicant for the project proposed in a concept plan the Department chooses not
to advance will not be reviewed or considered.
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full application that is missing non-substantive information, the absence of which may easily be
rectified during the review process.
An Investment Committee will conduct a qualitative merit assessment of each full application
that passes the initial review against the evaluation criteria in Section V.C. The Department may
contact applicants at any point during the process to obtain additional or clarifying information.
The review process may include interviews with applicants and consultation with outside
contractors or experts if deemed necessary to assist in the merit assessment.
The Investment Committee will make a written determination, based on the qualitative
assessment, the program requirements, the evaluation criteria (Section V.C) and one or more of
the prioritization and selection factors (Section V.B), that:
• The application appears eligible for an award and should advance to the due diligence
phase
• The application appears eligible for an award and should be held for further consideration
• The application should be denied, which shall be a final and non-appealable decision82
The Department may work with applicants throughout the review and selection process to
maximize the chance of achieving the program’s economic and national security objectives,
including, for example, through discussing changes to application scope.
3. Due Diligence
Before entering into a final award for funding, the Department will conduct due diligence of the
full application for—including, but not limited to—national security risks, financial and
commercial information, environmental impacts, and other issues, to inform a final
determination on whether to make a CHIPS Incentives Award and on what terms.
An invitation to the due diligence phase is not an assurance of funding. During the diligence
phase, the Department will work directly with applicants to obtain all information required at this
stage. Due diligence may also include obtaining information from sources other than the
applicant. The Investment Committee may receive updates throughout this process. The
Department may use the services of financial, commercial, technical, environmental, or other
consultants or contractors and outside legal counsel in the due diligence phase. Applicants may
be required to contribute to payment for these services. Information about the services and their
costs will be provided to applicants upon or before entering the due diligence phase. Applicants
may withdraw their application if they are asked to pay for these services and do not agree to do
so.
When the due diligence phase is substantially complete, the Department and the applicant will
negotiate the applicable terms of the CHIPS Incentives Award.
82 Further submissions by the same applicant for the project proposed in a denied application will not be reviewed or
considered.
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4. Award Preparation and Issuance
After the due diligence phase, the Investment Committee may recommend an application to the
selecting official, who must approve any applications for funding under this NOFO. The
selecting official may accept, modify, or reject a recommendation of the Investment Committee,
or return the recommendation for further evaluation, negotiation, or due diligence. In considering
a recommendation, the selecting official may consider any information available.
The awarding of the CHIPS Incentives Award occurs upon the issuance of Form CD-450 or
comparable award form by a NIST authorizing officer. The award decisions of the NIST
authorizing officer are final and may not be appealed.
The Department will provide any notice to Congress required under the CHIPS Act.83
E. Responsibility / Qualification Records on SAM.gov
In considering applications, the Department will consider the record of the applicant, as well as
of its corporate parent, in executing programs or activities under Federal grants, cooperative
agreements, procurement awards, and other transactions, as well as its integrity and business
ethics. As part of this consideration, prior to making a CHIPS Incentives Award, the Department
will review and consider the non-publicly available information about that applicant in the
designated integrity and performance system accessible through Responsibility / Qualification
Records on SAM.gov (formally the Federal Awardee Performance and Integrity Information
System (FAPIIS)). This review may also include the applicant’s corporate parent or affiliates that
are under common ownership and control. Each applicant, at its option, may review information
in the designated integrity and performance system accessible through SAM and comment on
any information about itself that a Federal awarding agency previously entered and is currently
in the designated integrity and performance system accessible through SAM. The Department
will consider any comments by the applicant, in addition to the other information in the
designated integrity and performance system, in making a judgment about the applicant’s
integrity, business ethics, and record of performance under Federal awards.
F. Additional Information
Any decision by the Department to deny an application shall be final and non-appealable.
Unsuccessful applicants will be notified of a denial by e-mail and will have the opportunity to
receive a debriefing. Unsuccessful applications will be retained in accordance with Department
of Commerce recordkeeping requirements.
VI. Federal Award Administration Information
Information regarding federal award notices, administrative and national policy requirements,
funding availability and limitation of liability, and reporting requirements may be found on
CHIPS.gov, which is incorporated by reference into this NOFO.
83 E.g., 15 U.S.C. § 4652(a)(2)(C)(i)(III).
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A. Federal Awarding Agency Contacts
Please direct programmatic inquiries to:
Michael Schmidt
Director, CHIPS Program Office
CHIPS Program Office
National Institute of Standards and Technology
Herbert C. Hoover Building
1401 Constitution Ave, NW
Washington, D.C. 20230
Phone: (301) 975-2000
Email: AskChips@chips.gov
Please direct grant management inquiries to:
Gilberto Castillo
Group Leader/Grants Management Officer
Grants Management Division
National Institute of Standards and Technology
100 Bureau Drive
Gaithersburg, MD 20899
Phone: (202) 281-8505
Email: AskChips@chips.gov
Please direct media inquiries to:
Matt Hill
Communications Director
CHIPS Program Office
Herbert C. Hoover Building
1401 Constitution Ave, NW
Washington, D.C. 20230
Phone: (202) 603-7640
Email: Matt.Hill@chips.gov
VII. Appendix
A. Definitions
• covered entity – a nonprofit entity; a private entity; a consortium of private entities; or
a consortium of nonprofit, public, and private entities with a demonstrated ability to
substantially finance, construct, expand, or modernize a facility relating to
fabrication, assembly, testing, advanced packaging, or production of semiconductors,
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materials used to manufacture semiconductors, or semiconductor manufacturing
equipment.
• covered incentive – an incentive offered by a governmental entity to (A) a covered
entity, for the purposes of constructing within the jurisdiction of the governmental
entity, or expanding an existing facility within that jurisdiction, a facility described
under “covered entity;” and (B) a workforce-related incentive (including a grant
agreement relating to workforce training or vocational education), any concession
with respect to real property, funding for research and development with respect to
semiconductors, and any other incentive determined appropriate by the Secretary, in
consultation with the Secretary of State.
• economically disadvantaged individuals – individuals whose ability or opportunity to
compete in the economy has been impaired due to an individual’s (1) membership in
a group that has been subjected to racial or ethnic prejudice or cultural bias within
American society; (2) gender; (3) veteran status; (4) limited English proficiency; (5)
disability status; (6) long-term residence in an environment isolated from the
mainstream of American society; (7) membership in a Federally or state-recognized
Indian Tribe; (8) long-term residence in a rural community; (9) residence in a U.S.
territory; (10) residence in a community undergoing economic transitions (including
communities impacted by the shift toward a net-zero economy or deindustrialization);
(11) individuals without a college degree; or (12) membership in another
“underserved community,” as defined in Executive Order 13985.
• materials used to manufacture semiconductors – the chemicals, gases, raw and
intermediate materials, and other consumables used in either the front- or back-end
fabrication of semiconductors. Specific examples include but are not limited to
polysilicon; photoresists and ancillaries (developers, strippers, litho solvents, and
anti-reflective and hardmask layers); sputtering targets (including tantalum, titanium,
and aluminum); and materials specifically used in quantum information systems (such
as hafnium and niobium).
• minority-owned business – a business where not less than 51 percent of the
ownership or control of which is held, directly or indirectly, by one or more minority
individuals; and not less than 51 percent of the net profit or loss of which accrues to
one or more minority individuals.
• Secretary – the Secretary of Commerce.
• semiconductor – an integrated electronic device or system, most commonly
manufactured using materials such as, but not limited to, silicon, silicon carbide, or
III-V compounds, and processes such as, but not limited to, lithography, deposition,
and etching. Such devices and systems include but are not limited to analog and
digital electronics, power electronics, and photonics, for memory, processing,
sensing, actuation, and communications applications.
• semiconductor manufacturing equipment – specialized equipment integral to the
manufacturing of semiconductors and subsystems that enable or are incorporated into
the manufacturing equipment. Specific examples of semiconductor manufacturing
equipment include but are not limited to: (1) deposition equipment, including
Chemical Vapor Deposition, Physical Vapor Deposition, and Atomic Layer
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Deposition; (2) etching equipment (wet etch, dry etch); (3) lithography equipment
(steppers, scanners, extreme ultraviolet); (4) wafer slicing equipment, wafer dicing
equipment, and wire bonders; (5) inspection and measuring equipment, including
scanning electron microscopes, atomic force microscopes, optical inspection systems,
and wafer probes; (6) certain metrology and inspection systems; and (7) ion
implantation and diffusion/oxidation furnaces.
• supply chain – a system of organizations, people, activities, information, and
resources, possibly international in scope, that provides products or services to
consumers in the private and public sectors. For the purposes of this NOFO, the scope
of this definition encompasses any organization that directly contributes to the
lifecycle of a semiconductor, especially focusing on the design, manufacturing, and
packaging processes.
• veteran-owned business – a business where not less than 51 percent of which is
owned by one or more veterans or, in the case of any publicly owned business, not
less than 51 percent of the stock of which is owned by one or more veterans and the
management and daily business operations of which are controlled by one or more
veterans.
• women-owned business – a business where not less than 51 percent of the ownership
or control of which is held, directly or indirectly, by one or more women; and not less
than 51 percent of the net profit or loss of which accrues to one or more women.
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2023-NIST-CHIPS-SMME-01 Amendment

AMENDED NOTICE OF FUNDING OPPORTUNITY (NOFO)
CHIPS Incentives Program – Facilities for Semiconductor Materials and Manufacturing
Equipment
EXECUTIVE SUMMARY
• Federal Agency Name: National Institute of Standards and Technology (NIST), United
States Department of Commerce
• Funding Opportunity Title: CHIPS Incentives Program – Facilities for Semiconductor
Materials and Manufacturing Equipment
• Announcement Type: Amendment
• Funding Opportunity Number: 2023-NIST-CHIPS-SMME-01
• Assistance Listing (CFDA Number): 11.037 – CHIPS Incentives Program
• Dates:
o This amendment re-opens and extends the period of acceptance of applications,
which was originally open from December 1, 2023, through February 1, 2024, so
that concept plans will now be accepted through November 1, 2026.
o For applications that are invited to advance to the full application phase, the
CHIPS Program Office will communicate full application submission dates to
applicants individually upon notifying them of their advancement.
The Department of Commerce may amend this NOFO at any time. It may also close the
funding opportunity with at least 60 days’ notice.
• Application Submission Address: https://applications.chips.gov
Funding Opportunity Description: The CHIPS Incentives Program aims to catalyze long-term
economically sustainable growth in the domestic semiconductor industry in support of U.S.
economic and national security. This is an amendment to the second Notice of Funding
Opportunity under this program. It seeks applications for projects for the construction,
expansion, or modernization of commercial facilities for semiconductor materials and
manufacturing equipment.
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Table of Contents
I. Program Description ........................................................................................................... 3
A. Program Objectives .......................................................................................................... 3
B. Program Summary............................................................................................................ 4
C. Program Priorities ............................................................................................................ 8
II. Federal Award Information .............................................................................................. 11
A. Funding Instrument ........................................................................................................ 11
B. Funding Availability ...................................................................................................... 12
C. Award Amount ............................................................................................................... 12
D. Period of Performance .................................................................................................... 12
III. Eligibility Information ....................................................................................................... 12
A. Eligible Applicants ......................................................................................................... 12
IV. Application and Submission Information ........................................................................ 13
A. How to Access an Application Package ......................................................................... 13
B. Submission Dates and Times ......................................................................................... 13
C. Confidential Information ................................................................................................ 14
D. False Statements ............................................................................................................. 16
E. Application Requirements .............................................................................................. 16
F. Requirements for Attachments Submitted through the CHIPS Incentives Program
Application Portal ..................................................................................................................... 16
G. Content and Form of Concept Plan ................................................................................ 16
H. Content and Form of Full Application Submission ....................................................... 19
I. Funding Restrictions ...................................................................................................... 26
J. Prohibition on Profit and Fees. ....................................................................................... 26
V. Application Review Information ...................................................................................... 27
A. Concept Plan Evaluation Criteria ................................................................................... 27
B. Selection Factors ............................................................................................................ 28
C. Full Application Evaluation Criteria .............................................................................. 28
D. Review and Selection Process ........................................................................................ 29
E. Responsibility / Qualification Records on SAM.gov ..................................................... 31
F. Additional Information ................................................................................................... 31
VI. Federal Award Administration Information................................................................... 31
A. Federal Awarding Agency Contacts .............................................................................. 32
VII. Appendix ............................................................................................................................. 32
A. Definitions ...................................................................................................................... 32
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FULL ANNOUNCEMENT TEXT
I. Program Description
This Notice of Funding Opportunity (NOFO) seeks applications for the CHIPS Incentives
Program, authorized by Title XCIX—Creating Helpful Incentives to Produce Semiconductors
for America of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal
Year 2021 (Pub. L. 116-283, referred to as the CHIPS Act or Act), as amended by the CHIPS
Act of 2022 (Division A of Pub. L. 117-167). The CHIPS Incentives Program is administered by
the CHIPS Program Office (CPO) within the National Institute of Standards and Technology
(NIST) of the United States Department of Commerce (Department).
This NOFO seeks applications for CHIPS Incentives Awards that will support investments in the
construction, expansion, or modernization of commercial facilities in the United States for
semiconductor materials and semiconductor manufacturing equipment. Awards made pursuant to
this NOFO will be in a form consistent with the CHIPS Act.
A. Program Objectives
The CHIPS Incentives Program aims to strengthen U.S. economic and national security,
including economic resilience and competitiveness. The CHIPS Act sets forth multiple
dimensions of this overriding objective:
• Strengthening the security and resilience of the semiconductor supply chain, including by
mitigating gaps and vulnerabilities
• Providing a supply of secure semiconductors relevant for national security
• Strengthening the leadership of the United States in semiconductor technology
• Growing the economy of the United States and supporting job creation in the United
States
• Bolstering the semiconductor and skilled technical workforces in the United States
• Improving the resilience of the semiconductor supply chains of critical manufacturing
industries1
For the CHIPS Incentives Program to be successful on these many dimensions, it must lay the
groundwork for long-term growth and economic sustainability in the domestic semiconductor
industry and promote the secure and resilient supply chains on which the sector relies. The
industry must have a robust and skilled workforce and a diverse base of suppliers for
semiconductor production. It must support research and development (R&D) that will drive
innovation in design, materials, and processes that will accelerate the industries of the future.
And it must support the broader U.S. economy, propelling American workers into high wage
careers, upholding the dignity of hard work, and delivering the talent businesses need to power
the nation’s economic resurgence.
1 See 15 U.S.C.§ 4652(d).
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In addition, for the CHIPS Incentives Program to succeed, the Federal funds invested must serve
as a catalyst to galvanize private, state, and local investment in the semiconductor industry. That
is, the program funds are a supplement to, not a replacement for, other sources of capital.
The CHIPS Incentives Program seeks to fund applicants that demonstrate a commitment to
investment in the United States for the long term and projects that maximize private sources of
capital. Only private industry can marshal the resources necessary to make the sustaining
investments needed in the decades that follow to maintain a resilient, economically viable, and
growing U.S. semiconductor industry.
B. Program Summary
The CHIPS Incentives Program is intended to fund a variety of projects to achieve its economic
and national security objectives. Projects will vary in technology, scale, cost, location, risk,
workforce needs, and other factors. To fund any project, the Department must determine that the
project is in the economic and national security interests of the United States and satisfies the
CHIPS Act’s eligibility requirements, as well as the amount of funding appropriate for the
investment.2
This NOFO describes considerations and procedures the Department will use to make these
determinations. This section summarizes, in a question-and-answer format, certain eligibility and
procedural requirements for applications under this NOFO.
1. What projects are eligible for funding under this NOFO?
This NOFO seeks applications for the construction, expansion, or modernization of commercial
facilities in the United States in the following categories.
Semiconductor Materials Facilities for the manufacture or production, including growth or
extraction, of materials used to manufacture semiconductors, which are the chemicals, gases, raw
and intermediate materials, and other consumables used in semiconductor manufacturing.
Semiconductor Manufacturing Equipment Facilities for the physical production of
specialized equipment integral to the manufacturing of semiconductors and subsystems that
enable or are incorporated into the manufacturing equipment.
Note that the Department will not fund applications that lack sufficient scale to meaningfully
contribute to the objectives outlined in this NOFO. The Department expects that projects with
capital investments below $20 million are unlikely to meet this standard. If a sub-$20 million
project does meet this standard, the Department generally expects other stakeholders—including
chipmakers, larger suppliers, and state and local entities—to make the project viable without
CHIPS funding.
2 See 15 U.S.C. §§ 4652(a)(2)(C)(i)(I)-(II), 4652(a)(3)(A).
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2. What are the eligibility requirements for funding under this NOFO?
The CHIPS Act imposes several eligibility requirements for funding.
First, funding is available only to “covered entities.”3 This term includes private entities or
consortia of private and public entities with a demonstrated ability to substantially finance,
construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced
packaging, production, or research and development of semiconductors, materials used to
manufacture semiconductors, or semiconductor manufacturing equipment.4 Section III.A
describes this requirement in more detail.
Second, funding is available to covered entities “to incentivize investment in facilities and
equipment in the United States” for the production of materials used to manufacture
semiconductors or semiconductor manufacturing equipment.5 An applicant must demonstrate
how the CHIPS Incentives requested will incentivize the applicant to make investments in
facilities and equipment in the United States that would not occur in the absence of the CHIPS
Incentives.
Third, funding must be for the construction, expansion, or modernization of facilities of the kind
described in Section I.B.1.6 For the purposes of this NOFO, construction means the construction
of a new facility. Expansion or modernization includes, for example, significantly enlarging an
existing facility, increasing the capacity of an existing facility via a material capital investment,
such as by adding a new production line, and upgrading an existing facility, such as converting a
facility from another use. Both expansions and modernizations will be evaluated on the
materiality of the investment relative to existing production. Projects that involve relocating a
material amount of equipment, facilities, or production from one facility in the United States to
another facility, new or expanded, are disfavored. Such projects will be deemed nonresponsive to
this NOFO absent a compelling economic or national security justification.7
Fourth, the CHIPS Act specifies that the covered entity must have a documented interest in
constructing, expanding, or modernizing an eligible facility.8 With respect to such construction,
expansion, or modernization, the CHIPS Act requires that the covered entity shall:
• Have been offered a covered incentive from a state or local jurisdiction (state or local
incentive) where the project is located, for the purposes of attracting the construction,
expansion, or modernization of the facility9
3 See 15 U.S.C. § 4652(a)(1).
4 See 15 U.S.C. § 4651(2).
5 See 15 U.S.C. § 4652(a)(1).
6 See 15 U.S.C. § 4652(a)(4)(A).
7 15 U.S.C. § 4652(a)(2)(C)(iv).
8 15 U.S.C. § 4652(a)(2)(B)(i).
9 15 U.S.C. § 4652(a)(2)(B)(ii)(I); 15 U.S.C. § 4651(3)(A).
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• Make commitments to worker and community investment, including through training and
education benefits paid by the covered entity and programs to expand employment
opportunities for economically disadvantaged individuals10
• Secure commitments from regional educational and training entities and institutions of
higher education to provide workforce training, including programming for training and
job placement of economically disadvantaged individuals11
• Have an “executable plan,” i.e., a plan reasonably capable of successful implementation,
to sustain the facility without additional funding from the CHIPS Incentives Program12
• Have documented its workforce needs and produced a strategy to meet such workforce
needs as well as the aforementioned commitments to worker and community
investment13
• Have determined the types of semiconductor technology it will produce at the proposed
facility, and the customers, or categories of customers, to whom the items will be sold,14
and
• Have developed an “executable plan” to identify and mitigate relevant semiconductor
supply chain security risks.15
The Department has designed this NOFO, including the application requirements and review
process, to ensure that these statutory requirements will be met for projects receiving CHIPS
Incentives.
3. What constitutes a project for purposes of an application?
For the purposes of an application, a “project” is a set of capital expenditures for the
construction, expansion, or modernization of a facility. A project also includes any related
workforce development or operating expense costs for the facility that the applicant proposes to
cover with CHIPS Incentives funds.
4. May applicants apply for funding under this NOFO as part of a consortium,
and if so, how?
Yes, applicants may apply for funding under this NOFO as part of a consortium. The Department
will award funding on a per-project basis to consortium members proposing to construct, expand,
or modernize a facility eligible under this NOFO.
The Department expects the entity submitting the application to be the for-profit entity within the
consortium that will own and/or operate the project facility. These applicants must also submit a
consortium narrative detailing the other members of the consortium and the overall strategic
vision of the consortium, among other relevant information.
10 15 U.S.C. § 4652(a)(2)(B)(ii)(II)(aa)-(bb).
11 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
12 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
13 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).
14 15 U.S.C. § 4652(a)(2)(B)(ii)(V).
15 15 U.S.C. § 4652(a)(2)(B)(iii).
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Under this NOFO, consortia do not need to have an umbrella organization or other formal legal
structure. Consortium members must, however, actively collaborate and align on the content of
each application submitted as part of the consortium. In evaluating projects submitted as part of a
consortium, the Department will consider the extent to which the consortium’s strategic vision
advances economic and national security, and the extent to which a given project is necessary for
achieving that vision. Thus, the Department strongly encourages consortia to be selective in
choosing projects.
5. How can CHIPS Incentives funds be used?
Funds made available under the CHIPS Incentives Program may be spent only on eligible uses,
which include the costs to:
• finance the construction, expansion, or modernization of a facility, or equipment for that
facility
• support site development and modernization for a facility
• support workforce development for a facility
• pay reasonable operating expenses for a facility, as determined by the Department.16
Not all of the applicant’s activities within a project may be eligible to receive program funds.
However, as described in Sections IV.G.3 and IV.H.4, the applicant must clearly describe any
activities within its proposed project that may be eligible uses for CHIPS Incentives.
Certain purposes are ineligible uses for CHIPS Incentives. See Section IV.I for more details.
6. How does the application process work?
The application process includes two primary phases. In the first phase, applicants will be asked
to submit a concept plan describing how their proposed project addresses core program priorities.
The Department will then invite the most promising applicants to the second phase, where they
will have the opportunity to submit a full application. The Department will communicate full
application submission dates to those applicants selected to advance, and may work with
applicants selected to advance as they shape their concept paper into a full application.
Applicants that advance in the process will be subject to due diligence prior to award. For more
information on the application process, see Section V.D.
If an applicant is applying as part of a consortium: Each member of a consortium that seeks
CHIPS Incentives for a project to construct, expand, or modernize a facility eligible for funding
under this NOFO must submit a separate concept plan and, if invited to the second phase, a
separate full application. Each project will be evaluated on its own merits. Consortium applicants
will be required to provide details about their consortium in a separate consortium narrative. In
evaluating an individual project proposed as part of a consortium, the Department will consider
16 See 15 U.S.C. § 4652(a)(4).
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the strength of the consortium’s overall strategic vision and the extent to which an individual
project is necessary to advance that vision. For more information, see Sections V.C. and V.D.
C. Program Priorities
The CHIPS Incentives Program seeks to further priorities relating to economic and national
security, workforce, and other matters. This section provides information about the program’s
priorities. Applicants should develop their applications with these priorities in mind, as they
relate to various requirements and evaluative criteria that will form the basis for the
Department’s application review process. Applications that do not meet program priorities will
not receive funding. The Department will not fund applications that lack sufficient scale to
meaningfully contribute to the objectives outlined in this NOFO. The Department expects
projects with capital investments below $20 million are unlikely to meet this standard. If a sub-
$20 million project does meet this standard, the Department generally expects other
stakeholders—including chipmakers, larger suppliers, and state and local entities— make the
project viable without CHIPS funding.
1. Economic and National Security Objectives
Advancing U.S. economic and national security is the principal objective of the CHIPS
Incentives Program. With respect to economic security, this NOFO contains a particular focus on
incentivizing the development of vibrant, sustainable semiconductor clusters. These clusters are
critical to creating a robust semiconductor ecosystem in the United States.
In addition, the Department seeks to invest in operationally secure projects employing
appropriate cybersecurity practices, as well as implementing plans to promote supply chain
security and risk management. Projects must be protected from internal and external risks
ranging from insider threats to disaster recovery and ensure their supply chain is resilient to
disruption. Moreover, projects should generally be capable of continued operations for a period
of time without access to non-U.S. facilities and personnel.
a. Economic Security Objectives
The Department has laid out three objectives for its investments in semiconductor materials and
manufacturing equipment facilities: (1) strengthening supply chain resilience, (2) advancing U.S.
technology leadership in semiconductor materials and manufacturing equipment, and (3)
supporting vibrant U.S. fab clusters.
Through this amended NOFO, the Department is particularly focused on the third goal:
supporting vibrant U.S. fab clusters. The Department seeks applications for semiconductor
material and equipment facilities that advance clusters by closing critical gaps in the U.S.
supplier landscape, for example by reducing the burdens associated with transporting critical
supply chain inputs.
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With respect to strengthening supply chain resilience, the Department seeks projects that address
chokepoint risks flowing from geographic concentration and reduce the risks of production
disruptions due to chronic shortages of critical supply chain inputs.
With respect to advancing U.S. technology leadership, the Department seeks projects that
advance U.S. technology leadership by reinforcing existing supply chain strengths and/or
developing new and innovative capabilities in the United States. The Department encourages
major U.S. semiconductor manufacturing equipment and materials suppliers to increase their
footprints in the United States, and aims to attract non-U.S. suppliers of the world’s most
advanced semiconductor manufacturing equipment, materials, and subsystems to establish large-
scale footprints in the United States.
Ultimately, the Department recognizes that all three objectives are self-reinforcing: supporting
vibrant U.S. fab clusters, for example, can generate efficiencies and innovation that end up
strengthening supply chain resilience and/or technology leadership. The Department welcomes
projects that support one or more of these objectives.
b. National Security Objectives
As foundational components to U.S. defense and critical infrastructure systems, semiconductors
are vital to U.S. national security. The government organizations and contractors that fulfill
national security missions require stable, long-term onshore access to semiconductors, which in
turn requires a robust, secure domestic semiconductor supply chain. As relevant, CPO
encourages applicants to identify the national security programs and platforms the project
supports, any customers in the defense industrial base, and any government points-of-contact
who can validate that the project will advance national security.
The Department also acknowledges that the risk of malicious disruptions to semiconductors and
their supply chains has risen in concert with increased chip complexity, process separation, and
outsourcing. The evolving threat landscape, coupled with today’s digitized world, provides a
large attack surface for adversaries to steal, compromise, alter, or destroy sensitive information
that is critical to economic and national security. The Department seeks applicants that have
made themselves resilient to these attacks, such as by establishing a strategy to protect
intellectual property and by assuring the security of their product quality and supply chain to
prevent tampering, counterfeiting, and other security issues. The Department will also evaluate
projects based on their ability to mitigate additional operational and cybersecurity risks,
including those posed by insider threats, external influence from foreign entities of concern,
dependence on foreign-owned or sourced inputs or equipment, and espionage.
Supply chain security is critical to ensure safe and continued production of semiconductors. The
Department seeks projects with demonstrated resilience measures through the protection of
physical infrastructure and the supplier ecosystem, and risk management strategies—such as
regular supply chain mapping—to avoid supply chain exploitation or the theft of intellectual
property.
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The Department will also consider the national security risks of the location of any upstream or
downstream steps in the semiconductor material or equipment manufacturing process.
2. Commercial Viability
Long-term commercial viability is an essential component of any successful application.
Commercially viable projects will be grounded on a sound business case providing reliable cash
flows that are sufficient to maintain continuity of operations and continued investment in the
facility.
Each applicant must describe the type of semiconductor material or equipment the proposed
project will produce, where in the semiconductor manufacturing process the technology is used,
and key semiconductor- and non-semiconductor-related end markets.17 A strong application will
present a sophisticated understanding, backed by evidence, of the demand for a project’s output
and other sources of existing and potential future supply. Each applicant must also identify the
customers, or categories of customers, for a project’s output, and strong applications will include
evidence of offtake commitments or other evidence of specific customer demand.18 The
Department encourages proposals that attract more private capital and induce larger-scale,
private domestic investments. The Department also encourages purchase commitments and
collaborations across the supply chain to clarify future demand, improve transparency and trust,
and mitigate the risk of future supply chain shortages or oversupply.
3. Financial Strength
The CHIPS Incentives Program does not provide enough funding on its own to create the
capacity needed to meet the program’s economic and national security objectives. Applicants
should structure the finances of their project in a way that maximizes private-sector contributions
and minimizes the need for government incentives. The Department may decline to award
CHIPS Incentives if the applicant has not demonstrated sufficient efforts to maximize the use of
private-sector funds. The Department will evaluate the degree to which the applicant, through its
funding request, leverages private investment, incentives provided by state and local
governments, and the Investment Tax Credit (to the extent applicable) to increase scale and
lower the need for CHIPS Incentives. The Department will also ask applicants to submit a
financial model, which will inform a comprehensive assessment of a project’s finances.
4. Project Technical Feasibility and Readiness
Timely construction and effective operation of facilities is crucial to the overall success of the
CHIPS Incentives Program. Project technical feasibility includes the ability of the applicant to
construct, equip, and operate the proposed project. To demonstrate technical feasibility,
applicants will be asked to provide a construction plan, including a construction schedule and a
list of key partners, contractors, and suppliers.
17 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(aa).
18 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(bb).
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Activities funded under this NOFO will be subject to various Federal, state, and local
environmental and permitting requirements. The Department intends to prioritize applications
that demonstrate a clear path to meeting these requirements in a timely manner.
5. Workforce Development
A strong, long-term workforce strategy is critical to achieving the economic and national security
goals of the CHIPS Act. Each applicant will therefore lay out their strategy to recruit, train, hire,
retain, and upskill a workforce consistent with Executive Order 14278: Preparing Americans for
High Paying Skilled Trade Jobs of the Future, and Executive Order 14173: Ending Illegal
Discrimination and Restoring Merit-Based Opportunity. All applicants must comply with all
applicable Federal labor and employment laws, including but not limited to Title VII of the Civil
Rights Act of 1964, the Fair Labor Standards Act, the Occupational Safety and Health Act, and
the National Labor Relations Act, which protects employees’ right to bargain collectively and
engage in concerted activities for the purpose of workers’ mutual aid or protection.
To be eligible for CHIPS funding, applicants must secure “commitments from regional
educational and training entities and institutions of higher education to provide workforce
training, including programming for training and job placement of economically disadvantaged
individuals.”19 Applicants are strongly encouraged to work with such partners to articulate their
approach to meeting their facility and construction workforce needs through training and
recruitment of American workers. For both their facility and construction workforce, applicants
must provide a workforce needs assessment; outline evidence-informed strategies for
recruitment, training, and retention; and describe their approach to ensuring job quality.
The Department strongly encourages the use of project labor agreements in connection with
construction projects when those agreements are practicable and cost effective.
All laborers and mechanics employed by contractors or subcontractors on a construction project
that receives financial assistance under the CHIPS Incentives Program shall be paid wages at
rates not less than those prevailing on similar construction in the locality as determined by the
Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, commonly
referred to as the “Davis-Bacon Act.”
II. Federal Award Information
A. Funding Instrument
CHIPS Incentives will be provided through this NOFO, as appropriate, in a form consistent with
the CHIPS Act. The final composition and structure of any financial assistance awards made
under this program will be determined during the review and selection process.
19 See 15 U.S.C. § 4652(a)(2)(B)(ii)(III).
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B. Funding Availability
The amounts awarded under this NOFO will depend on program priorities and the quality of
applications received.
C. Award Amount
The total amount of a CHIPS award will vary by project.
D. Period of Performance
The specific period of performance will vary depending on the size and complexity of the project
and the specific activities funded and will be negotiated with the applicant and reflected in the
award documents. The conclusion of an award’s period of performance does not signify the end
of a recipient’s obligations related to a CHIPS Incentives Award.
III. Eligibility Information
A. Eligible Applicants
1. Covered Entity Requirement
An applicant must be a “covered entity” to receive CHIPS Incentives. For purposes of this
NOFO, a “covered entity” means a nonprofit entity; a private-sector entity; a consortium of
private-sector entities; or a consortium of nonprofit, public, and private-sector entities with a
demonstrated ability to substantially finance, construct, expand, or modernize a facility relating
to the fabrication, assembly, testing, advanced packaging, production, or research and
development of semiconductors, materials used to manufacture semiconductors, or
semiconductor manufacturing equipment.
With respect to consortium applications, the Department will award funds on a per-project basis
to each private-sector, domestic legal entity responsible for constructing, expanding, or
modernizing a facility eligible for CHIPS funding under this NOFO.20 A recipient will assume
legal and financial responsibility for the CHIPS Incentives received, including any funds
provided to subrecipients and contractors.
The Department may require that the parent or affiliated entities of the recipient provide
commitments or guarantees for the benefit of the Federal government or to advance program
priorities.
20 Multiple recipients or a nondomestic recipient may be permitted, at the sole discretion of the Department, in
exceptional cases, such as in cases of applications involving more than one member of an affiliated group, i.e. a
corporate parent and one or more of its subsidiaries. Such exceptions will only be granted if consistent with
applicable law and where providing for multiple recipients would further program or project objectives and would
not undermine the ability of the Department to evaluate an application and monitor and enforce compliance with the
terms of any resulting CHIPS Incentives Award. Multiple recipients will not be permitted where the recipients are
not part of the same affiliated group. After the submission of a concept plan, a submitter may seek guidance on
whether a multiple recipient or nondomestic recipient option may be available for its potential application.
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2. Foreign Entities of Concern and Foreign Capital
Foreign entities of concern21 are not eligible to receive CHIPS Incentives.22 In addition, the
Department will review applications for involvement of foreign entities of concern and will not
approve any applications where a foreign entity of concern—through control,23 access to
information, or other mechanisms—poses an undue risk to a project or U.S. national security
interests. Applicants are required to provide information via the SF-328 form at the time of full
application to enable an initial assessment of these issues. Additional information, beyond the
scope of the SF-328 form, may be required in due diligence, to further identify and, if necessary,
mitigate potential risks to national security.
CHIPS Incentives Awards will also involve requirements to enable identification and mitigation
of national security risks posed by involvement of foreign entities of concern that may arise after
an application is approved.
3. Cost Sharing or Matching
Cost sharing or matching funds, as governed by 2 CFR § 200.306, are not legally required for
this NOFO. Each applicant must be able to demonstrate that they have sufficient resources
available to complete the proposed project, when combined with the requested CHIPS
Incentives.
IV. Application and Submission Information
A. How to Access an Application Package
Application forms and instructions are available on the CHIPS Incentives Program application
portal. FAQs, guides and templates are available at https://www.chips.gov.
B. Submission Dates and Times
This amendment re-opens and extends the period of acceptance of applications, which was
originally open from December 1, 2023, through February 1, 2024, so that concept plans will
now be accepted through November 1, 2026.
For applicants that are invited to advance to the full application phase, the CHIPS Program
Office will communicate full application submission dates to applicants individually upon
notifying them of their advancement.
21 See 15 C.F.R. Part 231
22 15 U.S.C. § 4657.
23 The term “control” for this purpose is defined as any direct or indirect investment in a corporate entity that
provides the investor with the means to influence important matters affecting the project. The term “means to
influence important matters” includes membership or observer rights on, or the right to nominate an individual to a
position on, the board of directors or equivalent governing body of the corporate entity; any involvement, other than
through voting of shares, in substantive decision-making by the corporate entity; and consultation rights with respect
to technology licensing to third parties.
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The Department may amend this NOFO at any time. It may also close the funding opportunity
with at least 60 days’ notice.
C. Confidential Information
CPO recognizes the importance of protecting confidential business information from public
disclosure. CPO and the Department will follow applicable laws, including, for example, the
CHIPS Act, the Trade Secrets Act, and the Freedom of Information Act (FOIA), to protect such
information.
1. Statutes Applicable to Confidential Business Information
Subject to certain exceptions, Section 4652 of the CHIPS Act provides that “any information
derived from records or necessary information disclosed by a covered entity to the Secretary
under this section” is exempt from disclosure under FOIA and “shall not be made public.”24
All Federal employees are also bound by the Trade Secrets Act, which makes Federal employees
criminally liable for the unauthorized disclosure of “information [that] concerns or relates to the
trade secrets, processes, operations, style of work, or apparatus, or to the identity, confidential
statistical data, amount or source of any income, profits, losses, or expenditures of any person,
firm, partnership, corporation, or association.” 25 Violations of the Trade Secrets Act may result
in the loss of employment, fines, or imprisonment.
Finally, FOIA requires Federal agencies, including CPO and the Department, to disclose agency
records requested by a member of the public, including information received from outside
parties, unless FOIA specifically exempts the information from disclosure. Information that
“shall not be made public” under Section 4652 of the CHIPS Act “shall be exempt from
disclosure under section 552(b)(3) of title 5,”26 making it exempt from disclosure under FOIA.27
In addition, FOIA exempts from disclosure information submitted by an applicant that
constitutes trade secrets or is privileged or confidential commercial or financial information.28
The Department will apply these exemptions, in accordance with the law and the Department’s
FOIA regulations,29 to FOIA requests.
24 15 U.S.C. § 4652(a)(6)(G)(i). The exceptions are for information 1) relevant to any administrative or judicial
action or proceeding, 2) that a covered entity has consented to be disclosed to third parties, or 3) necessary to fulfill
the congressional notification requirement specified under Section 4652(a)(6)(H). “Covered entity” is defined at 15
U.S.C. § 4651(2). The Department interprets “information disclosed by a covered entity to the Secretary under this
section” to include information disclosed by a covered entity as part of the application process under this NOFO.
25 18 U.S.C. § 1905.
26 15 U.S.C. § 4652(a)(6)(G)(i).
27 See 5 U.S.C. § 552(b)(3).
28 5 U.S.C. § 552(b)(4).
29 See 15 C.F.R. Part 4.
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2. Instructions for Marking Confidential Business Information
To assist the Department in protecting trade secrets or privileged or confidential commercial or
financial information, applicants should follow these guidelines in submitting information via a
concept plan or full application.
First, the following legend should appear on the first page of any document containing trade
secrets or privileged or confidential commercial or financial information:
This document contains trade secrets or commercial or financial information that is
privileged or confidential and is exempt from public disclosure. Such information shall
be used or disclosed only in accordance with the CHIPS Incentives Program NOFO or as
otherwise authorized or required by law. The information subject to these restrictions is
contained on all pages of the document except for pages [insert page number or other
identification of pages that contain no restricted information.]
(End of Legend)
Second, the following legend should appear on each page of the document that contains
information the applicant seeks to designate as trade secrets or privileged or confidential
commercial or financial information:
Use or disclosure of information contained on this sheet is subject to the restriction on the
title page of this document.
(End of Legend)
The use of any other legend may constitute grounds for removing the application from further
consideration without assuming any liability for inadvertent disclosure. Each applicant must also
use good faith when designating information as trade secrets or commercial or financial
information that is privileged or confidential.
3. Use of Information
Any person or entity submitting information under this NOFO acknowledges and understands
that information and data contained in or submitted in connection with statements of interest30,
concept plans, full applications, or due diligence under this NOFO (together, “applicant
information and data”) may be accessed and used by Federal employees and their contractors for
the purposes of this NOFO and carrying out the government’s responsibilities in connection with
the CHIPS Incentives Program, or as otherwise required by law. By submitting applicant
information and data, the applicant, potential applicant, or an entity submitting a concept plan
consents to the disclosure of such applicant information and data to consultants and contractors
for these purposes, consistent with Federal law.
30 Applicants that have not already submitted a statement of interest to the Department are not required to do so
before submitting a concept plan under this NOFO, but may still do so if desired.
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The Department may publish information concerning the award of incentives at stages through
the review, selection, and award process. The Department may inform and, to the extent required
by law, seek consent from applicants of any such disclosures. In addition, as will be set forth in
the terms and conditions of a CHIPS Incentives Award, successful applicants will be expected to
support program and project reviews, audits, and program evaluation activities, including by
submitting required financial and performance information and data in an accurate and timely
manner, making available documents and other records related to the award project upon request,
and by cooperating with Department and external program evaluators, including, for non-
program evaluation activities, the Office of the Inspector General. Certain post-award progress
reporting may also be made public.
The Department may also publish aggregated information from statements of interest, concept
plans, and applications.
D. False Statements
It is a crime to knowingly make false statements to a Federal agency. Misrepresentation of
material facts may be the basis for denial of an application. Penalties upon conviction may
include fine and imprisonment. For details, please refer to 18 U.S.C. § 1001.
E. Application Requirements
Application forms and instructions are available on the CHIPS Incentives Program application
portal. FAQs, guides, and templates are available at https://www.chips.gov. Applicants will
provide information to the CHIPS Incentives Program application portal via web forms,
populating required templates, and uploading narrative documents and other required or
supporting attachments. The following sections describe the information that will be required as
part of the submissions for concept plans and full applications.
All application materials must be submitted electronically via the CHIPS Incentives Program
application portal. In addition to the requirements set forth below, during the application review
process the Department may request additional records and information necessary for fulfilling
the purposes of this NOFO.
F. Requirements for Attachments Submitted through the CHIPS Incentives Program
Application Portal
Requirements for attachments submitted through the CHIPS Incentives Program Application
Portal can be found at chips.gov.
G. Content and Form of Concept Plan
The concept plan allows the Department to evaluate proposed projects and invite those most
likely to receive an award to advance to the full application phase.
Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or
modernize a facility eligible for funding under this NOFO must submit an individual concept
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plan. Consortium applicants will be required to provide details about their consortium in a
separate consortium narrative.
Concept plans must be submitted through https://applications.chips.gov.
The concept plan includes information input via web forms on the CHIPS Incentives Program
application portal and the following information:
1. Cover Page
The cover page will be input directly via a web form on the CHIPS Incentives Program
application portal.
2. Consortium Narrative (if applicable)
Consortium members must also upload a separate consortium narrative of no more than 5 pages.
The consortium narrative must include the following information, and each member is
responsible for ensuring consistency across all related applications:
• The individual entities that are members or proposed members of the consortium and the
roles of each entity31
• A narrative description of the consortium’s overall strategic vision; how that vision aligns
with the Department’s economic and national security objectives; and the relevance of
each proposed project to that vision
o Include an explanation of why the proposed projects are necessary to advance the
consortium’s vision, and why CHIPS funding is necessary to incentivize the
relevant investment
• The structure of the consortium, including how members intend to coordinate and/or
collaborate with one another
3. Concept Plan Details
Each applicant must submit a project plan of no more than 15 pages that describes the project for
which CHIPS Incentives funds are being requested. Attachments such as the Project Sources and
Uses of Funds spreadsheet are not included in this page limit.
The project plan must contain the following information:
• Description of Project: A description of the construction, expansion, or modernization
activities proposed, including a description of the facility location and existing or
required infrastructure. This description should include the products that the facility
produces or will produce and their end market application, along with information on the
scale, size, and capacity of production.
31 The Department will not require consortia to be fully formed at the concept plan phase. Consortium applicants
should simply list the members or proposed members that are part of the consortium’s current plan. If a consortium
wishes to add additional member(s) after they have submitted their concept plan, they should indicate any additions
in the full application consortium narrative.
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• Applicant Profile: A brief description of the applicant, including identification of its
headquarters, primary officers, ownership (publicly traded or privately held, including
main shareholders), main business lines, and main countries of operation. For applicants
that are a subsidiary of another entity, this information should be provided for the
ultimate corporate parent as well.
• CHIPS Incentives Justification: A summary narrative explaining how the CHIPS
Incentives requested will incentivize the applicant to make investments in the facility and
equipment in the United States that would not occur in the absence of the incentives. If
relevant, include other ways that the requested incentives would change the nature, scale,
or speed of the investment.
• Economic and National Security: A narrative description of how the proposed project
will further the economic and national security objectives of the United States, as
described in Section I.C.1. Applicants should describe, in particular, how the proposed
project will help strengthen supply chain resilience, advance U.S. technology leadership,
and/or support vibrant U.S. fab clusters.
• Commercial Viability: A narrative description of the demand drivers for the output of the
facility with as much specificity as is available on end markets and customer demand.
Evidence of customer demand could include key off-take agreements, letters of reference
or intent, or a list of top customers for each major product and associated volumes (any
such items should be included in an appendix). The narrative should also explain how the
project will reach sufficient scale to be commercially viable over the long term.
• Project Feasibility and Readiness: A narrative description explaining why the proposed
project is technically feasible, including a notional construction schedule; an explanation
of the experience and qualifications of key management personnel, including experience
with projects of similar size and scope; a list of any comparable facilities previously
commissioned by the applicant or its parent companies; and any evidence that the
applicant has the ability to effectively manage the environmental review process.
• Availability of Funds: Provide the information listed below about capital investment and
capital sources via the Project Sources and Uses of Funds spreadsheet template available
on the CHIPS Incentives Program application portal. In addition, provide a narrative that
details specific, credible evidence of the availability of the listed sources of funds. That
evidence could include, for example, company financials demonstrating the availability
of cash; commitment letters; or other approaches to accessing the required funding.
o Capital Investment: The costs required to complete the construction, expansion, or
modernization of the project and initiate operation, broken down by category such
as land, construction (e.g., labor and material), equipment, infrastructure
improvements (e.g., utility plants, access to infrastructure, or wastewater
treatment plants), and administrative expenses directly attributable to the
construction, expansion, or modernization (e.g., legal, engineering, and permitting
fees).
o Project Capital Sources: Total project capital sources should be greater than the
capital investment costs described above (in the full application, the Department
will expect total project capital sources to equal the sum of capital investment,
operating losses and other cash outflows until cash flow breakeven, and
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workforce development costs), and should include, for example, CHIPS
Incentives; equity from the applicant, its parent, and any third parties; debt
financing from the applicant or corporate parents; state and local government
incentives; the Investment Tax Credit; and any other sources of funds, such as
customer pre-payments.
H. Content and Form of Full Application Submission
This section provides instructions and details for submission of full applications to the CHIPS
Incentives Program. Based on the review of concept plans, the Department will invite selected
applicants to submit a full application. Applicants not invited to submit a full application will be
notified that they have been eliminated from consideration in this competition.
The full application includes a series of sections, each described below. Page limits are provided
where applicable. Sections should be accompanied by relevant attachments that substantiate
information in the narrative section, which do not count toward the page limit. All application
materials must be submitted through the CHIPS Incentives Program application portal.
Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or
modernize a facility eligible for funding under this NOFO must submit a separate application.
Consortium applicants will be required to provide details about their consortium in a separate
consortium narrative.
Applicants should make efforts to complete the process of registering for the System for Award
Management (SAM.gov), including obtaining a Unique Entity Identifier (UEI), prior to
submitting a full application. For consortium applicants, SAM.gov registrations are required for
all members seeking CHIPS Incentives for the construction, expansion, or modernization of a
facility eligible for funding under this NOFO.
Applicants are strongly encouraged to begin the process of registering for SAM.gov as early as
possible. While this process ordinarily takes between three days and two weeks, in some
circumstances it can take six or more months to complete due to information verification
requirements. The Department is unable to issue a CHIPS Incentives Award to an entity that
lacks an active SAM.gov registration.
A summary table of the application structure is provided below:
1. Cover Page
2. Consortium Narrative (if applicable)
3. Covered Incentive
4. Description of Project
5. Applicant Profile
6. Alignment with Economic and National Security Objectives
7. Commercial Strategy
8. Financial Information
9. Project Technical Feasibility
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10. Workforce and Community Investments
11. Standard Forms
1. Cover Page
The cover page will be input directly via a web form on the CHIPS Incentives Program
application portal.
2. Consortium Narrative (if applicable)
Consortium members must also upload a separate consortium narrative of no more than 8 pages.
The consortium narrative must include the following information, and each member is
responsible for ensuring consistency across all related applications. If there have been no
updates, consortium members may simply resubmit the narrative they submitted as part of the
concept plan:
• The individual entities that are members of the consortium and the roles of each entity
• A narrative description of the consortium’s overall strategic vision; how that vision aligns
with the Department’s economic and national security objectives; and the relevance of
each proposed project to that vision
o Include an explanation of why each proposed project within the consortium is
necessary to advance the consortium’s vision, and why CHIPS funding is
necessary to incentivize the relevant investment
• The structure of the consortium, including how members intend to coordinate and/or
collaborate with one another
• If applicable, any documentation and evidence of the planned operating model, such as
the governance structure, decision-making authority/rights, contractual obligations,
financial obligations, roles and responsibilities, and any memoranda of understanding
Letters of commitment must be attached from all entities responsible for executing portions of
the proposed scope of work. For consortium applicants, this includes letters from other
applicants in the consortium confirming their participation in the consortium.
3. Covered Incentive
Each applicant must provide a letter from a state or local government entity offering a qualifying
covered incentive, indicating the estimated size and nature of the incentive.32 For consortium
applicants, the covered incentive requirement may be satisfied by one offer letter that names all
facilities in the consortium applying for CHIPS Incentives funding.
32 See 15 U.S.C. § 4652(a)(2)(B)(ii)(I). The offer of a covered incentive may be contingent; if so, any contingencies
need to clearly be specified in the letter. Further, prior to receiving a CHIPS Incentives Award, the applicant may be
required to provide additional information demonstrating to the Department’s satisfaction that the covered incentive
has been or will be received.
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4. Description of Project
The applicant must submit a detailed description of the project proposed in the application. The
description should be no longer than 3 pages and contain the following information:
• Description of Project: A description of the construction, expansion, or modernization
activities proposed, including a description of the facility location and existing or
required infrastructure. This description should include the products that the facility
produces or will produce and the end market application and top customers for those
products, along with information on the scale, size, and capacity of production.
• Project Timeline: A detailed description of the overall timeline and key milestones
inclusive for the project, for both the capital expenditure components of the project and
the workforce development and/or operational cost components of the project.
5. Applicant Profile
Provide the following information for the applicant. If the applicant is a subsidiary, this
information should be provided for the applicant, its ultimate corporate parent, and any key
intermediate entities:
• Descriptive Information About the Applicant: Information related to the applicant’s
businesses, including but not limited to company name, corporate form, jurisdiction of
formation, description of key business activities, year established, headquarters
country/state/city, countries/U.S. states of operation, and number of employees. In
addition, the application should include a brief description of the applicant’s and (if
applicable) its parent company’s business profile, key products manufactured, end
markets, and competitors, as well as any existing or planned business operations in
foreign countries of concern.
• Ownership, Legal Entity, and Organizational Structure: The applicant should provide a
formal legal entity and organizational structure detailing all parent companies,
subsidiaries, and affiliates and other relevant entities, including associated ownership of
those entities, up to the top shareholder(s) and the ultimate corporate parent (if
applicable). In addition, the applicant should outline recent and upcoming organizational
changes, including mergers and acquisitions and any recent or proposed changes to
corporate structure. Applicants should provide this information in the form of detailed
charts and accompanying narrative explaining the legal entity and organizational
structure.
• Past Project History: A summary of any facilities comparable to the proposed project
facility commissioned by the applicant or its parent companies in the last five years,
including details on type of production and output, years in operation, location, project
cost, and summary financials.
• Covered Entity Status: An explanation of how the applicant qualifies as a “covered
entity,” including a demonstration of the applicant’s ability to substantially finance,
construct, expand, or modernize the facility proposed.33 Such a showing could include,
33 See 15 U.S.C. § 4651(2).
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for example, evidence of prior experience successfully managing and completing
comparable projects, expertise of a scientific and technical nature that is applicable to the
proposed project, or sufficient committed financing for the project outside of CHIPS
Incentive Request.
• Company Financials: If available, audited consolidated financial statements at fiscal year-
end for each of the last two years, and interim financial statements for the current fiscal
year.34
• Equity Capital Structure: Information on major shareholders, number of shares
outstanding, share price history, and market valuation (or estimated private valuation) at
year-end for the last two years, if available.
• Outstanding Debt: Schedule listing outstanding debt, lines of credit, other material
indebtedness, guarantees, or (material) off-balance sheet liabilities, along with the
expected cost for those liabilities.
6. Alignment with Economic and National Security Objectives
Describe how the project meets economic and national security objectives in no more than 10
pages. Consistent with the program priorities set forth in Section I.C.1, this should include how
the project will (a) support vibrant U.S. clusters and/or the broader U.S. ecosystem, (b)
strengthen supply chain resilience, and/or (c) advance U.S. technology leadership.
In addition, applicants should specifically discuss the following aspects of their project:
• Cybersecurity. Applicants should review the NIST Framework for Improving Critical
Infrastructure Cybersecurity35 and describe their cybersecurity practices. Applicants
should cite applicable laws, regulations, standards, NIST guidance or Cybersecurity and
Infrastructure Security Agency (CISA) recommendations and cybersecurity performance
goals.36 The applicant should provide a brief assessment of any major risks identified,
including mitigation strategies (e.g., access control, network segmentation, contingency
planning, disaster recovery plans, redundant capacity, cyber insurance, employee
training, and continuous monitoring).
Applicants should also detail operational security measures and efforts to continuously
assess and protect data.
• Supply Chain Resilience and Risk Management. An application must demonstrate,
with respect to the project proposed, that the applicant has an executable plan to identify
and mitigate relevant supply chain security risks, such as risks associated with access,
availability, confidentiality, integrity, and a lack of geographic diversification in its
supply chain.37 This plan should provide information addressing its organizational
34 If an applicant does not have access to audited consolidated financial statements, they must explain why not.
35 NIST, U.S. Dep’t of Commerce, Version 1.1, Framework for Improving Critical Infrastructure Cybersecurity
(2018).
36 Cross-Sector Cybersecurity Performance Goals.
37 See 15 U.S.C. § 4652(a)(2)(B)(iii).
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approach to managing supply chain risk, resilience, and security, and how this will
support the proposed project. The applicant should demonstrate its ability to continue
operating in the United States without access to non-U.S. facilities and personnel. The
applicant should also identify key suppliers; demonstrate access to power, water, air
strips, and material transportation channels; and list its risk management strategies to
minimize and mitigate adversarial attempts to degrade, exploit, or compromise the supply
chain, including the introduction of counterfeit and/or malicious items into the supply
chain.
The applicant should also identify its corporate approach to managing supply chain risk,
resilience, and security, including any senior executive leaders responsible for managing
supply chain risk. The applicant should also include information about its relationship
with suppliers (such as long-term contracts and/or mechanisms for information-sharing)
to prevent and promote agile response to unexpected situations.
• Foreign Control. Each applicant should identify any foreign entity38 that exercises
control over the applicant or a proposed project or has access to confidential information
about the proposed project. The applicant should also identify any potential transactions
occurring during the application process that could result in such control by a foreign
entity or sharing of confidential information with a foreign entity.
7. Commercial Strategy
An application must demonstrate that the applicant has an executable plan to sustain the
proposed facility without additional CHIPS Incentives.39 A sound commercial strategy is a
component of having an executable plan. Each applicant must describe its commercial strategy,
including information on customer and end-market demand, volume growth, pricing dynamics,
competitive positioning, and supply dynamics, for the proposed project. This strategy must
identify the type of semiconductor materials or equipment the applicant will produce at the
project facility and the customers, or categories of customers, for those materials or equipment.40
In no more than 3 pages, this section should discuss the following topics:
• End-Market Demand: Information on end market industries and projected growth.
Specify what percentage of the project’s output will serve the semiconductor industry,
and explicitly reference the top customers for each major product and associated volumes
(to the extent known). In an appendix, provide any concrete evidence of customer
demand, such as off-take agreements, letters of reference or intent, or other pre-purchase
commitments.
• Market Position and Competitor Landscape: Include an assessment of key competitors,
market dynamics (including the applicant’s relative place in the market), supply and
38 See 15 U.S.C. § 4651(6).
39 See 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
40 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V).
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demand dynamics over time, and pricing trends and exposure to pricing pressure during
downturns.
8. Financial Information
A sound financial plan is also a component of having an executable plan to sustain the proposed
facility without additional CHIPS Incentives.41 Each applicant must provide a financial plan in
no more than 5 pages (excluding attachments and appendices). The plan should include sources
and uses of funds, cash flow projections, key return and debt service metrics, and the amount of
the CHIPS Incentives request. The applicant should also provide supporting evidence for any key
assumptions.
• Project Sources and Uses of Funds: Provide the information listed below about project
costs and capital sources via a descriptive narrative and by filling out and uploading the
Project Sources and Uses of Funds spreadsheet template available on the CHIPS
Incentives Program application portal.
o Project Costs: Project costs should include, but are not limited to:
▪ Capital Investment: Costs required to complete construction of the project
and initiate operation, broken down by category such as land,
construction, equipment, infrastructure improvements, and administrative
expenses directly attributable to the project construction.
▪ Operating Losses and Other Cash Outflows until Cash Flow Breakeven:
Estimated operating losses/cash outflows, including upgrade investments,
maintenance, interest expenses, and working capital once the project is
operationalized until cash flow breakeven.
▪ Workforce Development Costs: Spending by the applicant on workforce
development activities to support the proposed project.
o Project Capital Sources: Total project capital sources should equal the project
costs described above and should include, as applicable, any sponsor equity; debt
funding; third-party equity; state and local government incentives; the Investment
Tax Credit; CHIPS Incentives; and any other sources of funds, such as from
customers or suppliers.
• Financial Model: Applicants may submit their own financial model but have the option of
using the Full Application Example Financial Model available on CHIPS.gov. Financial
models must include a summary of the expected revenues (broken down by number of
units sold and price per unit), costs, and cash flows for the project, including key income
statement, cash flow statement, and balance sheet information. Also provide a summary
narrative and supporting evidence for key assumptions underlying these projections.
• CHIPS Incentives Request:
o Provide a narrative description for how the financial information submitted for the
project supports a conclusion that a CHIPS award will incentivize the applicant to
make investments in facilities and equipment in the United States that would not
occur in the absence of the incentives.
41 See 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).
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o Provide a description of specific efforts to date to bring other capital (debt, state
and local incentives, other private capital) into the project and how the CHIPS
Incentives request would enable and not displace those other funding sources.
9. Project Technical Feasibility
The applicant must demonstrate the technical feasibility of the proposed project. In no more than
8 pages (excluding attachments to support details), the applicant should include the following:
• A description of the product to be made and the applicant’s relevant experience and
expertise to support successful execution at the scale envisioned in the application
• A construction plan, including the location of project facilities, a detailed description of
the major engineering, construction, and site preparation activities linked to specified cost
and other milestones and performance guarantees; a construction schedule; a list of key
management personnel, partners, contractors, and suppliers; and an inventory of all
Federal, state, and local permits, licenses, and approvals required to site, construct,
implement, and operate the facility. The applicant should include one-page resumes for
(a) all key construction management personnel and (b) all key personnel of contractors
and any other entities that will play substantial roles in the construction of the project.
• An operation management plan, including a description of the managerial oversight and
governance for the operation of the project from the completion of construction through
the life of the facility. Include an organizational chart of management and other key
personnel for the facility, including contractors and any other entities that will play
substantial roles in operating the proposed project. List the experience and qualifications
of key management personnel, including experience with projects of similar size and
scope.
• A description of whether and how they intend to utilize domestically produced iron, steel,
and construction materials as part of their projects.
10. Workforce and Community Investment Plan
Applicants must demonstrate commitments to workforce recruitment, training, and community
investment consistent with 15 U.S.C. § 4652(a)(2)(B)(ii).
The workforce strategy should be consistent with Executive Order 14278: Preparing Americans
for High Paying Skilled Trade Jobs of the Future, and Executive Order 14173: Ending Illegal
Discrimination and Restoring Merit-Based Opportunity.
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11. Standard Forms
All applicants should submit standard forms as follows:
• SF-328, Certificate Pertaining to Foreign Interests
• CD-511, Certification Regarding Lobbying. Enter “2023-NIST-CHIPS-SMME-01” in the
Award Number field. Enter the title of the application, or an abbreviation of that title, in
the Project Name field
• SF-LLL, Disclosure of Lobbying Activities (if applicable)
In addition, applicants may be required to submit additional standard forms, such as the SF-424
and SF-424A/C/D, during the application review process.
I. Funding Restrictions
Funds made available under the CHIPS Incentives Program may be spent only on eligible uses.
See Section I.B.5. In addition, funds made available under the CHIPS Incentives Program may
not be used to:
• construct, modify, or improve a facility outside of the United States42
• physically relocate existing facility infrastructure to another jurisdiction in the United
States, unless the project is in the interest of the United States, as determined by the
Department43
• purchase an equity security that is listed on a national securities exchange of an award
recipient or any parent company of such recipient or to pay dividends or make other
capital distributions with respect to the common stock (or equivalent interest) of the
recipient or any parent company of such recipient44
• pay off any Federal direct or guaranteed loan or any other form of Federal debt
Project budgets may not include indirect costs. Applicants with a negotiated indirect cost rate
agreement must ensure all uses of Federal funds are charged as direct costs in the categories
listed in Section I.B.5.
The failure to mention a particular use of funds above does not imply that such use is either
allowable or unallowable. Final determinations on the allowability of particular uses of funds is
at the sole discretion of the Department.
J. Prohibition on Profit and Fees.
Recipients and subrecipients of CHIPS Incentives may not charge, as part of the project budget,
profits, fees, or other incremental charges above the actual costs incurred in executing the
award’s approved scope of work.
42 15 U.S.C. § 4562(i).
43 15 U.S.C. § 4652(a)(2)(C).
44 See CHIPS Act of 2022, Pub. L. No. 117-167, § 102(g)(1), 136 Stat. 1366, 1378-1379 (2022).
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This restriction does not impact an award recipient’s ability to earn profits by selling products
produced or manufactured at facilities supported by Federal financial assistance in the ordinary
course of business.
V. Application Review Information
There will be two primary stages of review: the concept plan and the full application.
The Department will score concept plans using a point system and use the Selection Factors in
Section V.B to advance the most promising potential applicants to the full application phase. At
the full application phase, review will be qualitative and based on (1) an assessment of projects
against the evaluation criteria laid out in Section V.C, and (2) application of the Selection
Factors in Section V.B.
A. Concept Plan Evaluation Criteria
Concept plans will be scored based on the evaluation criteria described below. Subject to the
Selection Factors listed in Section V.B, the Department will invite a subset of concept plan
submissions to advance to the full application phase.
• The extent to which a project advances U.S. economic and national security by
supporting vibrant U.S. fab clusters, strengthening supply chain resilience, and/or
advancing U.S. technology leadership
o If the project is proposed as part of a consortium, the Department will evaluate
the strength of the consortium’s strategic vision and the extent to which the
project is necessary to achieve that vision.
o Given the scale of projects eligible under this funding opportunity and the
importance of chips clusters for U.S. competitiveness, the Department expects
that most projects will justify their request for funding by outlining their role in
supporting self-sustaining U.S. fab clusters. The Department also welcomes
project proposals that meaningfully contribute to strengthening supply chain
resilience and/or advancing U.S. technology leadership, as well as projects that
advance more than one of these objectives.
• A project’s long-term commercial viability, including the extent to which the concept
plan demonstrates robust customer demand for the proposed project output
• The strength and plausibility of the applicant’s justification for why the CHIPS
Incentives requested will incentivize the applicant to make investments in facilities and
equipment in the United States that would not occur in the absence of the incentives
• The likelihood that the applicant will successfully execute the proposed projects,
including an assessment of the experiences of the applicant and the extent to which the
applicant has a viable plan to complete the required construction and manage the
environmental review process
• The availability and credibility of non-CHIPS funding sources for the project.
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B. Selection Factors
The selection factors the Department will use to (1) advance the most promising applicants to the
full application phase and (2) select full applications for funding, are:
• The mix and breadth of strategic objectives being advanced at the project and/or portfolio
level
• The likelihood that the proposed project would proceed in substantially similar form
without CHIPS funding
• The extent to which the project’s risk profile impacts the program’s overall portfolio risk
profile
• The extent to which the project meaningfully contributes to the development or
sustainability of a U.S. fab cluster
• The extent to which the project duplicates other projects funded by the Department or
other Federal agencies
• Whether the applicant, or a corporate affiliate of the applicant, has previously received
financial assistance in this program
• The extent to which awards in the program contribute to a diversified portfolio, to include
awards based on geographic location of facilities receiving support
• For consortium applicants, whether the consortium maximizes inclusion of and resources
from relevant stakeholders
C. Full Application Evaluation Criteria
Full applications will be evaluated holistically and qualitatively based on the evaluation criteria
described below. The Department will use these criteria, in addition to the Selection Factors
listed in Section V.B, to determine whether to recommend an application for award.
• The extent to which an application advances economic and national security by
supporting vibrant U.S. clusters, strengthening supply chain resilience, and/or advancing
U.S. technology leadership
• The extent to which an application addresses national security considerations, including
cybersecurity, operational security, and supply chain resilience
• The extent to which there is a reasonable market environment and demand for the
project’s output, and the extent to which the project serves the semiconductor industry
• The extent of a project’s financial strength, including the comprehensiveness and
reasonableness of the projected capital expenditures; the likelihood that the project will
generate sustainable earnings; and the degree to which the applicant has committed
private investment and/or attracted third-party investment
• The degree to which the request for CHIPS Incentives is necessary to make the project
viable in the United States
• The degree to which a project is feasible to execute, including the extent to which the
applicant and key partners have the necessary experience to complete and operate the
project; the extent to which the applicant has a viable construction plan; and the
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likelihood and extent to which the project could face regulatory delays, such as in a
permitting or environmental review process
• The completeness, cohesiveness, and feasibility of the applicant’s plans for workforce
and community investment, including the strength of the applicant’s strategy for
investing in the project’s facility and construction workforce.
D. Review and Selection Process
Independent reviewers will score concept plans and an Investment Committee will use those
scores and the selection factors to make the final determination regarding which applicants to
advance. Once full applications have been submitted, the Investment Committee will conduct a
merit review and consider whether to advance applications through the process or deny
applications. If the Investment Committee determines that an application is sufficiently
meritorious to be eligible to receive a CHIPS Incentives Award, it will make a recommendation
to a selecting official. The selecting official must approve an application prior to issuance of a
CHIPS Incentives Award. The following sections describe this process in greater detail.
1. Concept Plan Review
Concept plans will receive an initial review upon receipt for eligibility, completeness, and
responsiveness to this NOFO, including the program priorities (see Section I.C). Concept plans
determined to be ineligible, incomplete, or nonresponsive will be rejected. However, the
Department, in its sole discretion, may continue the review process for a concept plan that is
missing non-substantive information, the absence of which may easily be rectified during the
review process.
A minimum of three independent reviewers will conduct an individual merit assessment of each
concept plan that passes the initial review using the point system in Section V.A. The review
process may include consultation with outside contractors or experts if deemed necessary to
assist in the merit assessment.
An Investment Committee shall use those scores, in addition to any Selection Factors (Section
V.B), to make a written determination that:
• A concept plan should advance to the full application phase
• A concept plan should not advance to the full application phase, which shall be a final
and non-appealable decision45
2. Full Application Review
Full applications will receive an initial review upon receipt for eligibility, completeness, and
responsiveness to this NOFO, including the program priorities (see Section I.C). Full
applications determined to be ineligible, incomplete, or nonresponsive will be returned to the
applicant. However, the Department, in its sole discretion, may continue the review process for a
45 Further submissions by the same applicant for the project proposed in a concept plan the Department chooses not
to advance will not be reviewed or considered.
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full application that is missing non-substantive information, the absence of which may easily be
rectified during the review process.
An Investment Committee will conduct a qualitative merit assessment of each full application
that passes the initial review against the evaluation criteria in Section V.C. The Department may
contact applicants at any point during the process to obtain additional or clarifying information.
The review process may include interviews with applicants and consultation with outside
contractors or experts if deemed necessary to assist in the merit assessment.
The Investment Committee will make a written determination, based on the qualitative
assessment, the program requirements, the evaluation criteria (Section V.C) and one or more of
the prioritization and selection factors (Section V.B), that:
• The application appears eligible for an award and should advance to the due diligence
phase
• The application appears eligible for an award and should be held for further consideration
• The application should be denied, which shall be a final and non-appealable decision
The Department may work with applicants throughout the review and selection process to
maximize the chance of achieving the program’s economic and national security objectives,
including, for example, through discussing changes to application scope.
3. Due Diligence
Before entering into a final award for funding, the Department will conduct due diligence of the
full application for—including, but not limited to—national security risks, financial and
commercial information, environmental impacts, and other issues, to inform a final
determination on whether to make a CHIPS Incentives Award and on what terms.
An invitation to the due diligence phase is not an assurance of funding. During the diligence
phase, the Department will work directly with applicants to obtain all information required at this
stage. Due diligence may also include obtaining information from sources other than the
applicant. The Investment Committee may receive updates throughout this process. The
Department may use the services of financial, commercial, technical, environmental, or other
consultants or contractors and outside legal counsel in the due diligence phase. Applicants may
be required to contribute to payment for these services. Information about the services and their
costs will be provided to applicants upon or before entering the due diligence phase. Applicants
may withdraw their application if they are asked to pay for these services and do not agree to do
so.
When the due diligence phase is substantially complete, the Department and the applicant will
negotiate the applicable terms of the CHIPS Incentives Award.
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4. Award Preparation and Issuance
After the due diligence phase, the Investment Committee may recommend an application to the
selecting official, who must approve any applications for funding under this NOFO. The
selecting official may accept, modify, or reject a recommendation of the Investment Committee,
or return the recommendation for further evaluation, negotiation, or due diligence. In considering
a recommendation, the selecting official may consider any information available.
The awarding of the CHIPS Incentives Award occurs upon the issuance of Form CD-450 or
comparable award form by a NIST authorizing officer. The award decisions of the NIST
authorizing officer are final and may not be appealed.
The Department will provide any notice to Congress required under the CHIPS Act.46
E. Responsibility / Qualification Records on SAM.gov
In considering applications, the Department will consider the record of the applicant, as well as
of its corporate parent, in executing programs or activities under Federal grants, cooperative
agreements, procurement awards, and other transactions, as well as its integrity and business
ethics. As part of this consideration, prior to making a CHIPS Incentives Award, the Department
will review and consider the non-publicly available information about that applicant in the
designated integrity and performance system accessible through Responsibility / Qualification
Records on SAM.gov (formally the Federal Awardee Performance and Integrity Information
System (FAPIIS)). This review may also include the applicant’s corporate parent or affiliates that
are under common ownership and control. Each applicant, at its option, may review information
in the designated integrity and performance system accessible through SAM and comment on
any information about itself that a Federal awarding agency previously entered and is currently
in the designated integrity and performance system accessible through SAM. The Department
will consider any comments by the applicant, in addition to the other information in the
designated integrity and performance system, in making a judgment about the applicant’s
integrity, business ethics, and record of performance under Federal awards.
F. Additional Information
Any decision by the Department to deny an application shall be final and non-appealable.
Unsuccessful applicants will be notified of a denial by e-mail. Unsuccessful applications will be
retained in accordance with Department of Commerce recordkeeping requirements.
VI. Federal Award Administration Information
Information regarding federal award notices, administrative and national policy requirements,
funding availability and limitation of liability, and reporting requirements may be found on
chips.gov, which is incorporated by reference into this NOFO.
46 E.g., 15 U.S.C. § 4652(a)(2)(C)(i)(III).
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A. Federal Awarding Agency Contacts
Please direct programmatic inquiries to:
Bill Frauenhofer
Director, CHIPS Program Office
CHIPS Program Office
National Institute of Standards and Technology
Herbert C. Hoover Building
1401 Constitution Ave, NW
Washington, D.C. 20230
Phone: (301) 975-2000
Email: AskChips@chips.gov
Please direct media inquiries to:
Kristen Eichamer
Press Secretary
U.S. Department of Commerce
Herbert C. Hoover Building
1401 Constitution Ave, NW
Washington, D.C. 20230
Phone: (630) 901-5889
Email: KEichamer@doc.gov
VII. Appendix
A. Definitions
• covered incentive – an incentive offered by a governmental entity to (A) a covered
entity, for the purposes of constructing within the jurisdiction of the governmental
entity, or expanding an existing facility within that jurisdiction, a facility described
under “covered entity;” and (B) a workforce-related incentive (including a grant
agreement relating to workforce training or vocational education), any concession
with respect to real property, funding for research and development with respect to
semiconductors, and any other incentive determined appropriate by the Secretary, in
consultation with the Secretary of State.
• materials used to manufacture semiconductors – the chemicals, gases, raw and
intermediate materials, and other consumables used in either the front- or back-end
fabrication of semiconductors.
• Secretary – the Secretary of Commerce.
• semiconductor – an integrated electronic device or system, most commonly
manufactured using materials such as, but not limited to, silicon, silicon carbide, or
III-V compounds, and processes such as, but not limited to, lithography, deposition,
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and etching. Such devices and systems include but are not limited to analog and
digital electronics, power electronics, and photonics, for memory, processing,
sensing, actuation, and communications applications.
• semiconductor manufacturing equipment – specialized equipment integral to the
manufacturing of semiconductors and subsystems that enable or are incorporated into
the manufacturing equipment.
• supply chain – a system of organizations, people, activities, information, and
resources, possibly international in scope, that provides products or services to
consumers in the private and public sectors. For the purposes of this NOFO, the scope
of this definition encompasses any organization that directly contributes to the
lifecycle of a semiconductor, especially focusing on the design, manufacturing, and
packaging processes.
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