US Reduces CHIPS Act R&D Funding

The US government has made the decision to cancel the latest round of funding for research and development (R&D) under the CHIPS Act due to oversubscription. The CHIPS Program Office recently announced that it would not be moving forward with its third Notice of Funding Opportunity (NOFO) aimed at constructing, modernizing, or expanding commercial R&D facilities in the United States.

According to a statement from the CHIPS Program Office, the decision not to proceed with the R&D NOFO at this time is a result of the oversubscription of the CHIPS for America initiative. The office is currently processing concept plans and applications submitted for CHIPS incentives, reflecting recent direction from Congress in the latest appropriations law regarding the availability of CHIPS funding.

The funding was intended to provide incentives for the construction, expansion, or modernization of eligible facilities to support ongoing research and development of semiconductors, including activities such as engineering, piloting, prototyping, experimenting, and testing of next-generation semiconductor manufacturing technologies. It's important to note that this cancellation does not impact the $11 billion allocated to the CHIPS R&D office, as confirmed by the National Institute of Standards and Technology (NIST).

Despite the cancellation of the latest funding round, industry stakeholders have expressed concerns about the impact on the implementation of the CHIPS Act. Ajit Manocha, President and CEO of SEMI, emphasized the importance of strong investment and support for R&D to advance foundational technologies in the semiconductor supply chain and enhance the competitiveness of the US semiconductor industry.

SEMI urges Congress to collaborate with the Department of Commerce to fulfill the objectives of the CHIPS and Science Act of 2022, emphasizing the need for robust funding for private R&D projects. The organization also highlights the importance of supporting the National Semiconductor Technology Center (NSTC) to secure the US's technological leadership in the semiconductor industry.

In a recent development, the US government announced a $54 million funding allocation for semiconductor metrology R&D in small and medium-sized businesses. This funding will support research projects covering critical measurement services, innovative manufacturing metrologies, assurance technologies, and advanced metrology R&D testbeds.

The funded activities are expected to include advancements in compact cryogenic technologies, extreme ultraviolet (EUV) sources, and addressing the seven grand challenges in the semiconductor industry. US Secretary of Commerce Gina Raimondo emphasized the commitment of CHIPS for America to create opportunities for businesses of all sizes to thrive in the semiconductor industry.

Laurie Locascio, Under Secretary of Commerce for Standards and Technology and NIST Director, highlighted the importance of small businesses in the semiconductor ecosystem and how the funding dedicated to CHIPS Metrology will enable these businesses to innovate, scale their ideas for the commercial market, and contribute to the growth of the US economy.