CHIPS: A Critical Moment for Electronics (Part 2).
Part 2: What is being done to accelerate CHIPS innovation?
The CHIPS and Science Act essentially is a full court press by the United States to ensure we invest in the semiconductor lifecycle from start to finish. To understand why the CHIPS Act is so important, it is worth revisiting Part 1 (here) for an explanation of the underlying technology.
Generally speaking, the CHIPS Act works to improve four key focus areas:
1. Increase US national security by ensuring chip design security, advancing capabilities for domestic use, and improving a dependable, stable US chip supply chain.
2. Increasing semiconductor research in design, prototyping, production, packaging, and manufacturing in the US.
3. Creating innovative research and development incentives leveraging geographic expertise within the United States to create enduring capabilities.
4. Creating high-tech jobs in the United States and investing in work force development, even at early ages to highlight the impact and importance of microelectronics and our future.
There are other areas for sure, but the four focus areas above demonstrate key areas where most industry will participate directly.
Various US agencies have responsibilities for implementing CHIPS Act programs using appropriated funding. The Department of Defense has established a “Microelectronics Commons,” which is a geographic network of research hubs across the US that will accelerate the commercialization of capabilities with a national security focus through partnerships that include the DOD, defense contractors, start-ups, and research organizations (Source).
The Department of Commerce, through the National Institute of Standards and Technology (“NIST”), is creating multiple programs that will invest $39 billion for facilities and equipment and another $11 billion for advanced research and development (Source). As part of this effort, NIST recently launched the National Center for the Advancement of Semiconductor Technology (“Natcast”), a non-profit that will serve as the convener of academia, non-profits, industry, and government to distribute CHIPS Act funding. NatCast already is working to engage with industry directly through Requests for Information (read more here).
Tech companies should pay very close attention to the US Government’s efforts through the DOD ME Commons and NatCast, among other research programs. This is an opportunity for tech companies to drive the future of microelectronics directly, and earn revenue while innovating their products. As an example, an easy ground floor opportunity is joining NatCast’s community of interest, where NatCast is soliciting voices about how to structure itself, who should be involved, and how. Information is available here.
Also notable, most tech companies should be eligible to participate in research and get funding. Participation is not just limited to large established chips companies. In fact, the CHIPS Act aims to improve participations from start-ups and other similar industry participants. As an example, artificial intelligence company requirements could inform basic research into parallel computing (GPUs); cybersecurity companies could inform solutions for embedded security challenges; hardware and software companies could inform chip design logic and memory demands for next generation chips; and universities and non-profit research organizations can drive research based on technology roadmaps that industry creates.
Recent examples of funding include a $1.5 billion USD award to GlobalFoundries in New York, receiving an award in New York for enhancement of chip security for cars and defense technologies (Source). The CHIPS Act office also recently published a notice of intent regarding $300 million in cooperative grant funding for packaging, materials, and workforce development (Source).
Updates (April 22, 2024): Intel is set to receive up to $8.5 billion USD in funding, along with up to $11 billion USD in loans (Source). The US announced preliminary terms of an award up to $6.6 billion USD to the US subsidiary of the Taiwan Semiconductor Manufacturing Corporation (TSMC), which is the largest chips manufacturer in the world (Source). The US is looking to bolster the US presence of TSMC’s advanced production capabilities. Micron is set to receive $6.1 billion in grants for US chip manufacturing (Source). The US Department of Commerce recently issued a Notice of Funding Opportunity (“NOFO”) for small businesses totaling $52 million, with awards individually reaching approximately $2 million (Source).
In short, these opportunities are just getting started.
The opportunity for funding is not only from government. As stated in Part 1, the lifecycle of semiconductor development is deep and wide. Companies must collaborate, share information, and advance research through industry-funded research, all while protecting their competitive position. Almost every type of partnership among industry stakeholders could involve revenue-supported research. Each company should include in its strategic plan a CHIPS Act research roadmap with targeted partners and revenue opportunities.
Essentially, the CHIPS Act touches every corner of the tech industry to create a durable future for the US technology and ensure our national security. We are closing in on unprecedented opportunity for companies from start-ups to large corporations to direct the conversation and receive funding to drive next-generation research and development. Will your company be a part of that wave of innovation?
Contact Clock Speed G.C. for more information if your company is exploring CHIPS Act opportunities.
Note: This article has been updated on April 22, 2024 to identify additional funding opportunities announced since the original publication and to update related formatting.
Disclaimers: The above post does not qualify as legal advice.
Additionally, contacting Clock Speed G.C. does not create an attorney-client relationship. Please review our Disclaimer for additional information.
Cover photo by RF._.studio (Source).