CHIPS Incentives Program Facilities for Semiconductor Materials and Manufacturing Equipment

The CHIPS Incentives Program for Facilities for Semiconductor Materials and Manufacturing Equipment, administered by the National Institute of Standards and Technology (NIST) within the U.S. Department of Commerce, provides federal assistance to strengthen U.S. leadership and security in semiconductor manufacturing. Authorized under the CHIPS and Science Act of 2022, this program supports projects for the construction, expansion, or modernization of commercial facilities involved in producing semiconductor materials and specialized manufacturing equipment. The initiative reflects a national priority to enhance domestic semiconductor capacity, reduce supply chain vulnerabilities, promote innovation, and ensure economic and national security resilience. The program seeks applications from eligible covered entities, including private-sector organizations, nonprofits, and consortia capable of substantially financing and executing qualifying projects. Applicants must demonstrate that CHIPS funding will directly incentivize investment in U.S. facilities that would not occur otherwise. Projects must focus on materials used to manufacture semiconductors—such as chemicals, gases, and raw or intermediate materials—or on the production of semiconductor manufacturing equipment. Projects under $20 million are generally not expected to receive awards unless they clearly show strategic national benefit. Applicants are also required to secure a state or local incentive and present plans for workforce and community investments, as well as partnerships with educational institutions for training and job placement, particularly for economically disadvantaged individuals. Eligible costs include expenses related to facility construction, site development, modernization, equipment, and workforce development. Ineligible uses include foreign construction, relocation of U.S. operations, dividend or equity repurchases, and repayment of federal loans. Applicants may not charge profit or fees above actual project costs. The funding amount varies by project and will be determined during review. While no specific cost-sharing requirement applies, the Department expects recipients to leverage substantial private and nonfederal investment and may decline funding if such commitments are insufficient. CHIPS awards are intended to supplement, not replace, private capital. The application process consists of two stages. In Phase 1, applicants submit a concept plan summarizing the project’s technical scope, financial structure, and alignment with program priorities. Selected applicants are then invited to submit full applications with detailed project descriptions, construction timelines, financial models, and evidence of state or local incentives. Full applications must also include cybersecurity, supply chain risk management, and commercial viability plans. Applications are submitted electronically via the CHIPS Incentives Program Portal at https://applications.chips.gov. Concept plans are currently being accepted through November 1, 2026, and there is no fixed closing date for full applications; these will be invited individually based on concept plan review. Applications are evaluated on their contributions to U.S. economic and national security objectives, technical feasibility, commercial sustainability, and workforce development. Projects must be capable of operation without additional federal funding once established. All recipients are subject to due diligence, federal award administration requirements, and ongoing reporting obligations. Program contacts include Bill Frauenhofer, Director of the CHIPS Program Office, reachable at AskChips@chips.gov or (301) 975-2000. Media inquiries should be directed to Kristen Eichamer, Press Secretary, at KEichamer@doc.gov. The amendment issued by NIST reopens the application period, emphasizing long-term investment opportunities that align with CHIPS Act goals to create high-wage jobs, bolster domestic supply chains, and sustain semiconductor innovation in the United States.