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US pulls back on CHIPS Act R&D funding

US pulls back on CHIPS Act R&D funding

Business news |
By Nick Flaherty

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The US government has cancelled the latest round of funding for R&D under the CHIPS Act as it is oversubscribed.

The CHIPS Program Office announced that it would not move forward with its third Notice of Funding Opportunity to construct, modernize, or expand commercial R&D facilities in the United States.

“The decision not to proceed with the CHIPS Program Office’s R&D NOFO at this time is a reflection of that process and recent direction from Congress in the latest appropriations law on the availability of CHIPS funding. The CHIPS for America is already oversubscribed, and our office is currently processing through concept plans and applications submitted for CHIPS incentives.  

The funding was aimed at providing incentives to construct, expand, or modernize eligible facilities for the ongoing research and development of semiconductors including the engineering, piloting, prototyping, experimenting, and testing of next generation semiconductor manufacturing technologies. This does not impact on the $11bn allocated to the CHIPS R&D office, says NIST.

“We recognize that the Department of Commerce was faced with a difficult decision to change course regarding the issuance of a third Notice of Funding Opportunity related to R&D under the CHIPS and Science Act due to recent legislative actions directing the department to make a $3.5 billion investment in secure enclave,” said Ajit Manocha, SEMI President and CEO.

“While we acknowledge the importance of the underlying objectives guiding recent decisions, we are concerned about their impact on longstanding plans for implementing the CHIPS Act, which was shaped by extensive stakeholder input and industry analysis.”

“Strong investment and support for R&D is essential to advance foundational technologies across the semiconductor supply chain and enhance the overall competitiveness of the U.S. semiconductor industry. Private R&D is the cornerstone of the semiconductor industry, propelling the next generation of innovation. SEMI urges Congress to work alongside the Department of Commerce to fulfill the intent of the CHIPS and Science Act of 2022 to fund private R&D activities under the legislation.

“Key investments to spur and scale private R&D projects must be paired with support for the National Semiconductor Technology Center (NSTC) to meet the objectives of CHIPS and Science Act and secure the United States’ technological leadership. SEMI stands ready to work with the Department of Commerce and Congress to ensure robust funding for private R&D projects.”

Instead the US government last week announced $54m for semiconductor metrology R&D in small and medium sized businesses.  The R&D ranges across multiple topics on research projects for critically needed measurement services, tools, and instrumentation; innovative manufacturing metrologies; novel assurance and provenance technologies and advanced metrology R&D testbeds.

Funded activities are expected to include compact cryogenic technologies, compact extreme ultraviolet (EUV) sources, and the seven grand challenges.

“CHIPS for America is committed to building opportunities for all businesses, including small businesses, to prosper as we grow the U.S. semiconductor industry. Because we recognize the high costs associated with innovation in the semiconductor industry, we’re offering awardees of this funding opportunity up to the maximum amount possible per award by the Small Business Innovation Research Program to ensure opportunity is within reach for all businesses seeking to be part of the U.S. semiconductor ecosystem,” said US Secretary of Commerce Gina Raimondo.

“Small businesses have an important role to play in the semiconductor ecosystem,” said Laurie Locascio, Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director. “This funding opportunity dedicated to CHIPS Metrology will help give small businesses the opportunity to take innovative ideas, scale them for the commercial marketplace, and boost the US economy.”

www.nist.gov

 

 

 

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