C&I Alert: Congress approves over $52 billion in incentives for semiconductor industry
New law will provide new incentives and funding for vital American industry via CHIPS & Science Act of 2022
To increase the competitiveness of a critical American industry, Congress today approved landmark legislation to deliver more than $52 billion in incentives and funding to spur domestic production of semiconductor technologies in the United States.
After breaking through a sixty-vote threshold in the Senate earlier this week, and following successful passage in the House of Representatives today, the legislation is expected to be signed swiftly by President Joe Biden.
Key provisions of the groundbreaking legislation include:
CHIPS for America Fund – $50 billion: Direct grants, loan and loan guarantees, and workforce development funding to be allocated over 5 years to implement Commerce Department semiconductor incentives, including:
$39 billion in direct grants for chip production, including $19 billion for FY22, and $5 billion annually for FY23 through FY26
$11 billion appropriated for R&D and workforce development programs, which includes the National Semiconductor Technology Center (NSTC), and the National Advanced Packaging Manufacturing Program
CHIPS for America Defense Fund – $2 billion: Funding for the Microelectronics Commons, a national network for onshore, university-based prototyping, lab-to-fab transition of semiconductor technologies and workforce training
Advanced Manufacturing Investment Credit – 25% investment tax credit: Federal tax credit for investments in semiconductor manufacturing and the manufacturing of the specialized tooling equipment required in the semiconductor manufacturing process.
CHIPS for America International Technology Security & Innovation Fund – $500 million: Allocation for coordination with foreign government partners to support communications technology security and semiconductor supply chain activities
CHIPS for America Workforce & Education Fund – $200 million: Funding for the National Science Foundation to promote growth of the semiconductor workforce
Public Wireless Supply Chain Innovation Fund – $1.5 billion: Direct funding for the Public Wireless Supply Chain Innovation Fund
National Science Foundation for the Future – $81 billion: Authorizes funding for 5 years for key activities such as research and related activities, STEM education, and major research equipment.
Regional Technology Hubs Program – $10 billion: Funding to create 20 geographically distributed “regional technology and innovation hubs: in non-established technology centers.
Early-Career Research Fellowship Program – $500 million: Establishes a 2-year pilot program to support highly-qualified early-career scientists to conduct research for up to 2 years at the institution of their choice
To begin exploring how your business may be able to secure and leverage these programs and new funding opportunities, connect with the experts on the Hickey Incentives Team today!
Contact us today to begin the exploratory process for your business!