News, Insights & Events
U.S. Department of Commerce Issues Expanded Notice of Funding Opportunity for Commercial Fabrication Facilities Under the CHIPS ACT
June 26, 2023
Brian J. Butler and Jared A. Joyce - Bond, Schoeneck & King
The U.S. Department of Commerce (DOC) has issued a new Notice of Funding Opportunity (NOFO) for commercial fabrication facilities which expands the pool of applicants eligible to obtain a portion of the $39 billion in incentives available under the CHIPS and Science Act.
The revised NOFO expands eligibility to include large semiconductor supply chain projects. Large semiconductor supply chain projects are those projects focused on the production of materials and equipment utilized in semiconductor production with a capital investment equal to or exceeding $300 million.
The DOC has retained the same five-part application process as outlined in the first funding opportunity. This process includes a statement of interest, an optional (but recommended) pre-application, a full application, a due diligence period, and lastly award preparation and issuance. Applications will be evaluated on a number of factors including the extent to which the application addresses the programs economic and national security objectives, commercial viability, financial strength, project technical feasibility and readiness, workforce development and broader impacts.
For wafer manufacturing facilities, pre-applications will be accepted on a rolling basis beginning on Sept. 1, 2023, and full applications will be accepted on a rolling basis beginning on Oct. 23, 2023.
For semiconductor materials and manufacturing equipment facilities for which the capital investment equals or exceeds $300 million, pre applications will be accepted on a rolling basis beginning on Sept. 1, 2023, and full applications will be accepted on a rolling basis beginning on Oct. 23, 2023.
The DOC will release an additional funding opportunity in the fall for smaller materials and manufacturing equipment supplier facility projects below $300 million.
If you have any questions about the information presented in this memo, please contact Brian Butler, Jared Joyce, any attorney in Bond’s semiconductor industry group or the Bond attorney with whom you are in regular contact.
