SEMI is the industry association representing the global electronics manufacturing and design supply chain. It is hosting a virtual information session tomorrow on California CHIPS Act Support in the context of State and Local Government Incentives.
The CHIPS Act: What is it, and how it benefits the US semiconductor industry?
The CHIPS and Science Act of 2022 is a law signed by President Biden that allocates $52.7 billion in grants over the next five years to strengthen and revitalize the US position in semiconductor research, development, and manufacturing while investing in American workers.
It aims to solve supply chain vulnerabilities, promote the building of new semiconductor manufacturing facilities, and compete with other nations’ heavily funded sectors. The big players with US manufacturing operations will benefit the most, but smaller companies will also be indirect benefactors.
Funding Opportunities for Semiconductor Manufacturing
The state and local governments can support the CHIPS Act by offering tax incentives and subsidies for semiconductor manufacturers to locate or expand their operations,
investing in workforce development programs to train and educate individuals in the skills necessary to work in the semiconductor industry and promoting public-private partnerships to help advance research and development efforts in the field.
The CHIPS Act has announced the first funding opportunity for its incentives program for constructing, expanding, or modernizing commercial facilities for the front- and back-end fabrication of leading-edge, current-generation, and mature-node semiconductors. Medium-sized businesses can also benefit from the law.
The Department of Commerce will invest over $50 billion over five years, including $39 billion in manufacturing subsidies, to accelerate and drive domestic chip production. A 25% investment tax credit is in place for capital costs incurred in producing semiconductors and associated technology, which is expected to be worth $24 billion over the next ten years.
SEMI is a global industry association representing the electronics manufacturing and design supply chain, including companies involved in semiconductor manufacturing, equipment, materials, and services. As an industry association, SEMI is crucial in sharing information about the CHIPS Act and the funding opportunities it presents to its members and the broader electronics industry.
SEMI is a go-to resource for up-to-date information about the CHIPS Act and its funding opportunities, including the latest news on funding availability, eligibility criteria, and application processes. This information helps SEMI members to stay informed and prepared to take advantage of the funding opportunities presented by the CHIPS Act.
Moreover, SEMI also advocates for policies supporting the semiconductor industry’s growth and innovation, including the CHIPS Act. The association works closely with policymakers and industry stakeholders to promote the importance of the semiconductor industry to the global economy and the need for increased investment in semiconductor research and development.
The CHIPS Act represents a significant investment in the semiconductor industry by the US government, aimed at improving domestic chip production and reducing dependence on foreign suppliers. The funding provided through this Act will help to strengthen the entire electronics manufacturing and design supply chain, from research and development to production and distribution.
The involvement of SEMI, as the leading industry association, in sharing information about the CHIPS Act and funding opportunities is crucial for the success of this initiative. Ultimately, the success of the CHIPS Act will depend on the ability of the US government and industry to work together to develop and implement a comprehensive strategy for improving domestic chip production and securing the nation’s supply chain.