US Government offers $50 billion in subsidies for chip manufacturing and research

The United States opened applications for subsidies under the CHIPS and Science Bill and announced 10 top priorities. The subsidies include $39 billion for manufacturing and $11 billion for research and workforce development investment.

The CHIPS and Science Bill directs the Department of Commerce to provide incentives to chip manufacturers and companies critical to the chip supply chain, such as chip equipment and material suppliers. These incentives can include loans and loan guarantees, as well as grants. Additional funding can support local workforce development efforts. Companies may also be eligible for a 25% semiconductor manufacturing investment tax credit from the Department of Treasury.

The US Department of Commerce has revealed that specific subsidies will be disbursed in the form of cash, federal loans, or debt guarantees. The proportion of specific subsidies still needs to be evaluated on a case-by-case basis. However, the Department of Commerce also mentioned in the guidance that the total subsidies are expected to not exceed 35% of the overall project expenses, and most direct cash subsidies for most projects will fall between 5% and 15% of capital expenditures.

The CHIPS and Science Bill announced 10 top priorities, including authorizing $20 billion for the Technology Directorate Council, $16.9 billion for the Department of Energy, $10 billion for the Commerce Department's Technology Center, and $2.25 billion for expanding partnerships in the manufacturing industry, which have been developing advanced manufacturing and technology in different directions.

It's important to keep an eye on the CHIPS and Science Bill subsidies and their priorities to see if any of your partners or customers may benefit from the incentives and funding opportunities.