CHIPS Act – Commercial Fabrication Facilities: Notice of Funding Opportunity Released

On February 28, 2023, the U.S. Department of Commerce (“Commerce”) released details on the application process for projects to construct, expand or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging (see CHIPS Incentives Program – Commercial Fabrication Facilities ). Awards will take the form of direct funding, federal loans, and/or federal guarantees of third-party loans. Commerce will be releasing separate Notices of Funding Opportunity (NOFO) for semiconductor materials and equipment facilities in the late spring, and one for research and development facilities in the fall. Direct funding for all three NOFOs is available in an amount up to $38.22 billion and up to $75 billion in direct loan or guaranteed principal amounts. Below is a detailed discussion of eligible projects, amount and types of funding, the application process and timing, evaluation criteria and restrictions for awardees. Notably, however, Commerce has left many important questions unanswered. Neither the NOFO nor the fact sheets provide guidance on the manufacturing clawback or the technology clawback. With regard to the manufacturing clawback, the NOFO simply states the following: Under the CHIPS Act, a successful applicant must enter into an agreement […]

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