Manufacturers of semiconductors may now apply for some of the $39 billion that Congress set aside to help boost chip production, according to the Associated Press.
What’s going on: As authorized by last year’s CHIPS and Science Act, the Commerce Department’s CHIPS Program Office opened the application process on Tuesday, detailing requirements for interested parties.
- These include a plan for local workforce development, limitations on stock buybacks and—“for firms getting $150 million or more”—the provision of affordable, accessible child care for workers.
Why it’s important: The program “is aimed at sharpening the U.S. edge in military technology and manufacturing while minimizing the kinds of supply disruptions that occurred in 2021, after the start of the coronavirus pandemic, when a shortage of chips shut down factory assembly lines and fueled inflation.”
The NAM’s take: “The NAM is excited about this milestone in CHIPS funding that was announced this week,” said NAM Vice President of Infrastructure, Innovation and Human Resources Policy Robyn Boerstling.
- “We have been deeply engaged with the Department of Commerce and other stakeholders since the inception of the CHIPS legislation in 2021 to bolster the manufacturing capabilities and the supply of semiconductors in the U.S. This is an important step in that process.”