Commerce Department releases $8.5 billion for semiconductor manufacturing

March 21, 2024

The U.S. Department of Commerce and a major semiconductor manufacturer have entered a preliminary memorandum of terms (PMT) to fund up to $8.5 billion in semiconductor supply chain support.

The funds come from the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act and is planned to support projects in Arizona, New Mexico, Ohio and Oregon.

The semiconductor technology industry has seen increasing demand, especially with its uses in developing artificial intelligence (AI).

The CHIPS and Science Act, signed into law in 2022, provides funding incentives to produce semiconductors domestically. Past projects funded by the program include $3 billion to the National Advanced Packaging Program (NAPMP) and a similar investment earlier this year to fund small-scale semiconductor manufacturing facilities.

“The innovation sparked by this proposed investment would strengthen America’s technological and research leadership and significantly help enhance our nation’s manufacturing capacity,” Under Secretary of Commerce for Standards and Technology Laurie E. Locascio said in a statement.

The funds will support four planned ventures:

  • The construction of two new logic integrated circuits (IC) fabrication facilities and the renovation of another in Chandler, Arizona.
  • The modernization of two fabrication facilities in Rio Rancho, New Mexico into advanced packaging facilities.
  • The creation of a regional chipmaking network in New Albany, Ohio, including the construction of two new fabrication facilities, expanded capabilities and diversified supply-chain.
  • The upgrade and expansion of technology development facilities in Hillsboro, Oregon, focusing on cutting-edge semiconductor research using High NA EUV lithography equipment.

Photo by Vishnu Mohanan on Unsplash

Gracie Warhurst

Gracie Warhurst has joined Strategic Partnerships, Inc. as a writer and digital content creator for the new Government Market News portal. With a rich background in journalism from the University of Texas at Austin, Warhurst has experience as editor-in-chief of a literary magazine, assistant web editor, and project manager for an AI journalism project. She also contributed as a reporter during the development of SPI's news portal. Warhurst graduated summa cum laude in December 2023 with a Bachelor's in Journalism and a certificate in creative writing, making her a valuable asset to the SPI team.

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