President Biden Has Signed the CHIPS Act: What Happens Now?

Written By Paul M. Bell

Earlier this month, President Biden signed the CHIPS and Science Act into law: a historic moment for the future of American innovation. This legislation is the result of over a year of bipartisan negotiations in the House and Senate, and the American Semiconductor Innovation Coalition applauds Congress for their diligent efforts in reaching an agreement that will help restore U.S leadership in semiconductor innovation and ensure global competitiveness. 

As President Biden said in the post-passage release from the White House, “The CHIPS and Science Act is exactly what we need to be doing to grow our economy right now. By making more semiconductors in the United States, this bill will increase domestic manufacturing and lower costs for families. And, it will strengthen our national security by making us less dependent on foreign sources of semiconductors.” 

While there is no doubt that the passage of this bill is significant, many people are asking what comes next and who will lead the charge. The CHIPS and Science Act sets aside $11 billion for the Department of Commerce to invest in semiconductor research and development, including the establishment of the National Semiconductor Technology Center (NSTC) and National Advanced Packaging Manufacturing Program (NAPMP). As a next step, the Department of Commerce will likely formally issue a Request for Proposals (RFP) to invite entities to apply for CHIPS Act funding.   

Earlier this year, the Department of Commerce issued a Request for Information (RFI) that asked the semiconductor industry to provide guidance and feedback. The American Semiconductor Innovation Coalition (ASIC) responded to the RFI with a variety of ideas, emphasizing public-private partnerships and proposing a technology hub capable of filling the “valley of death” that currently exists in the domestic industry in just six months. 

At the center of ASIC’s proposed hub is the Albany Nanotech Complex,  the most advanced publicly-owned semiconductor facility in the United States and the product of 15 billion dollars in public and private investment over the past two decades. Albany Nanotech is home to a collaborative ecosystem that includes ASIC members IBM, SUNY Poly, Applied Materials, GlobalFoundries, Tokyo Electron, and others. Every day, 2,700 industry experts, students, and faculty work together to deliver top-tier chip innovation. 

Given its well-established partnerships with industry leaders and top academic research institutions as well as proven success in delivering groundbreaking research that has led to successful commercialization, Senate Majority Leader Chuck Schumer has deemed the Albany Nanotech Complex “the most shovel-ready” to quickly stand up the NSTC and NAPMP. In January, Senator Schumer along with New York Governor Kathy Hochul and U.S. Deputy Secretary of Commerce Don Graves visited the complex as a potential contender. By leveraging this proven ecosystem, the hub of the NSTC could be operational on day one and be fully operational in six months. 

If selected by the Department of Commerce, the American Semiconductor Innovation Coalition has already outlined its near-term priorities and plans in a vision document released in February of 2022. 

First, ASIC will rapidly open a fully-operational hub for the technology network. Next, “Centers of Excellence” will be established to support the hub’s operations, organized by leading companies and universities. Together, these will create a sustainable ecosystem that includes a wide variety of stakeholders: from academia to corporations to nonprofits to organizations large and small. 

Once collaborators have been brought together, ASIC will define and execute a research and development agenda focused on impact. When implemented, this agenda will facilitate successful and consistent “lab-to-fab” transfers and ensure the network is sustainable for long-term contributions to U.S. semiconductor leadership. 

On September 6, the U.S. Department of Commerce released its strategy outlining how leaders will implement $50 billion from the CHIPS Act of 2022. The CHIPS for America program will support four primary goals: 

  • Build a sufficient and stable supply of mature node semiconductors. 

  • Invest in R&D to develop the new network of innovation for the semiconductor ecosystem in the U.S. 

  • Create tens of thousands of good-paying manufacturing jobs and more than 100,000 construction jobs. 

  • Establish and expand domestic production of leading edge semiconductors in the U.S., of which the country currently makes 0% of the world’s supply. 

Funding documents, which will provide specific application guidance for the CHIPS for America program, will be released by early February 2023 according to the Department of Commerce.  

As we look forward to 2023, it is clear that the American Semiconductor Innovation Coalition is primed to stand up the National Semiconductor Technology Center and National Advanced Packaging Manufacturing Program quickly due to pre-existing infrastructure and relationships across the industry that would collectively serve as the foundation for these unprecedented projects. ASIC looks forward to being a part of the conversation in the coming months to ensure funding from the CHIPS and Science Act is optimized to create maximum impact in the domestic semiconductor industry. 

Read the vision document here.

Paul M. Bell
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