Commerce Implements Sen. Kelly-led Policy to Extend CHIPS Law Funding to Semiconductor Manufacturing Suppliers

On Friday, the US Department of Commerce CHIPS for America Office began implementing a key component of Senator Mark Kelly’s CHIPS and Science Act to provide funding for the construction, expansion, and modernization of semiconductor manufacturing suppliers. This critical component of the bill was created through Kelly’s Investing in Domestic Semiconductor Manufacturing Act. More than 40 Phoenix-area companies are actively considering investments to support Intel and TSMC’s combined $60 billion investments in Arizona semiconductor facilities.  

Kelly’s supplier provisions will expand the impact of the CHIPS Act:accelerating microchip manufacturing investments in Arizona, creating tens of thousands high-paying jobs, lowering costs, and strengthening our national security.  

“In order for Arizona to become a global hub for microchip manufacturing, we must invest in the entire manufacturing supply chain, including the companies that make the tools, equipment, and raw materials used in microchips,” said Sen. Kelly, a chief negotiator of the legislation. “Thanks to our work to secure funding opportunities for Arizona suppliers, the CHIPS Act will create even more high-paying jobs, further lower costs, and lessen our dependence on foreign supply chains.”  

Background:  

Kelly worked for nearly two years to negotiate and champion the CHIPS Act, which includes Kelly’s $52 billion plan to boost domestic microchip manufacturing. Thanks to Kelly’s leadership, Arizona is well positioned to become a global hub for microelectronics research, development, testing, manufacturing, and packaging.            

This Notice of Funding Opportunity allows companies to apply for financial incentives to support the construction, expansion, or modernization of manufacturing facilities which produce the materials and manufacturing equipment used to produce microchips. This builds upon the initial Notice of Funding Opportunity, announced in February, which helps microchip manufacturers build new factories and expand production. This current funding opportunity is for facilities that cost more than $300 million. The CHIPS office will then release an additional funding opportunity in the fall for facilities with a capital investment below $300 million.