Today, the Department of Commerce is releasing pre-application and application instructions, guidebooks, and other resources for the first CHIPS for America funding opportunity for leading-edge, current-generation, mature-node, and back-end semiconductor fabrication facilities. In addition, the Department has posted on CHIPS.gov the pre-application materials for all applicants and full application materials for applicants seeking incentives for leading-edge facilities.
The Department’s robust application process will help ensure it funds projects that advance U.S. economic and national security while safeguarding taxpayer resources. The Department is asking applicants to submit detailed applications so that it has all the information it needs to evaluate applications and plan awards across the semiconductor ecosystem. This will include financial models that will help the Department evaluate the commercial viability and financial strength of projects and ensure the application is emphasizing important program priorities such as activating third party capital and customer commitments.
Read below about how these resources will help applicants.
Pre-Application Materials
Today, the Department is releasing the pre-application instructions and materials for its first funding opportunity, which is an optional component of the application process. The optional pre-application opens on March 31 for applicants seeking funds for leading-edge facilities and on May 1 for applicants seeking funds for current-generation, mature-node, and back-end manufacturing facilities. Applicants must submit a Statement of Interest at least 21 days before submitting a pre-application or full application.
The Department highly encourages applicants to consider submitting a pre-application as it provides an early opportunity for active dialogue between the CHIPS Program Office and potential applicants to ensure proposed projects are consistent with program requirements and address program priorities.
All pre-application materials and instructions are now available on CHIPS.gov, and the pre-application can be accessed through the portal at CHIPS.gov. The materials were created by the CHIPS Program Office, which includes staff with a deep understanding of financial analysis and structuring.
There are two additional key resources to help applicants complete a pre-application:
White Paper: Pre-Application Financial Model
First, the Department is releasing a white paper on project financial modeling that serves as a how-to guide for potential applicants who are preparing to submit a pre-application. The white paper is a step-by-step resource for constructing an Excel-based sample financial model.
Sample: Pre-Application Sample Financial Model
Second, the Department is sharing a sample Excel-based financial model tool paired with the above white paper for potential applicants who are preparing to submit a pre-application. The workbook serves as an example and/or template for completing the “Summary Financials for Each Project” requirement of the pre-application. The model is meant to be an illustrative example and is not a required template.
Guiding Principles for Full Application Financial Model
The Department will begin accepting applications on March 31 for leading-edge facilities and on June 26 for current-generation, mature-node, and back-end facilities. For potential applicants preparing to submit a full application, this document serves as a set of guiding principles on financial model structure, level of granularity, metrics, and scenario analysis related to projects included in the application. The principles were written by the CHIPS Program Office to provide additional detail and direction beyond those outlined in the funding opportunity and provide potential applications supplemental insight.
Workforce Development Guide
The Department of Commerce and the CHIPS Program Office are committed to ensuring potential applicants have a clear understanding of the workforce provisions included in the funding application. The Workforce Development Guide is intended to help applicants think holistically about what it will take to meet their workforce needs and increase the likelihood that these projects are successful.
To develop this guide, our workforce team has consulted industry, workforce training programs, higher education institutions, community colleges, labor unions, other government agencies, and more. The guide also draws on the best evidence from research on what works to develop strong talent pipelines.
The workforce guide has five main components:
- Partnerships: Insight and case studies on how applicants can partner with other institutions and programs to build strong workforces.
- Facility Workforce Plan: More information on developing investments and commitments to create good jobs to operate and sustain facilities.
- Construction Workforce Plan: More information on recruiting and retaining a workforce to successfully build facilities in a timely manner.
- Child Care Plan: More information to help applicants select models and practices to provide access to affordable, quality, reliable, and accessible child care for workers who will build and run the facilities.
- Guidance on Submitting Successful Plans: More on how the Department will review and evaluate workforce plans, helping applicants submit the strongest plans possible.
Environmental Questionnaire
The Department is also releasing an Environmental Questionnaire, which must be submitted as part of the optional pre-application process and is required for the full application. Pre application submissions are encouraged because responses to the questionnaire will enable the Department to assess the likely level of review under the National Environmental Policy Act (NEPA) early in the process. The Department is committed to conducting NEPA reviews as efficiently and expeditiously as practicable while also supporting potential applicants as they navigate environmental permitting requirements. The Department will work with potential applicants as soon as the Environmental Questionnaire is received to access and develop the data needed for NEPA review and necessary environmental permits.
Upcoming Webinars
In the coming weeks, CHIPS for America will also host a series of public webinars on the materials and resources released today. The webinars will give applicants and stakeholders the opportunity to ask questions and will include deep dives into the Workforce Development Guide, Environmental Questionnaire, the pre-application, financial modeling, and more.
Register for upcoming webinars on the CHIPS.gov website.
Secretary Raimondo on the Road
This week, President Biden will visit a semiconductor facility in North Carolina to kick off an Administration-wide “Investing in America” tour to highlight how his economic plan, including the CHIPS and Science Act, is impacting communities across the country. As part of the tour, Secretary Raimondo will also visit fiber optic cable manufacturers in North Carolina, which are delivering high-speech internet to businesses and families. Administration officials will visit over 20 states throughout the next two weeks and be joined by Members of Congress instrumental to passing bills Investing in America.
Learn More
Visit CHIPS.gov to learn more about CHIPS for America. The website contains many helpful resources including webinars, information about funding opportunities and implementation strategies, R&D updates, and more. If you have questions, please reach out to AskCHIPS@chips.gov.