Who Has Officially Obtained CHIPS Funding?

Updated: Hemlock and the digital twins R&D center have obtained funding. Others are on the waiting list.

By Mark LaPedus

The U.S. government is in the process of distributing the funding awards to select semiconductor companies under the CHIPS and Science Act, a program designed to expand chip and packaging production in the United States.

GlobalFoundries (GF), Intel, Micron, TI, Samsung, TSMC and others have officially obtained direct funding awards under the CHIPS Act (See list below). Many others are still on the waiting list for funding, but CHIPS Act itself faces an uncertain future with possible budget cuts looming on the horizon.

The CHIPS Act is supposed to jumpstart chip manufacturing in the U.S. For years, the U.S. has been the leader in designing new chips in the market. But U.S.’s worldwide share of chip-manufacturing capacity has declined from 37% in 1990, to 19% in 2000, and to 10% in 2022, according to the U.S. Semiconductor Industry Association (SIA) and Boston Consulting Group (BCG).

In response, the U.S. government in 2022 launched a new program called the CHIPS and Science Act. The CHIPS Act set aside $39 billion in grants for manufacturing and $11 billion in funding for R&D and workforce development. The U.S. government has awarded select companies with grants and/or tax credits for use in building new fabs and/or expanding existing chip facilities in the U.S. The other goal is to provide funding for various chip-manufacturing technologies, such as lithography, metrology and packaging.

Initially, the CHIPS program was beset with red tape and delays. The U.S. government took too long to distribute the awards. More recently, the government has loosened its purse strings and is doling out billions of dollars in funding to select companies.

Going forward, however, the CHIPS Act faces an uncertain future. President-elect Donald Trump, who won the U.S. election in November 2024, has criticized the CHIPS Act, leaving many to wonder about the future of the program. The Trump administration, which will assume control of the U.S. government in January 2025, may continue to fund the CHIPS Act, but it will likely make some cuts in the program or even try to repeal it.

It would be a major mistake to scrap the CHIPS Act in its entirety. Simply put, the U.S. needs more domestic semiconductor manufacturing. It’s a matter of national security, as a large percentage of the world’s chips are manufactured by various companies in Asia.

Still, the CHIPS program needs accountability. Companies and the various R&D initiatives should hit certain milestones before they obtain funding. And some initiatives in the CHIPS Act are questionable and could end up on the chopping block.

For now, though, the CHIPS Act will remain in place. Nonetheless, Semiecosystem will maintain and update a list of which companies and R&D entities have officially obtained funding, and which organizations are still on the waiting list (See below for the current lists). If the Trump administration makes cuts, Semiecosystem will list those as well.

Who has obtained funding?

The CHIPS Act was enacted in 2022, as part of a bipartisan effort in the U.S. Congress. At that point, the U.S. government referred to the CHIPS Act as the CHIPS for America initiative.

This initiative includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the U.S. Department of Commerce.

The CHIPS program involves $39 billion in grants, which are awarded to select companies and R&D projects. Separately, companies are also eligible for a 25% investment tax credit (ITC), if they invest in a manufacturing facility and/or new fab equipment. The government hasn’t disclosed which companies have taken advantage of the ITC. But it is widely believed that GlobalFoundries, Intel and others have been the recipients of the ITC.

The government has been more transparent about the grants. So far, the government has announced various funding awards, or grants, for a growing number of companies and R&D programs.

Most of these announcements are preliminary and non-binding agreements, however. Many companies are still negotiating with the U.S. government to obtain funding and/or tax credits. Only a few these announcements have resulted in actual funding dollars.

One of the early funding awards occurred in 2022, when the CHIPS Metrology program was formed and obtained funding under the CHIPS Act. The CHIPS Metrology program, which resides within NIST, is developing next-generation metrology systems. Metrology equipment is used to measure the tiny structures in chips.

At that point, the program appeared to have stalled. More recently, though, the government has accelerated its efforts to distribute the grants. For example, on Sept. 19, 2024, the government officially awarded $5 million to 17 small businesses under the CHIPS Act. These businesses are developing new metrology equipment and simulation software tools. Click here for the award winners.

Others are also beginning to officially obtain direct funding awards, including:

Polar Semiconductor

On Sept. 24, 2024, the U.S. Department of Commerce announced its first official manufacturing funding award to Polar Semiconductor. Polar was awarded up to $123 million in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities initiative. The funds will be distributed based on the completion of project milestones.

In addition to CHIPS funding, Polar also obtained $175 million in equity financing. With the funding, Polar hopes to transform itself into a U.S.-based foundry vendor.

TSMC

On Nov. 15, 2024, TSMC was officially awarded up to $6.6 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities initiative. The government will distribute the funds based on TSMC’s completion of project milestones.

With help from the funding, TSMC is on track to begin high-volume production in its first fab in Arizona by the first half of 2025. TSMC plans to build two additional fabs in Arizona.

GlobalFoundries

On Nov. 20, 2024, GlobalFoundries (GF) was officially awarded up to $1.5 billion in direct funding under the same initiative. The government will distribute the funds based on the completion of project milestones.

The funding will be split across three projects: 1) Malta, N.Y.–New 300mm fab project; 2) Malta, N.Y.–The expansion of the company’s existing fab; and 3) Burlington, Vt.--Fab revitalization program.

BAE

On Nov. 25, 2024, the U.S. Department of Commerce awarded BAE Systems up to $35.5 million in direct funding. The award will support the modernization of BAE’s fab in Nashua, N.H., which produces monolithic microwave integrated circuits (MMICs) for military aircraft and commercial satellite systems. The government will distribute the funds based on the completion of project milestones.

Rocket Lab

On Nov. 25, 2024, the government awarded Rocket Lab, the parent company of space power provider SolAero Technologies, up to $23.9 million in direct funding. The funds will help create a more resilient supply of space-grade solar cells that power spacecrafts and satellites. The government will distribute the funds based on the completion of project milestones.

Intel

On Nov. 26, 2024, the U.S. Department of Commerce officially awarded Intel up to $7.86 billion in direct funding under the CHIPS Act. Originally, Intel was supposed to obtain $8.5 billion in funding. But the funding award was reduced after Intel secured a separate $3 billion contract to produce advanced chips for the U.S. government. In any case, the government will distribute the funds based on Intel’s completion of project milestones.

Here's a breakdown of Intel’s funding awards under the CHIPS Act:

*Intel’s Arizona fab operations—$3.94 billion in direct funding

*Intel’s Oregon fab operations—$1.86 billion

*Intel’s Ohio fab operations—$1.5 billion

*Intel’s New Mexico packaging operations—$500 million

*Intel also plans to claim the U.S. Treasury Department’s Investment Tax Credits.

Absolics, Entegris

On Dec. 5, 2024, the U.S. Department of Commerce finalized two separate awards under the CHIPS Act. The agency awarded Absolics, an affiliate of the Korea-based SKC, up to $75 million in direct funding, and awarded Entegris up to $77 million in direct funding.

For Absolics, the award supports the construction of a 120,000-square-foot facility in Covington, Ga., and the development of a glass substrate technology for use in advanced packaging. First deliveries to customers are expected in 2025 and production capacity is expected to kick in 2027.

For Entegris, the award will support the construction of a manufacturing center in Colorado Springs, Colo. The manufacturing center, which is targeted to begin initial commercial operations in 2025, will support the production of liquid filtration products, as well as front-opening-unified pods (FOUPs). FOUPs are specialized containers that secure semiconductor wafers while they are handled and transported during the manufacturing process in a fab.

Micron

On Dec. 10, 2024, the U.S. Department of Commerce awarded Micron Technology up to $6.165 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.

This more than $6.1 billion investment in Clay, N.Y. and Boise, Id. supports the construction of several state-of-the-art memory chips facilities.

GlobalWafers

On Dec. 17, 2024, the U.S. Department of Commerce announced direct funding awards to Taiwan’s GlobalWafers and its subsidiaries of up to $406 million under the CHIPS Act.

As part of the plan, the CHIPS for America program will provide GlobalWafers with $380 million in direct funding to support the construction of a 300mm silicon wafer manufacturing facility in Sherman, Tx. In addition, GlobalWafers has also agreed to convert a portion of its existing silicon epitaxy wafer manufacturing facility in Sherman, Tx., to silicon carbide (SiC) epitaxy wafer manufacturing.

It will also provide GlobalWafers with $20 million in direct funding to support the construction of a 300mm silicon-on-insulator (SOI) wafer manufacturing facility in St. Peters, Mo. SOI technologies involve both FD-SOI and RF SOI.

Silicon wafers, a key part of the semiconductor supply chain, are critical for the U.S.

SK hynix

On Dec. 19, 2024, the U.S. Department of Commerce awarded South Korea’s SK hynix up to $458 million in direct funding under the CHIPS and Science Act to establish a high-bandwidth memory (HBM) advanced packaging fabrication and R&D facility. This funding will support and build upon SK hynix’s investment of approximately $3.87 billion in West Lafayette, In., to build a memory packaging plant for AI products and an advanced packaging R&D facility.

HBM is a hot product and is in short supply.

Samsung

On Dec. 20, 2024, the U.S. Department of Commerce awarded Samsung up to $4.745 billion in direct funding under the CHIPS Act. The funds will support the construction of two new leading-edge logic fabs and an R&D fab in Taylor, Tx. as well as an expansion to its existing Austin-based facility.

Texas Instruments (TI)

On Dec. 20, 2024, the U.S. Department of Commerce awarded TI up to $1.61 billion in direct funding under the CHIPS Act. TI will obtain up to $900 million in total direct funding to support the construction of two new, large-scale 300mm fabs in Sherman, Tx. The fabs are expected to produce 65nm to 130nm analog and embedded chips.

In addition, the CHIPS for America award will also provide TI’s Lehi, Ut. site up to $700 million in total direct funding to support the construction of a new, large-scale 300mm fabrication facility. That fab will produce 28nm to 65nm analog and embedded chips.

Amkor

On Dec. 20, 2024, the U.S. Department of Commerce awarded Amkor up to $407 million in direct funding under the CHIPS Act. This award will directly support Amkor’s investment of approximately $2 billion in a greenfield advanced packaging and test facility in Peoria, Ariz.

Digital twins R&D center

On Jan. 3, 2025, the U.S. Department of Commerce officially awarded the Semiconductor Research Corp. (SRC) with $285 million to establish and operate a CHIPS Manufacturing USA institute headquartered in Durham, N.C.

The new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA), will focus on efforts to develop, validate, and use digital twins to improve the semiconductor design, manufacturing, packaging and test processes. Digital twins are virtual models that replicate physical objects, like chips or machinery. Researchers use these virtual models to design, develop, and test processes, or entire supply chains digitally before deploying them in real life.

Hemlock

On Jan. 7, 2025, the U.S. Department of Commerce awarded Hemlock Semiconductor (HSC) up to $325 million in direct funding to support the construction of a new manufacturing facility on HSC’s existing campus in Hemlock, Mich., dedicated to the production of hyper-pure semiconductor-grade polysilicon.

HSC is the only U.S.-owned manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the leading-edge semiconductor market.

CHIPS funding announcements still in the works

The U.S. government has also announced a number of other funding awards with various companies, and R&D entities, under the CHIPS Act. These announcements are still in the preliminary stages and have not been finalized.

These companies are still on the waiting list to obtain funding. They include:

*Akash—Thermal management systems ($18.2 million)

*Bosch-Fab upgrade ($225 million)

*Coherent—150mm indium phosphide (InP) manufacturing line ($33 million)

*Corning–Substrates for photomasks ($32 million)

*Edwards Vacuum–Vacuum pumps ($18 million)

*HP–Upgrade MEMS fab ($50 million)

*Infinera–Optical component fabrication ($93 million)

*Microchip–Upgrade fabs ($162 million)

*Micron–Upgrade Virgina memory fab ($275 million)

*Powerex–Power modules ($3 million)

*Rogue Valley Microdevices–MEMS fab ($6.7 million)

*SkyWater—Upgrade fabs ($16 million)

*Wolfspeed–Power device fabrication ($750 million)

*X-Fab—Upgrade silicon carbide fab ($50 million)

R&D facilities

The U.S. government has also announced the formation of several R&D facilities under the CHIPS Act. Some facilities may have obtained partial funding. Others have not. Here’s some (but not all) of the major R&D facilities in the works:

*In 2023, the government announced the formation of the National Semiconductor Technology Center (NSTC), a public-private R&D consortium. The NSTC is still in the works.

*In 2023, the government announced $3 billion in funding for the National Advanced Packaging Manufacturing Program, which is also in the works.

*In 2024, the government announced plans to establish an extreme ultraviolet (EUV) lithography R&D center in New York state. The center is still in the works with proposed funding of $825 million.

*In 2024, the government announced plans to establish the CHIPS for America Design and Collaboration Facility. Funding for the Sunnyvale, Calif.-based facility is still in the works.

*In 2024, the U.S. government entered negotiations to invest up to $300 million in advanced packaging research projects in Georgia, California, and Arizona.

*On Jan. 6, 2025, the Department of Commerce selected the Arizona State University (ASU) Research Park in Tempe, Ariz. as the anticipated location for its third flagship CHIPS for America research and development facility. The facility is expected to host a 300mm front-end semiconductor manufacturing line as well as an advanced packaging research facility.

This R&D facility, dubbed the CHIPS for America NSTC Prototyping and National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Piloting Facility (PPF), will enable researchers to develop and test new materials, devices and advanced packaging solutions in a state-of-the-art R&D environment. This facility is expected to be operational in 2028.

(Please send comments to: mdlapedus@gmail.com Semiecosystem reserves the right to post and edit comments.)