2023-NIST-CHIPS-SMME-01-Amendment.pdf

CHIPS Incentives Program – Facilities for Semiconductor Materials and Manufacturing Equipment

Notice of Funding Opportunity

AMENDED NOTICE OF FUNDING OPPORTUNITY (NOFO)

CHIPS Incentives Program – Facilities for Semiconductor Materials and Manufacturing

Equipment

EXECUTIVE SUMMARY

• Federal Agency Name: National Institute of Standards and Technology (NIST), United

States Department of Commerce

• Funding Opportunity Title: CHIPS Incentives Program – Facilities for Semiconductor

Materials and Manufacturing Equipment

• Announcement Type: Amendment

• Funding Opportunity Number: 2023-NIST-CHIPS-SMME-01

• Assistance Listing (CFDA Number): 11.037 – CHIPS Incentives Program

• Dates:

o This amendment re-opens and extends the period of acceptance of applications, which was originally open from December 1, 2023, through February 1, 2024, so that concept plans will now be accepted through November 1, 2026.

o For applications that are invited to advance to the full application phase, the

CHIPS Program Office will communicate full application submission dates to applicants individually upon notifying them of their advancement.

The Department of Commerce may amend this NOFO at any time. It may also close the funding opportunity with at least 60 days’ notice.

• Application Submission Address: https://applications.chips.gov

Funding Opportunity Description: The CHIPS Incentives Program aims to catalyze long-term economically sustainable growth in the domestic semiconductor industry in support of U.S.

economic and national security. This is an amendment to the second Notice of Funding

Opportunity under this program. It seeks applications for projects for the construction, expansion, or modernization of commercial facilities for semiconductor materials and manufacturing equipment.

Table of Contents

I. Program Description

A. Program Objectives

B. Program Summary

C. Program Priorities

II. Federal Award Information

A. Funding Instrument

B. Funding Availability

C. Award Amount

D. Period of Performance

III. Eligibility Information

A. Eligible Applicants

IV. Application and Submission Information

A. How to Access an Application Package

B. Submission Dates and Times

C. Confidential Information

D. False Statements

E. Application Requirements

F. Requirements for Attachments Submitted through the CHIPS Incentives Program

Application Portal

G. Content and Form of Concept Plan

H. Content and Form of Full Application Submission

I. Funding Restrictions

J. Prohibition on Profit and Fees

V. Application Review Information

A. Concept Plan Evaluation Criteria

B. Selection Factors

C. Full Application Evaluation Criteria

D. Review and Selection Process

E. Responsibility / Qualification Records on SAM.gov

F. Additional Information

VI. Federal Award Administration Information

A. Federal Awarding Agency Contacts

VII. Appendix

A. Definitions

FULL ANNOUNCEMENT TEXT

I. Program Description

This Notice of Funding Opportunity (NOFO) seeks applications for the CHIPS Incentives

Program, authorized by Title XCIX—Creating Helpful Incentives to Produce Semiconductors for America of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal

Year 2021 (Pub. L. 116-283, referred to as the CHIPS Act or Act), as amended by the CHIPS

Act of 2022 (Division A of Pub. L. 117-167). The CHIPS Incentives Program is administered by the CHIPS Program Office (CPO) within the National Institute of Standards and Technology

(NIST) of the United States Department of Commerce (Department).

This NOFO seeks applications for CHIPS Incentives Awards that will support investments in the construction, expansion, or modernization of commercial facilities in the United States for semiconductor materials and semiconductor manufacturing equipment. Awards made pursuant to this NOFO will be in a form consistent with the CHIPS Act.

A. Program Objectives

The CHIPS Incentives Program aims to strengthen U.S. economic and national security, including economic resilience and competitiveness. The CHIPS Act sets forth multiple dimensions of this overriding objective:

• Strengthening the security and resilience of the semiconductor supply chain, including by mitigating gaps and vulnerabilities

• Providing a supply of secure semiconductors relevant for national security

• Strengthening the leadership of the United States in semiconductor technology

• Growing the economy of the United States and supporting job creation in the United

States

• Bolstering the semiconductor and skilled technical workforces in the United States

• Improving the resilience of the semiconductor supply chains of critical manufacturing industries1

For the CHIPS Incentives Program to be successful on these many dimensions, it must lay the groundwork for long-term growth and economic sustainability in the domestic semiconductor industry and promote the secure and resilient supply chains on which the sector relies. The industry must have a robust and skilled workforce and a diverse base of suppliers for semiconductor production. It must support research and development (R&D) that will drive innovation in design, materials, and processes that will accelerate the industries of the future.

And it must support the broader U.S. economy, propelling American workers into high wage careers, upholding the dignity of hard work, and delivering the talent businesses need to power the nation’s economic resurgence.

1 See 15 U.S.C.§ 4652(d).

In addition, for the CHIPS Incentives Program to succeed, the Federal funds invested must serve as a catalyst to galvanize private, state, and local investment in the semiconductor industry. That is, the program funds are a supplement to, not a replacement for, other sources of capital.

The CHIPS Incentives Program seeks to fund applicants that demonstrate a commitment to investment in the United States for the long term and projects that maximize private sources of capital. Only private industry can marshal the resources necessary to make the sustaining investments needed in the decades that follow to maintain a resilient, economically viable, and growing U.S. semiconductor industry.

B. Program Summary

The CHIPS Incentives Program is intended to fund a variety of projects to achieve its economic and national security objectives. Projects will vary in technology, scale, cost, location, risk, workforce needs, and other factors. To fund any project, the Department must determine that the project is in the economic and national security interests of the United States and satisfies the

CHIPS Act’s eligibility requirements, as well as the amount of funding appropriate for the investment.2

This NOFO describes considerations and procedures the Department will use to make these determinations. This section summarizes, in a question-and-answer format, certain eligibility and procedural requirements for applications under this NOFO.

1. What projects are eligible for funding under this NOFO?

This NOFO seeks applications for the construction, expansion, or modernization of commercial facilities in the United States in the following categories.

Semiconductor Materials Facilities for the manufacture or production, including growth or extraction, of materials used to manufacture semiconductors, which are the chemicals, gases, raw and intermediate materials, and other consumables used in semiconductor manufacturing.

Semiconductor Manufacturing Equipment Facilities for the physical production of specialized equipment integral to the manufacturing of semiconductors and subsystems that enable or are incorporated into the manufacturing equipment.

Note that the Department will not fund applications that lack sufficient scale to meaningfully contribute to the objectives outlined in this NOFO. The Department expects that projects with capital investments below $20 million are unlikely to meet this standard. If a sub-$20 million project does meet this standard, the Department generally expects other stakeholders—including chipmakers, larger suppliers, and state and local entities—to make the project viable without

CHIPS funding.

2 See 15 U.S.C. §§ 4652(a)(2)(C)(i)(I)-(II), 4652(a)(3)(A).

2. What are the eligibility requirements for funding under this NOFO?

The CHIPS Act imposes several eligibility requirements for funding.

First, funding is available only to “covered entities.”3 This term includes private entities or consortia of private and public entities with a demonstrated ability to substantially finance, construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.4 Section III.A describes this requirement in more detail.

Second, funding is available to covered entities “to incentivize investment in facilities and equipment in the United States” for the production of materials used to manufacture semiconductors or semiconductor manufacturing equipment.5 An applicant must demonstrate how the CHIPS Incentives requested will incentivize the applicant to make investments in facilities and equipment in the United States that would not occur in the absence of the CHIPS

Incentives.

Third, funding must be for the construction, expansion, or modernization of facilities of the kind described in Section I.B.1.6 For the purposes of this NOFO, construction means the construction of a new facility. Expansion or modernization includes, for example, significantly enlarging an existing facility, increasing the capacity of an existing facility via a material capital investment, such as by adding a new production line, and upgrading an existing facility, such as converting a facility from another use. Both expansions and modernizations will be evaluated on the materiality of the investment relative to existing production. Projects that involve relocating a material amount of equipment, facilities, or production from one facility in the United States to another facility, new or expanded, are disfavored. Such projects will be deemed nonresponsive to this NOFO absent a compelling economic or national security justification.7

Fourth, the CHIPS Act specifies that the covered entity must have a documented interest in constructing, expanding, or modernizing an eligible facility.8 With respect to such construction, expansion, or modernization, the CHIPS Act requires that the covered entity shall:

• Have been offered a covered incentive from a state or local jurisdiction (state or local incentive) where the project is located, for the purposes of attracting the construction, expansion, or modernization of the facility9

3 See 15 U.S.C. § 4652(a)(1).

4 See 15 U.S.C. § 4651(2).

5 See 15 U.S.C. § 4652(a)(1).

6 See 15 U.S.C. § 4652(a)(4)(A).

7 15 U.S.C. § 4652(a)(2)(C)(iv).

8 15 U.S.C. § 4652(a)(2)(B)(i).

9 15 U.S.C. § 4652(a)(2)(B)(ii)(I); 15 U.S.C. § 4651(3)(A).

• Make commitments to worker and community investment, including through training and education benefits paid by the covered entity and programs to expand employment opportunities for economically disadvantaged individuals10

• Secure commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals11

• Have an “executable plan,” i.e., a plan reasonably capable of successful implementation, to sustain the facility without additional funding from the CHIPS Incentives Program12

• Have documented its workforce needs and produced a strategy to meet such workforce needs as well as the aforementioned commitments to worker and community investment13

• Have determined the types of semiconductor technology it will produce at the proposed facility, and the customers, or categories of customers, to whom the items will be sold,14 and

• Have developed an “executable plan” to identify and mitigate relevant semiconductor supply chain security risks.15

The Department has designed this NOFO, including the application requirements and review process, to ensure that these statutory requirements will be met for projects receiving CHIPS

Incentives.

3. What constitutes a project for purposes of an application?

For the purposes of an application, a “project” is a set of capital expenditures for the construction, expansion, or modernization of a facility. A project also includes any related workforce development or operating expense costs for the facility that the applicant proposes to cover with CHIPS Incentives funds.

4. May applicants apply for funding under this NOFO as part of a consortium, and if so, how?

Yes, applicants may apply for funding under this NOFO as part of a consortium. The Department will award funding on a per-project basis to consortium members proposing to construct, expand, or modernize a facility eligible under this NOFO.

The Department expects the entity submitting the application to be the for-profit entity within the consortium that will own and/or operate the project facility. These applicants must also submit a consortium narrative detailing the other members of the consortium and the overall strategic vision of the consortium, among other relevant information.

10 15 U.S.C. § 4652(a)(2)(B)(ii)(II)(aa)-(bb).

11 15 U.S.C. § 4652(a)(2)(B)(ii)(III).

12 15 U.S.C. § 4652(a)(2)(B)(ii)(IV).

13 15 U.S.C. § 4652(a)(2)(B)(ii)(VI).

14 15 U.S.C. § 4652(a)(2)(B)(ii)(V).

15 15 U.S.C. § 4652(a)(2)(B)(iii).

Under this NOFO, consortia do not need to have an umbrella organization or other formal legal structure. Consortium members must, however, actively collaborate and align on the content of each application submitted as part of the consortium. In evaluating projects submitted as part of a consortium, the Department will consider the extent to which the consortium’s strategic vision advances economic and national security, and the extent to which a given project is necessary for achieving that vision. Thus, the Department strongly encourages consortia to be selective in choosing projects.

5. How can CHIPS Incentives funds be used?

Funds made available under the CHIPS Incentives Program may be spent only on eligible uses, which include the costs to:

• finance the construction, expansion, or modernization of a facility, or equipment for that facility

• support site development and modernization for a facility

• support workforce development for a facility

• pay reasonable operating expenses for a facility, as determined by the Department.16

Not all of the applicant’s activities within a project may be eligible to receive program funds.

However, as described in Sections IV.G.3 and IV.H.4, the applicant must clearly describe any activities within its proposed project that may be eligible uses for CHIPS Incentives.

Certain purposes are ineligible uses for CHIPS Incentives. See Section IV.I for more details.

6. How does the application process work?

The application process includes two primary phases. In the first phase, applicants will be asked to submit a concept plan describing how their proposed project addresses core program priorities.

The Department will then invite the most promising applicants to the second phase, where they will have the opportunity to submit a full application. The Department will communicate full application submission dates to those applicants selected to advance, and may work with applicants selected to advance as they shape their concept paper into a full application.

Applicants that advance in the process will be subject to due diligence prior to award. For more information on the application process, see Section V.D.

If an applicant is applying as part of a consortium: Each member of a consortium that seeks

CHIPS Incentives for a project to construct, expand, or modernize a facility eligible for funding under this NOFO must submit a separate concept plan and, if invited to the second phase, a separate full application. Each project will be evaluated on its own merits. Consortium applicants will be required to provide details about their consortium in a separate consortium narrative. In evaluating an individual project proposed as part of a consortium, the Department will consider

16 See 15 U.S.C. § 4652(a)(4).

the strength of the consortium’s overall strategic vision and the extent to which an individual project is necessary to advance that vision. For more information, see Sections V.C. and V.D.

C. Program Priorities

The CHIPS Incentives Program seeks to further priorities relating to economic and national security, workforce, and other matters. This section provides information about the program’s priorities. Applicants should develop their applications with these priorities in mind, as they relate to various requirements and evaluative criteria that will form the basis for the

Department’s application review process. Applications that do not meet program priorities will not receive funding. The Department will not fund applications that lack sufficient scale to meaningfully contribute to the objectives outlined in this NOFO. The Department expects projects with capital investments below $20 million are unlikely to meet this standard. If a sub-

$20 million project does meet this standard, the Department generally expects other stakeholders—including chipmakers, larger suppliers, and state and local entities— make the project viable without CHIPS funding.

1. Economic and National Security Objectives

Advancing U.S. economic and national security is the principal objective of the CHIPS

Incentives Program. With respect to economic security, this NOFO contains a particular focus on incentivizing the development of vibrant, sustainable semiconductor clusters. These clusters are critical to creating a robust semiconductor ecosystem in the United States.

In addition, the Department seeks to invest in operationally secure projects employing appropriate cybersecurity practices, as well as implementing plans to promote supply chain security and risk management. Projects must be protected from internal and external risks ranging from insider threats to disaster recovery and ensure their supply chain is resilient to disruption. Moreover, projects should generally be capable of continued operations for a period of time without access to non-U.S. facilities and personnel.

a. Economic Security Objectives

The Department has laid out three objectives for its investments in semiconductor materials and manufacturing equipment facilities: (1) strengthening supply chain resilience, (2) advancing U.S.

technology leadership in semiconductor materials and manufacturing equipment, and (3) supporting vibrant U.S. fab clusters.

Through this amended NOFO, the Department is particularly focused on the third goal:

supporting vibrant U.S. fab clusters. The Department seeks applications for semiconductor material and equipment facilities that advance clusters by closing critical gaps in the U.S.

supplier landscape, for example by reducing the burdens associated with transporting critical supply chain inputs.

With respect to strengthening supply chain resilience, the Department seeks projects that address chokepoint risks flowing from geographic concentration and reduce the risks of production disruptions due to chronic shortages of critical supply chain inputs.

With respect to advancing U.S. technology leadership, the Department seeks projects that advance U.S. technology leadership by reinforcing existing supply chain strengths and/or developing new and innovative capabilities in the United States. The Department encourages major U.S. semiconductor manufacturing equipment and materials suppliers to increase their footprints in the United States, and aims to attract non-U.S. suppliers of the world’s most advanced semiconductor manufacturing equipment, materials, and subsystems to establish large-scale footprints in the United States.

Ultimately, the Department recognizes that all three objectives are self-reinforcing: supporting vibrant U.S. fab clusters, for example, can generate efficiencies and innovation that end up strengthening supply chain resilience and/or technology leadership. The Department welcomes projects that support one or more of these objectives.

b. National Security Objectives

As foundational components to U.S. defense and critical infrastructure systems, semiconductors are vital to U.S. national security. The government organizations and contractors that fulfill national security missions require stable, long-term onshore access to semiconductors, which in turn requires a robust, secure domestic semiconductor supply chain. As relevant, CPO encourages applicants to identify the national security programs and platforms the project supports, any customers in the defense industrial base, and any government points-of-contact who can validate that the project will advance national security.

The Department also acknowledges that the risk of malicious disruptions to semiconductors and their supply chains has risen in concert with increased chip complexity, process separation, and outsourcing. The evolving threat landscape, coupled with today’s digitized world, provides a large attack surface for adversaries to steal, compromise, alter, or destroy sensitive information that is critical to economic and national security. The Department seeks applicants that have made themselves resilient to these attacks, such as by establishing a strategy to protect intellectual property and by assuring the security of their product quality and supply chain to prevent tampering, counterfeiting, and other security issues. The Department will also evaluate projects based on their ability to mitigate additional operational and cybersecurity risks, including those posed by insider threats, external influence from foreign entities of concern, dependence on foreign-owned or sourced inputs or equipment, and espionage.

Supply chain security is critical to ensure safe and continued production of semiconductors. The

Department seeks projects with demonstrated resilience measures through the protection of physical infrastructure and the supplier ecosystem, and risk management strategies—such as regular supply chain mapping—to avoid supply chain exploitation or the theft of intellectual property.

The Department will also consider the national security risks of the location of any upstream or downstream steps in the semiconductor material or equipment manufacturing process.

2. Commercial Viability

Long-term commercial viability is an essential component of any successful application.

Commercially viable projects will be grounded on a sound business case providing reliable cash flows that are sufficient to maintain continuity of operations and continued investment in the facility.

Each applicant must describe the type of semiconductor material or equipment the proposed project will produce, where in the semiconductor manufacturing process the technology is used, and key semiconductor- and non-semiconductor-related end markets.17 A strong application will present a sophisticated understanding, backed by evidence, of the demand for a project’s output and other sources of existing and potential future supply. Each applicant must also identify the customers, or categories of customers, for a project’s output, and strong applications will include evidence of offtake commitments or other evidence of specific customer demand.18 The

Department encourages proposals that attract more private capital and induce larger-scale, private domestic investments. The Department also encourages purchase commitments and collaborations across the supply chain to clarify future demand, improve transparency and trust, and mitigate the risk of future supply chain shortages or oversupply.

3. Financial Strength

The CHIPS Incentives Program does not provide enough funding on its own to create the capacity needed to meet the program’s economic and national security objectives. Applicants should structure the finances of their project in a way that maximizes private-sector contributions and minimizes the need for government incentives. The Department may decline to award

CHIPS Incentives if the applicant has not demonstrated sufficient efforts to maximize the use of private-sector funds. The Department will evaluate the degree to which the applicant, through its funding request, leverages private investment, incentives provided by state and local governments, and the Investment Tax Credit (to the extent applicable) to increase scale and lower the need for CHIPS Incentives. The Department will also ask applicants to submit a financial model, which will inform a comprehensive assessment of a project’s finances.

4. Project Technical Feasibility and Readiness

Timely construction and effective operation of facilities is crucial to the overall success of the

CHIPS Incentives Program. Project technical feasibility includes the ability of the applicant to construct, equip, and operate the proposed project. To demonstrate technical feasibility, applicants will be asked to provide a construction plan, including a construction schedule and a list of key partners, contractors, and suppliers.

17 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(aa).

18 See 15 U.S.C. § 4652(a)(2)(B)(ii)(V)(bb).

Activities funded under this NOFO will be subject to various Federal, state, and local environmental and permitting requirements. The Department intends to prioritize applications that demonstrate a clear path to meeting these requirements in a timely manner.

5. Workforce Development

A strong, long-term workforce strategy is critical to achieving the economic and national security goals of the CHIPS Act. Each applicant will therefore lay out their strategy to recruit, train, hire, retain, and upskill a workforce consistent with Executive Order 14278: Preparing Americans for

High Paying Skilled Trade Jobs of the Future, and Executive Order 14173: Ending Illegal

Discrimination and Restoring Merit-Based Opportunity. All applicants must comply with all applicable Federal labor and employment laws, including but not limited to Title VII of the Civil

Rights Act of 1964, the Fair Labor Standards Act, the Occupational Safety and Health Act, and the National Labor Relations Act, which protects employees’ right to bargain collectively and engage in concerted activities for the purpose of workers’ mutual aid or protection.

To be eligible for CHIPS funding, applicants must secure “commitments from regional educational and training entities and institutions of higher education to provide workforce training, including programming for training and job placement of economically disadvantaged individuals.”19 Applicants are strongly encouraged to work with such partners to articulate their approach to meeting their facility and construction workforce needs through training and recruitment of American workers. For both their facility and construction workforce, applicants must provide a workforce needs assessment; outline evidence-informed strategies for recruitment, training, and retention; and describe their approach to ensuring job quality.

The Department strongly encourages the use of project labor agreements in connection with construction projects when those agreements are practicable and cost effective.

All laborers and mechanics employed by contractors or subcontractors on a construction project that receives financial assistance under the CHIPS Incentives Program shall be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the

Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, commonly referred to as the “Davis-Bacon Act.”

II. Federal Award Information

A. Funding Instrument

CHIPS Incentives will be provided through this NOFO, as appropriate, in a form consistent with the CHIPS Act. The final composition and structure of any financial assistance awards made under this program will be determined during the review and selection process.

19 See 15 U.S.C. § 4652(a)(2)(B)(ii)(III).

B. Funding Availability

The amounts awarded under this NOFO will depend on program priorities and the quality of applications received.

C. Award Amount

The total amount of a CHIPS award will vary by project.

D. Period of Performance

The specific period of performance will vary depending on the size and complexity of the project and the specific activities funded and will be negotiated with the applicant and reflected in the award documents. The conclusion of an award’s period of performance does not signify the end of a recipient’s obligations related to a CHIPS Incentives Award.

III. Eligibility Information

A. Eligible Applicants

1. Covered Entity Requirement

An applicant must be a “covered entity” to receive CHIPS Incentives. For purposes of this

NOFO, a “covered entity” means a nonprofit entity; a private-sector entity; a consortium of private-sector entities; or a consortium of nonprofit, public, and private-sector entities with a demonstrated ability to substantially finance, construct, expand, or modernize a facility relating to the fabrication, assembly, testing, advanced packaging, production, or research and development of semiconductors, materials used to manufacture semiconductors, or semiconductor manufacturing equipment.

With respect to consortium applications, the Department will award funds on a per-project basis to each private-sector, domestic legal entity responsible for constructing, expanding, or modernizing a facility eligible for CHIPS funding under this NOFO.20 A recipient will assume legal and financial responsibility for the CHIPS Incentives received, including any funds provided to subrecipients and contractors.

The Department may require that the parent or affiliated entities of the recipient provide commitments or guarantees for the benefit of the Federal government or to advance program priorities.

20 Multiple recipients or a nondomestic recipient may be permitted, at the sole discretion of the Department, in exceptional cases, such as in cases of applications involving more than one member of an affiliated group, i.e. a corporate parent and one or more of its subsidiaries. Such exceptions will only be granted if consistent with applicable law and where providing for multiple recipients would further program or project objectives and would not undermine the ability of the Department to evaluate an application and monitor and enforce compliance with the terms of any resulting CHIPS Incentives Award. Multiple recipients will not be permitted where the recipients are not part of the same affiliated group. After the submission of a concept plan, a submitter may seek guidance on whether a multiple recipient or nondomestic recipient option may be available for its potential application.

2. Foreign Entities of Concern and Foreign Capital

Foreign entities of concern21 are not eligible to receive CHIPS Incentives.22 In addition, the

Department will review applications for involvement of foreign entities of concern and will not approve any applications where a foreign entity of concern—through control,23 access to information, or other mechanisms—poses an undue risk to a project or U.S. national security interests. Applicants are required to provide information via the SF-328 form at the time of full application to enable an initial assessment of these issues. Additional information, beyond the scope of the SF-328 form, may be required in due diligence, to further identify and, if necessary, mitigate potential risks to national security.

CHIPS Incentives Awards will also involve requirements to enable identification and mitigation of national security risks posed by involvement of foreign entities of concern that may arise after an application is approved.

3. Cost Sharing or Matching

Cost sharing or matching funds, as governed by 2 CFR § 200.306, are not legally required for this NOFO. Each applicant must be able to demonstrate that they have sufficient resources available to complete the proposed project, when combined with the requested CHIPS

Incentives.

IV. Application and Submission Information

A. How to Access an Application Package

Application forms and instructions are available on the CHIPS Incentives Program application portal. FAQs, guides and templates are available at https://www.chips.gov.

B. Submission Dates and Times

This amendment re-opens and extends the period of acceptance of applications, which was originally open from December 1, 2023, through February 1, 2024, so that concept plans will now be accepted through November 1, 2026.

For applicants that are invited to advance to the full application phase, the CHIPS Program

Office will communicate full application submission dates to applicants individually upon notifying them of their advancement.

21 See 15 C.F.R. Part 231 22 15 U.S.C. § 4657.

23 The term “control” for this purpose is defined as any direct or indirect investment in a corporate entity that provides the investor with the means to influence important matters affecting the project. The term “means to influence important matters” includes membership or observer rights on, or the right to nominate an individual to a position on, the board of directors or equivalent governing body of the corporate entity; any involvement, other than through voting of shares, in substantive decision-making by the corporate entity; and consultation rights with respect to technology licensing to third parties.

The Department may amend this NOFO at any time. It may also close the funding opportunity with at least 60 days’ notice.

C. Confidential Information

CPO recognizes the importance of protecting confidential business information from public disclosure. CPO and the Department will follow applicable laws, including, for example, the

CHIPS Act, the Trade Secrets Act, and the Freedom of Information Act (FOIA), to protect such information.

1. Statutes Applicable to Confidential Business Information

Subject to certain exceptions, Section 4652 of the CHIPS Act provides that “any information derived from records or necessary information disclosed by a covered entity to the Secretary under this section” is exempt from disclosure under FOIA and “shall not be made public.”24

All Federal employees are also bound by the Trade Secrets Act, which makes Federal employees criminally liable for the unauthorized disclosure of “information [that] concerns or relates to the trade secrets, processes, operations, style of work, or apparatus, or to the identity, confidential statistical data, amount or source of any income, profits, losses, or expenditures of any person, firm, partnership, corporation, or association.” 25 Violations of the Trade Secrets Act may result in the loss of employment, fines, or imprisonment.

Finally, FOIA requires Federal agencies, including CPO and the Department, to disclose agency records requested by a member of the public, including information received from outside parties, unless FOIA specifically exempts the information from disclosure. Information that

“shall not be made public” under Section 4652 of the CHIPS Act “shall be exempt from disclosure under section 552(b)(3) of title 5,”26 making it exempt from disclosure under FOIA.27

In addition, FOIA exempts from disclosure information submitted by an applicant that constitutes trade secrets or is privileged or confidential commercial or financial information.28

The Department will apply these exemptions, in accordance with the law and the Department’s

FOIA regulations,29 to FOIA requests.

24 15 U.S.C. § 4652(a)(6)(G)(i). The exceptions are for information 1) relevant to any administrative or judicial action or proceeding, 2) that a covered entity has consented to be disclosed to third parties, or 3) necessary to fulfill the congressional notification requirement specified under Section 4652(a)(6)(H). “Covered entity” is defined at 15

U.S.C. § 4651(2). The Department interprets “information disclosed by a covered entity to the Secretary under this section” to include information disclosed by a covered entity as part of the application process under this NOFO.

25 18 U.S.C. § 1905.

26 15 U.S.C. § 4652(a)(6)(G)(i).

27 See 5 U.S.C. § 552(b)(3).

28 5 U.S.C. § 552(b)(4).

29 See 15 C.F.R. Part 4.

2. Instructions for Marking Confidential Business Information

To assist the Department in protecting trade secrets or privileged or confidential commercial or financial information, applicants should follow these guidelines in submitting information via a concept plan or full application.

First, the following legend should appear on the first page of any document containing trade secrets or privileged or confidential commercial or financial information:

This document contains trade secrets or commercial or financial information that is privileged or confidential and is exempt from public disclosure. Such information shall be used or disclosed only in accordance with the CHIPS Incentives Program NOFO or as otherwise authorized or required by law. The information subject to these restrictions is contained on all pages of the document except for pages [insert page number or other identification of pages that contain no restricted information.]

(End of Legend)

Second, the following legend should appear on each page of the document that contains information the applicant seeks to designate as trade secrets or privileged or confidential commercial or financial information:

Use or disclosure of information contained on this sheet is subject to the restriction on the title page of this document.

(End of Legend)

The use of any other legend may constitute grounds for removing the application from further consideration without assuming any liability for inadvertent disclosure. Each applicant must also use good faith when designating information as trade secrets or commercial or financial information that is privileged or confidential.

3. Use of Information

Any person or entity submitting information under this NOFO acknowledges and understands that information and data contained in or submitted in connection with statements of interest30, concept plans, full applications, or due diligence under this NOFO (together, “applicant information and data”) may be accessed and used by Federal employees and their contractors for the purposes of this NOFO and carrying out the government’s responsibilities in connection with the CHIPS Incentives Program, or as otherwise required by law. By submitting applicant information and data, the applicant, potential applicant, or an entity submitting a concept plan consents to the disclosure of such applicant information and data to consultants and contractors for these purposes, consistent with Federal law.

30 Applicants that have not already submitted a statement of interest to the Department are not required to do so before submitting a concept plan under this NOFO, but may still do so if desired.

The Department may publish information concerning the award of incentives at stages through the review, selection, and award process. The Department may inform and, to the extent required by law, seek consent from applicants of any such disclosures. In addition, as will be set forth in the terms and conditions of a CHIPS Incentives Award, successful applicants will be expected to support program and project reviews, audits, and program evaluation activities, including by submitting required financial and performance information and data in an accurate and timely manner, making available documents and other records related to the award project upon request, and by cooperating with Department and external program evaluators, including, for non-program evaluation activities, the Office of the Inspector General. Certain post-award progress reporting may also be made public.

The Department may also publish aggregated information from statements of interest, concept plans, and applications.

D. False Statements

It is a crime to knowingly make false statements to a Federal agency. Misrepresentation of material facts may be the basis for denial of an application. Penalties upon conviction may include fine and imprisonment. For details, please refer to 18 U.S.C. § 1001.

E. Application Requirements

Application forms and instructions are available on the CHIPS Incentives Program application portal. FAQs, guides, and templates are available at https://www.chips.gov. Applicants will provide information to the CHIPS Incentives Program application portal via web forms, populating required templates, and uploading narrative documents and other required or supporting attachments. The following sections describe the information that will be required as part of the submissions for concept plans and full applications.

All application materials must be submitted electronically via the CHIPS Incentives Program application portal. In addition to the requirements set forth below, during the application review process the Department may request additional records and information necessary for fulfilling the purposes of this NOFO.

F. Requirements for Attachments Submitted through the CHIPS Incentives Program

Application Portal

Requirements for attachments submitted through the CHIPS Incentives Program Application

Portal can be found at chips.gov.

G. Content and Form of Concept Plan

The concept plan allows the Department to evaluate proposed projects and invite those most likely to receive an award to advance to the full application phase.

Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or modernize a facility eligible for funding under this NOFO must submit an individual concept plan. Consortium applicants will be required to provide details about their consortium in a separate consortium narrative.

Concept plans must be submitted through https://applications.chips.gov.

The concept plan includes information input via web forms on the CHIPS Incentives Program application portal and the following information:

1. Cover Page

The cover page will be input directly via a web form on the CHIPS Incentives Program application portal.

2. Consortium Narrative (if applicable)

Consortium members must also upload a separate consortium narrative of no more than 5 pages.

The consortium narrative must include the following information, and each member is responsible for ensuring consistency across all related applications:

• The individual entities that are members or proposed members of the consortium and the roles of each entity31

• A narrative description of the consortium’s overall strategic vision; how that vision aligns with the Department’s economic and national security objectives; and the relevance of each proposed project to that vision o Include an explanation of why the proposed projects are necessary to advance the consortium’s vision, and why CHIPS funding is necessary to incentivize the relevant investment

• The structure of the consortium, including how members intend to coordinate and/or collaborate with one another

3. Concept Plan Details

Each applicant must submit a project plan of no more than 15 pages that describes the project for which CHIPS Incentives funds are being requested. Attachments such as the Project Sources and

Uses of Funds spreadsheet are not included in this page limit.

The project plan must contain the following information:

• Description of Project: A description of the construction, expansion, or modernization activities proposed, including a description of the facility location and existing or required infrastructure. This description should include the products that the facility produces or will produce and their end market application, along with information on the scale, size, and capacity of production.

31 The Department will not require consortia to be fully formed at the concept plan phase. Consortium applicants should simply list the members or proposed members that are part of the consortium’s current plan. If a consortium wishes to add additional member(s) after they have submitted their concept plan, they should indicate any additions in the full application consortium narrative.

• Applicant Profile: A brief description of the applicant, including identification of its headquarters, primary officers, ownership (publicly traded or privately held, including main shareholders), main business lines, and main countries of operation. For applicants that are a subsidiary of another entity, this information should be provided for the ultimate corporate parent as well.

• CHIPS Incentives Justification: A summary narrative explaining how the CHIPS

Incentives requested will incentivize the applicant to make investments in the facility and equipment in the United States that would not occur in the absence of the incentives. If relevant, include other ways that the requested incentives would change the nature, scale, or speed of the investment.

• Economic and National Security: A narrative description of how the proposed project will further the economic and national security objectives of the United States, as described in Section I.C.1. Applicants should describe, in particular, how the proposed project will help strengthen supply chain resilience, advance U.S. technology leadership, and/or support vibrant U.S. fab clusters.

• Commercial Viability: A narrative description of the demand drivers for the output of the facility with as much specificity as is available on end markets and customer demand.

Evidence of customer demand could include key off-take agreements, letters of reference or intent, or a list of top customers for each major product and associated volumes (any such items should be included in an appendix). The narrative should also explain how the project will reach sufficient scale to be commercially viable over the long term.

• Project Feasibility and Readiness: A narrative description explaining why the proposed project is technically feasible, including a notional construction schedule; an explanation of the experience and qualifications of key management personnel, including experience with projects of similar size and scope; a list of any comparable facilities previously commissioned by the applicant or its parent companies; and any evidence that the applicant has the ability to effectively manage the environmental review process.

• Availability of Funds: Provide the information listed below about capital investment and capital sources via the Project Sources and Uses of Funds spreadsheet template available on the CHIPS Incentives Program application portal. In addition, provide a narrative that details specific, credible evidence of the availability of the listed sources of funds. That evidence could include, for example, company financials demonstrating the availability of cash; commitment letters; or other approaches to accessing the required funding.

o Capital Investment: The costs required to complete the construction, expansion, or modernization of the project and initiate operation, broken down by category such as land, construction (e.g., labor and material), equipment, infrastructure improvements (e.g., utility plants, access to infrastructure, or wastewater treatment plants), and administrative expenses directly attributable to the construction, expansion, or modernization (e.g., legal, engineering, and permitting fees).

o Project Capital Sources: Total project capital sources should be greater than the capital investment costs described above (in the full application, the Department will expect total project capital sources to equal the sum of capital investment, operating losses and other cash outflows until cash flow breakeven, and workforce development costs), and should include, for example, CHIPS

Incentives; equity from the applicant, its parent, and any third parties; debt financing from the applicant or corporate parents; state and local government incentives; the Investment Tax Credit; and any other sources of funds, such as customer pre-payments.

H. Content and Form of Full Application Submission

This section provides instructions and details for submission of full applications to the CHIPS

Incentives Program. Based on the review of concept plans, the Department will invite selected applicants to submit a full application. Applicants not invited to submit a full application will be notified that they have been eliminated from consideration in this competition.

The full application includes a series of sections, each described below. Page limits are provided where applicable. Sections should be accompanied by relevant attachments that substantiate information in the narrative section, which do not count toward the page limit. All application materials must be submitted through the CHIPS Incentives Program application portal.

Each member of a consortium that seeks CHIPS Incentives for a project to construct, expand, or modernize a facility eligible for funding under this NOFO must submit a separate application.

Consortium applicants will be required to provide details about their consortium in a separate consortium narrative.

Applicants should make efforts to complete the process of registering for the System for Award

Management (SAM.gov), including obtaining a Unique Entity Identifier (UEI), prior to submitting a full application. For consortium applicants, SAM.gov registrations are required for all members seeking CHIPS Incentives for the construction, expansion, or modernization of a facility eligible for funding under this NOFO.

Applicants are strongly encouraged to begin the process of registering for SAM.gov as early as possible. While this process ordinarily takes between three days and two weeks, in some circumstances it can take six or more months to complete due to information verification requirements. The Department is unable to issue a CHIPS Incentives Award to an entity that lacks an active SAM.gov registration.

A summary table of the application structure is provided below:

1. Cover Page

2. Consortium Narrative (if applicable)

3. Covered Incentive

4. Description of Project

5. Applicant Profile

6. Alignment with Economic and National…