CHIPS for America: Funding opportunities continue as program priorities evolve

The United States Department of Commerce’s CHIPS for America program, established under the bipartisan CHIPS and Science Act of 2022, administers approximately $50 billion to support domestic manufacturing capacity, advanced research, and supply chain resilience critical to economic and national security. As such, it plays a central role in the federal government’s strategy for developing and investing in semiconductor manufacturing and research.

While the statutory goals of the program remain unchanged, ongoing shifts in implementation and funding strategy have altered how – and how quickly – eligible entities can access CHIPS funding. These changes present new opportunities for industry, alongside heightened expectations.

This alert discusses the program, statutory goals, and funding opportunities.

Program structure and administration

CHIPS for America is implemented primarily through two Department of Commerce offices:

• The CHIPS Program Office (CPO), also known as the CHIPS Incentives Office, manages $39 billion for manufacturing incentives to attract large-scale, long-term investments in advanced technologies, in addition to managing the expansion of manufacturing capacity for semiconductors.


• The CHIPS Research and Development (R&D) Office (CRDO) manages $11 billion to conduct research and prototyping of advanced semiconductor technologies; strengthen semiconductor advanced packaging, assembly, and test; and enable advances in measurement science, standards, material characterization, instrumentation, testing, and manufacturing.

Together, these programs deploy funding across the semiconductor value chain from early stage R&D through large scale commercial manufacturing.

Direct awards and accelerated deal making

Earlier implementation models of CHIPS for America emphasized public–private partnerships, shared research infrastructure, and ecosystem collaboration, with a focus on long‑term, sustainable impact across the semiconductor ecosystem.

In the last year, funding methodology has shifted toward increased direct funding awards to individual companies, including those operating in semiconductor‑adjacent sectors such as artificial intelligence (AI), quantum technologies, and biotechnology, as well as a more targeted focus on onshoring critical minerals used in semiconductor manufacturing. This approach prioritizes speed, near term economic impact, and visible returns on public investment, often accompanied by more robust financial and performance expectations.

As a result, some previously announced or negotiated awards have been restructured or canceled. Those funds have since been returned to the program and become available for subsequent funding opportunities.

Current funding opportunities

According to Department of Commerce guidance, multiple CHIPS for America funding pathways are active and accepting proposals.

CPO

The “Facilities for Semiconductor Materials and Manufacturing” funding opportunity issued by CPO administers incentives for the construction, expansion, and modernization of semiconductor manufacturing, materials, and equipment facilities in the US. Specifically, this funding opportunity seeks:

• 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 manufacturing equipment.

The application process for this notice of funding opportunity (NOFO) includes two primary phases: a concept plan describing how their proposed project addresses core program priorities and, if invited to proceed, a full application for consideration.

This funding opportunity was first published in September 2023, reopened and amended in October 2025, and is accepting concept papers until November 1, 2026. Funding amounts will vary by project.

CRDO

The “Broad Agency Announcement (BAA)” issued by CRDO seeks proposals from eligible applicants for research, prototyping, and commercial solutions that advance microelectronics technology in the US. Proposals will accelerate the pace of commercialization to enable technology dominance in the industries of the future, in areas including:

• Semiconductors, including research and prototyping of advanced semiconductor technologies and growing the domestic semiconductor workforce,


• Application of AI for advanced microelectronics research and development,


• Application of quantum technology for advanced microelectronics research and development,


• Application of biotechnology and biomanufacturing technology for advanced microelectronics research and development,


• Commercialization of innovations, and


• Standards development.

The expansion of the scope of this program to research related to semiconductors provides meaningful opportunities to industries in adjacent fields. For example, life sciences companies and technologies may be eligible for CRDO funding where there is a credible microelectronics nexus.

The application process for this BAA includes two primary phases: a white paper describing how their proposed project addresses key research and development activities and, if invited to proceed, the submission of a more fulsome pre-negotiation package.

This funding opportunity was first published in September 2025 and is accepting concept papers on a rolling basis until September 30, 2029; however, it is anticipated that this funding opportunity will be amended to close on an earlier date. Funding amounts will vary by project but must be at least $10 million.

Benefit to the nation requirement

Proposals must benefit the nation and advance both national and economic security in accordance with statutory requirements. For both funding opportunities, it is also understood that applicants may be required to issue to the Department of Commerce equity, warrants, or other such instruments to ensure a financial return on investment to the government as a condition of receiving an award.

Companies pursuing CHIPS for America funding may expect compressed timelines for application review and award decisions, as well as more intensive negotiations over financial structure, milestones, and compliance obligations. This accelerated pace increases the importance of careful preparation and strategic alignment. Applicants should be ready to demonstrate technical ability, financial resilience, and credible execution plans. Misalignment between corporate strategy and federal expectations could delay awards, complicate negotiations, or create downstream compliance risk after funding is received.

These opportunities are designed to move funding efficiently while advancing US technological leadership. However, program materials express that speed does not reduce the need for rigor, as technical merit, financial diligence, and execution capability remain key criteria.

Learn more

DLA Piper advises clients across the semiconductor, advanced manufacturing, and emerging technology sectors on the full lifecycle of CHIPS for America engagement.

With experience at the intersection of federal policy, national security, and advanced technology, DLA Piper helps clients navigate complexity, manage risk, and access federal investment opportunities.

For more information about CHIPS for America funding opportunities or to discuss how these developments may affect your business, please contact the author.