The Semiconductor Industry Association (SIA) has expressed approval for the initial semiconductor manufacturing incentives introduced by the U.S. Department of Commerce, as part of the CHIPS and Science Act. The association indicated that the legislation has already spurred investment and anticipates further projects to commence soon.
John Neuffer, President and CEO at Semiconductor Industry Association, stated, "[The] announcement represents an important milestone on the path to fulfilling the tremendous promise of the CHIPS and Science Act and reinforcing America’s national security, critical supply chains, and the economy". He continued, "We applaud Secretary Raimondo and the CHIPS Program Office team for working diligently to begin getting CHIPS incentives out the door. We look forward to additional projects being funded and stand ready to continue working with Commerce Department leaders to ensure the CHIPS and Science Act reinvigorates U.S. semiconductor production and innovation for years to come."
According to a press release from the Commerce Department on December 11, it finalized a non-binding preliminary memorandum of terms (PMT) with BAE Systems Electronic Systems. This PMT provides approximately $35 million in federal incentives under the CHIPS and Science Act. The legislation, enacted in 2022, will enable BAE Systems to upgrade its mature-node production facility in Nashua, N.H. It is anticipated that modernizing this facility will significantly boost chip production needed for crucial defense programs such as the F-35 fighter jet program.
The same press release clarified that a PMT is agreed upon only after satisfactory completion of a full application's merit review. It outlines key terms for a CHIPS incentives award. To date, over 550 statements of interest have been received by the department along with nearly 150 pre-applications, full applications, and concept plans for CHIPS incentives. However, this is reportedly the first PMT for CHIPS incentives.
The Commerce Department emphasized in its press release that signing this PMT with BAE Systems "marks the beginning of the next phase of implementation of the CHIPS and Science Act."
