What is the CHIPS Act?

The CHIPS Act, or the Creating Helpful Incentives to Produce Semiconductors for America’s Future Act, is a pivotal piece of legislation in the United States aimed at bolstering domestic semiconductor manufacturing. Introduced in 2021, it represents a bipartisan effort to address the growing global semiconductor shortage and enhance national security.

This act provides substantial financial incentives and investment in semiconductor research, development, and production capabilities within the United States. It allocates funds to support research and development programs, incentivizes semiconductor manufacturing through grants, and creates a framework for partnerships between the government and private sector.

The CHIPS Act recognizes the critical role of semiconductors in modern technology, affecting industries from automotive to healthcare. By investing in domestic semiconductor production, the United States aims to reduce its reliance on foreign suppliers, particularly in Asia. This not only safeguards the supply chain but also enhances national security by ensuring access to vital components for defense systems.

Overall, the CHIPS Act represents a significant step toward strengthening the semiconductor industry in the United States, promoting innovation, and securing the nation’s technological leadership in an increasingly competitive global landscape.

How is Vitrek Supporting the CHIP Act?

Vitrek is a US-based company. We design, build, calibrate, repair, and support all our products right here in North America. Our parts have full traceability, and we only use authorized components in all our products.

Vitrek has been serving the Semiconductor market for decades and our reputation for quality and reliability is well known in the industry. To this point, we look forward to serving all Semiconductor manufacturers that are looking for US-based suppliers that can meet their most demanding capability needs. We look forward to accelerating their buildout efforts around Semiconductor Research Centers and Manufacturing plants in the United States.

About CHIPS for America

Semiconductors, or chips, are tiny electronic devices that are integral to America’s economic and national security. These devices power tools as simple as a light switch and as complex as a fighter jet or a smartphone. Semiconductors power our consumer electronics, automobiles, data centers, critical infrastructure, and virtually all military systems. They are also essential building blocks of the technologies that will shape our future, including artificial intelligence, biotechnology, and clean energy.

While the United States remains a global leader in semiconductor design and research and development, it has fallen behind in manufacturing and now accounts for only about 10 percent of global commercial production. Today, none of the most advanced logic and memory chips—the chips that power PCs, smartphones, and supercomputers—are manufactured at commercial scale in the United States. In addition, many elements of the semiconductor supply chain are geographically concentrated, leaving them vulnerable to disruption and endangering the global economy and U.S. national security.

That’s why President Biden signed the bipartisan CHIPS and Science Act of 2022 into law. The law provides the Department of Commerce with $50 billion for a suite of programs to strengthen and revitalize the U.S. position in semiconductor research, development, and manufacturing—while also investing in American workers. CHIPS for America encompasses two offices responsible for implementing the law: the CHIPS Research and Development Office is investing $11 billion into developing a robust domestic R&D ecosystem, while the CHIPS Program Office is dedicating $39 billion to provide incentives for investment in facilities and equipment in the United States.

The U.S. Department of Commerce’s CHIPS Program Office’s first funding opportunity seeks applications for projects for the construction, expansion, or modernization of commercial facilities for the fabrication of leading-edge, current-generation, and mature-node semiconductors. Through that funding opportunity, the CHIPS Program Office will soon also be accepting applications for projects for the construction, expansion, or modernization of semiconductor materials and manufacturing equipment facilities for which the capital investment equals or exceeds $300 million.

Later in 2023, the CHIPS Program Office will release a dedicated funding opportunity for semiconductor materials and manufacturing equipment facilities with capital investments below $300 million, as well as a funding opportunity for R&D facilities. These investments will be key to restoring U.S. leadership in semiconductor manufacturing, supporting good-paying jobs across the semiconductor supply chain, and advancing U.S. economic and national security.