Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act - H.R.7178 / S.3933

Overview
Purpose
"A bill to restore American leadership in semiconductor manufacturing by increasing federal incentives in order to enable advanced research and development, secure the supply chain, and ensure long-term national security and economic competitiveness."
Primary Sponsors
Reps. Michael McCaul (R-TX) and Doris Matsui (D-CA) / Sens. John Cornyn (R-TX) and Mark Warner (D-VA)
Final outcome

Modified version of H.R.7178 and S.3933 included in the National Defense Authorization Act for Fiscal Year 2021

Summary of Selected Provisions
  • Authorizes funding for semiconductor R&D, including $3 billion for the National Science Foundation, $2 billion for the Department of Energy, and $2 billion for the Defense Advanced Research Projects Agency’s Electronics Resurgence Initiative
  • Creates a multi-agency National Semiconductor Technology Center that would conduct research and prototyping of advanced semiconductors in partnership with the private sector, with a recommended budget of $3 billion over ten years
  • Establishes an Advanced Packaging National Manufacturing Institute under the Department of Commerce with a recommended budget of $5 billion over five years and creates a semiconductor program at National Institute of Standards and Technology that would support a new Manufacturing USA institute
  • Creates a $10 billion trust fund to match state and local incentives for investments in semiconductor manufacturing facilities
  • Provides tax credits for qualified semiconductor equipment or manufacturing facility expenditures through 2027
Actions
Actions on the House bill
Bill introduced
06/11/2020
Actions on the Senate bill
Bill introduced
06/10/2020
Status update

Modified version of H.R.7178 and S.3933 included in the National Defense Authorization Act for Fiscal Year 2021

Relevant FYI Bulletins

Concerned about the eroding U.S. share of the global microelectronics market, last year Congress fast-tracked legislation focused on bolstering domestic semiconductor R&D and manufacturing. Chip companies are now pressing the Biden administration and Congress to robustly fund the initiatives authorized by the legislation.

The House and Senate versions of the fiscal year 2021 National Defense Authorization Act propose numerous provisions aimed at increasing U.S. competitiveness in commercial technologies that have important national security applications, including microelectronics, artificial intelligence, 5G telecommunications, and advanced nuclear reactors.

A bipartisan group of lawmakers recently introduced legislation that would channel billions of dollars into manufacturing incentives and new R&D streams to bolster U.S. semiconductor manufacturing in the face of increasing international competition.