CHIPS Incentives — Semiconductor Materials & Equipment Facilities

CHIPS Incentives: Semiconductor Materials & Equipment NOFO

Invests in semiconductor materials and equipment manufacturers expanding domestic supply chain capacity.

The CHIPS Incentives Notice of Funding Opportunity for Facilities for Semiconductor Materials and Manufacturing Equipment is a live channel administered by the CHIPS Program Office at the U.S. Department of Commerce. Originally released September 30, 2023, the NOFO was reopened and amended on October 16, 2025 to reflect current program priorities. It targets upstream semiconductor supply chain participants — specifically companies constructing, expanding, or modernizing commercial facilities that produce semiconductor materials or manufacturing equipment used by U.S. chip fabricators. Concept plans are accepted on a rolling basis through November 1, 2026, after which shortlisted applicants are invited to submit a full application in a two-phase review process.

Funding instruments authorized under the CHIPS Act include direct grants, federal loans, and loan guarantees, meaning applicants may receive non-grant financing under the same NOFO. Award amounts are not publicly disclosed on the program landing page; they are negotiated based on project scope and domestic supply chain impact. Eligible applicants include for-profit companies, non-profit organizations, and universities engaged in commercial semiconductor materials or equipment production. The NOFO does not govern the separate 25 percent CHIPS Investment Tax Credit administered by the U.S. Treasury and IRS, which may be claimed independently.

The two-phase structure — concept plan followed by an invitation-only full application — gives the CHIPS Program Office a screening mechanism to assess national security and supply chain alignment before committing to detailed review. Applicants should prepare a concept plan that quantifies the production capacity, facility location, domestic supply chain benefit, and anticipated capital expenditure. The October 2025 reopening amid broader congressional debates over CHIPS Act implementation signals continued executive branch support for upstream supply chain resilience investments. Full eligibility requirements and evaluation criteria are contained in the NOFO attachment document available at the NIST CHIPS website.