CHIPS and Science Act Funding Deals Continue as Finalization Deadline Looms

Washington D.C - As President-elect Donald Trump prepares to take office on January 20, the future of funding under the CHIPS and Science Act remains uncertain due to his criticism of the law.

However, in a recent flurry of activity, the Biden administration has finalized investments totaling $29.3 million, and multiple preliminary deals are awaiting finalization before inauguration day.

The Commerce Department announced the first major award under the law in November, with Taiwan-based TSMC Arizona Corporation receiving up to $6.6 billion in direct funding. This will enable TSMC to build state-of-the-art facilities in Arizona and create tens of thousands of jobs by the end of the decade.

Other notable winners include GlobalFoundries, which received a $1.5 billion award to expand semiconductor production in New York and Vermont; Intel Corp., which got $7.865 billion; and BAE Systems Electronic Systems, which scored up to $35 million.

"These finalized awards demonstrate the President's investment in strengthening America’s domestic semiconductor supply chain resilience," said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie Locascio.

The announcement follows a late flurry of activity in the fourth quarter, with multiple deals inked by the end of December. The funding announcements come as part of President Biden's CHIPS and Science Act signed into law in August 2022, offering up to $52 billion in incentives for semiconductor manufacturers to establish new operations in the United States.

In addition to finalized investments, several preliminary deals have been announced under the CHIPS and Science Act. These include agreements with Samsung Electronics worth up to $4.745 billion and Texas Instruments worth up to $1.61 billion.

Some of these proposed investments are awaiting finalization before Inauguration Day. Companies including Bosch and SkyWater Technology Foundry Inc., may get a boost from additional funding under the CHIPS act in the new year, if negotiations proceed.

As The Biden administration continues to fill out its funding deals before moving into 2025, it remains to be seen whether many of these agreements will be finalized in time for President Trump's inauguration.