President Biden issues an executive order to put the CHIPS and Science Act of 2022 into effect.

CHIPS and Science Act 2022 Implementation Steering Council and Implementation Establishment by EO

Launch of by the Department of Commerce

In order to implement the semiconductor financing in the bipartisan CHIPS and Science Act of 2022, President Biden signed an Executive Order today. With the passage of this law, prices will drop, there will be an increase in well-paying manufacturing jobs across the nation, and more vital technology will be produced domestically. The Biden-Harris Administration has been working for more than a year to address severe semiconductor shortages and strengthen semiconductor supply chains. This bill expands on that work. Along with significant investments from the Bipartisan Infrastructure Law and Inflation Reduction Act, the CHIPS Act’s historic financing and incentives will aid in the domestic reconstruction of our supply chains, industry, and infrastructure.

With the goal of giving the United States a competitive edge abroad, the Biden-Harris Administration is committed to rapidly increasing semiconductor production, strengthening research and design leadership, and expanding a diverse semiconductor workforce. This commitment is reflected in this Executive Order.

Additionally, the Department of Commerce launched, a central resource for stakeholders and interested parties on the $50 billion in manufacturing and research and development funds available through the Department of Commerce, to ensure open and efficient communication about CHIPS Act program.

Council for the Implementation of CHIPS

The Executive Order creates an interagency CHIPS Implementation Steering Council to coordinate the administration’s efficient implementation of the CHIPS Act. National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Acting Director of the Office of Science and Technology Policy Alondra Nelson will serve as co-chairs of the steering council. The following people will also be on the Steering Council:

  • Secretary Antony Blinken of the Department of State
  • Secretary of the Treasury Janet Yellen
  • Secretary of the Department of Defense Lloyd Austin
  • Gina Raimondo, Secretary of the Department of Commerce
  • Secretary Marty Walsh of the Department of Labor
  • Jennifer Granholm is the Secretary of Energy.
  • Director of the White House Office of Management and Budget Shalanda Young
  • Isabel Guzman is the Small Business Administration’s administrator.
  • Director Avril Haines of the Office of the Director of National Intelligence
  • Director of the White House Domestic Policy Council Susan Rice
  • Cecilia Rouse is the head of the White House Council of Economic Advisers.
  • Chris Inglis, director of the White House Office of the National Cyber Director
  • Sethuraman Panchanathan is the director of the National Science Foundation.

Priorities for Implementing the CHIPS Act

Six major priorities are established by the Executive Order to direct implementation across the federal government:

Keep public money safe. To guarantee that public monies are safeguarded and sensibly used, the CHIPS program will entail a rigorous evaluation of applicants in addition to strict compliance and accountability requirements.

Satiate your country’s security and economic demands. By developing domestic capacity that lessens American reliance on weak or excessively concentrated foreign production for both cutting-edge and mature microelectronics, and by raising American economic productivity and competitiveness, the CHIPS program must address economic and national security risks. A robust, competitive domestic industry is necessary for the long-term economic and national security of the United States.

Ensure long-term dominance in the industry. The CHIPS program will create a vibrant, cooperative network for semiconductor innovation and research to support long-term U.S. leadership in those sectors. A variety of technologies and applications will be supported by the initiative at various phases of the development of products and processes.

Bolster and broaden local innovation and manufacturing clusters. Long-term competitiveness demands significant supply chain investments and economies of scale. A competitive industry will be built around regional clusters that include production facilities, suppliers, basic and translational research, workforce training, and supporting infrastructure. The CHIPS program will make it easier for semiconductor manufacturing and innovation clusters to grow, form, and work together.

Encourage investment in the private sector. In order to draw considerable amounts of private capital, a successful CHIPS program will react to market signals, close market gaps, and reduce investment risk. The government’s involvement in the CHIPS initiative is to restructure financial incentives to maximize significant private investment in manufacturing, ground-breaking technology, and labor. The CHIPS program will support new ecosystem alliances that lower risk, capitalize on American strengths, and enable such investments.

Produce advantages for a variety of stakeholders and communities. In addition to helping semiconductor companies, a successful CHIPS program will also benefit new businesses, employees, SEDI enterprises (such as minority-, veteran-, and women-owned businesses), rural businesses, universities, and colleges, as well as state and local economies. The CHIPS program will promote connections with underprivileged communities and people in an effort to bring in new players to the semiconductor ecosystem.

The Department of Commerce today launched, which will serve as a crucial medium for communicating with the general public regarding CHIPS Program objectives. The Department of Commerce is dedicated to allocating funds as quickly as possible while still allowing enough time for critical due diligence to be done. As information becomes available, will serve as a comprehensive repository for all data pertaining to the execution of the CHIPS and Science Act, providing details on Departmental priorities, funding possibilities, deadlines, requirements, and more.

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