How the 2022 Chips Act Can Pay for Cleanrooms

November 30, 2022

interior class 100 cleanroom, fab worker holding silicon wafer

Figure 1. Semiconductor Cleanroom

The 2022 CHIPS act was officially passed by the US government in 2022. The semiconductor manufacturing capacity located in the U.S. global share decreased from 1990 at 37% to 2021 at 12%. The 2021 automotive, appliance and other industry chip shortages due to the COVID-19 shutdown revealed the United States' huge reliance on possible “non-friendly” supplier countries.

The CHIPS Act spends an estimated $280 billion over a span of ten years. $200 billion for scientific R&D and commercialization, $53 billion for semiconductor manufacturing, R&D, and workforce development, $24 billion for 25% investment tax credits for chip production, and $3 billion for technology and wireless supply chains. Congress wants US companies to build cleanrooms in the USA for semiconductor manufacturing instead of outsourcing to cleanrooms in foreign countries. We are also seeing foreign semiconductor manufacturers planning new USA based cleanrooms to get US government funding.

Who can apply for funding:

Chip Manufacturer:

The 2022 CHIPS Act makes $39 billion available over 5 years to fund domestic manufacturing, including $19 billion immediately for the fiscal year of 2022. Manufacturer's must be "a private entity, a consortium of private entities, or a consortium of public and private entities with a demonstrated ability to substantially finance, construct, expand, or modernize a facility relating to fabrication, assembly, testing, advanced packaging, or research and development of semiconductors." Facility equals – modular cleanroom! These entities are also eligible for the 25% investment tax credit.

Upstream Supplier to Chip Manufacturers:

The CHIPS Act also expands eligibility to upstream suppliers to chip manufacturers making $39 billion available in manufacturing funding. This eligibility includes companies that supply "materials used to manufacture semiconductors, or semiconductor manufacturing equipment." The facilities include modular cleanrooms. These entities are also eligible for a 25% investment tax credit.

Universities R&D:

For R&D Universities, $2 billion is available for a CHIPS for America Defense Fund and $11 billion for R&D including with academia. The Defense Fund is a national network for onshore, university-based prototyping, lab-to-fab transition of semiconductor technologies—including Department of Defense-unique applications — and semiconductor workforce training. R&D includes university modular cleanrooms.

Property American Cleanroom Systems 2022

The author Anthony Chien has worked at American Cleanroom Systems for the past 10 years. He has more than 40 years of cleanroom experience. Anthony has a BS and MS in Electrical Engineering specializing in semiconductor manufacturing from the University of Illinois. American Cleanroom Systems is a design-build modular cleanroom manufacturer based in Rancho Santa Margarita CA. American Cleanroom Systems is your expert in ISO-5 thru ISO-8 (class 100 to class 100k) modular cleanrooms for pharmaceutical cleanrooms, medical device cleanrooms, and industrial cleanrooms.