US opens applications for $39B in funding for chip manufacturing

The US has started receiving applications for $39 billion in funding for chip manufacturing, the Commerce Department announced Tuesday.

"The first funding opportunity seeks applications for projects to construct, expand, or modernize commercial facilities for the production of leading-edge, current-generation, and mature-node semiconductors," it said in a statement.

The department said it will evaluate applications based on the extent of the applicants' commitments.

Applicants asking for over $150 million in funding must provide their facility and workers with access to affordable, accessible, reliable, and high-quality childcare. In addition, applicants are encouraged to use labor agreements for construction projects, it added.

"The CHIPS and Science Act presents a historic opportunity to unleash the next generation of American innovation, protect our national security, and preserve our global economic competitiveness," said Commerce Secretary Gina Raimondo said in a statement.

"When we have finished implementing CHIPS for America, we will be the premier destination in the world where new leading-edge chip architectures can be invented in our research labs, designed for every end-use application, manufactured at scale and packaged with the most advanced technologies," she added.

Raimondo announced last week that the US plans to build at least two new large-scale semiconductor fabrication plants by 2030 known as logic fabs, which will use funds from President Joe Biden's $52 billion CHIPS and Science Act that was signed into law in August.