DATA ON DATA: President Biden Signs Executive Order to Implement CHIPS and Science Act of 2022

EO Establishes CHIPS Implementation Steering Council and Implementation Priorities;
Department of Commerce launches

Today, President Biden signed an Executive Order to implement semiconductor funding in the bipartisan CHIPS and Science Act of 2022. This legislation will lower commodity costs, create high-paying manufacturing jobs across the country, and ensure that we make more critical technology at home. This law builds on more than a year of work by the Biden-Harris Administration to respond to acute semiconductor shortages and build more resilient semiconductor supply chains. The historic funding and incentives in the CHIPS Act will help rebuild our supply chains, manufacturing and infrastructure here at home, along with essential investments from the Bipartisan Infrastructure Act and the Inflation Reduction Act.

This Executive Order reflects the Biden-Harris Administration’s commitment to rapidly increase semiconductor production, strengthen research and design leadership, and grow a diverse semiconductor workforce to give the nation a competitive advantage on the world stage.

Additionally, to ensure transparent and effective communication about CHIPS Act programs, the Commerce Department launched, a central resource for stakeholders and stakeholders for $50 billion in manufacturing and research and development funds. available through the Department of Commerce.

CHIPS Implementation Steering Council

To coordinate the effective implementation of the CHIPS Act across the administration, the Executive Order establishes an interagency CHIPS Implementation Steering Council. The Steering Council will be co-chaired by National Economic Director Brian Deese, National Security Advisor Jake Sullivan, and Office of Science and Technology Policy Acting Director Alondra Nelson. Other members of the Governing Council will include:

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

CHIPS Act Implementation Priorities
The Executive Order establishes six key priorities to guide implementation across the federal government:

  • Protect taxpayer dollars. The CHIPS program will include rigorous application review along with strong compliance and accountability requirements to ensure that taxpayer funds are protected and spent wisely.
  • Meet economic and national security needs. The CHIPS program must address economic and national security risks by building domestic capabilities that reduce U.S. reliance on vulnerable or overly concentrated foreign manufacturing for advanced and mature microelectronics, and by increasing the productivity and economic competitiveness of United States. The long-term economic and national security of the US requires a stable and competitive domestic industry.
  • Ensuring long-term leadership in the sector. The CHIPS program will create a dynamic and collaborative network for semiconductor research and innovation to enable long-term US leadership in the industries of the future. The program will support a variety of technologies and applications across multiple stages of product and process development.
  • Strengthening and expansion of regional clusters of production and innovation. Long-term competitiveness requires large economies of scale and investment throughout the supply chain. Regional clusters containing manufacturing facilities, suppliers, basic and translational research, and workforce programs, along with supporting infrastructure, will be the foundation for a competitive industry. The CHIPS program will facilitate the expansion, creation and coordination of semiconductor manufacturing and innovation clusters that benefit multiple companies.
  • It catalyzes private sector investment. A successful CHIPS program will respond to market signals, fill market gaps and reduce investment risk to attract significant private capital. The government’s role in the CHIPS program is to shift financial incentives to maximize large-scale private investment in manufacturing, advanced technology, and workers. The CHIPS program will encourage new ecosystem partnerships that reduce risk, build on US strengths and facilitate such investments.
  • Generate benefits for a wide range of stakeholders and communities. A successful CHIPS program will create benefits for startups, workers, socially and economically disadvantaged businesses (SEDIs), including minority-owned, veteran-owned, and women-owned and rural businesses, universities and colleges, and state and local economies. for supporting semiconductor companies. The CHIPS program will encourage connections with underserved regions and populations to attract new participants to the semiconductor ecosystem.

Today, the Department of Commerce launched, which will be an essential channel through which the Department communicates with the public about CHIPS Program initiatives. The Department of Commerce is committed to disbursing the funds as quickly as possible, while also allowing the necessary time to perform due diligence. will be a central source for all information related to the implementation of the CHIPS Act and Science and will provide information about the Department’s priorities, funding opportunities, timelines, requirements and more as information becomes available. .


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