United States President Joseph R. Biden Jr. on Thursday signed an Executive Order to implement the semiconductor funding in the bipartisan CHIPS and Science Act of 2022.
The White House said that the legislation will lower the costs of goods, create high paying manufacturing jobs around the country, and ensure that the United States makes more critical technologies at home.
It added that the new law “builds on more than a year of work from the Biden-Harris Administration to respond to acute semiconductor shortages and build more resilient semiconductor supply chains,” and that the funding and incentives in the CHIPS Act “will help rebuild our supply chains, manufacturing, and infrastructure here at home, along with crucial invests from the Bipartisan Infrastructure Law and Inflation Reduction Act.”
You can read the full fact sheet released by the White House Today, August 25, 2022
EO Establishes CHIPS Implementation Steering Council and Implementation Priorities;
Commerce Department Launches CHIPS.gov
Today, President Biden signed an Executive Order to implement the semiconductor funding in the bipartisan CHIPS and Science Act of 2022. This legislation will lower the costs of goods, create high paying manufacturing jobs around the country, and ensure we make more critical technologies at home. This law builds on more than a year of work from 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 crucial invests from the Bipartisan Infrastructure Law and Inflation Reduction Act.
This Executive Order reflects the Biden-Harris Administration’s commitment to quickly increase production of semiconductors, strengthen research and design leadership, and grow a diverse semiconductor workforce to give the country a competitive edge on the world stage.
Additionally, to ensure transparent and effective communication about CHIPS Act programs, the Department of Commerce launched CHIPS.gov, 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.
CHIPS Implementation Steering Council
To coordinate 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 the Acting Director of the Office of Science and Technology Policy, Alondra Nelson. Other members of the Steering Council will include:
- Department of State, Secretary Antony Blinken
- Department of Treasury, 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 primary priorities to guide implementation across the federal government:
- Protect taxpayer dollars. The CHIPS program will include rigorous review of applications along with robust compliance and accountability requirements to ensure 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 capacity that reduces U.S. reliance on vulnerable or overly concentrated foreign production for both leading-edge and mature microelectronics, and increasing United States economic productivity and competitiveness. U.S. long-term economic and national security requires a sustainable, competitive domestic industry.
- Ensure long-term leadership in the sector. The CHIPS program will establish a dynamic, collaborative network for semiconductor research and innovation to enable long-term U.S. leadership in the industries of the future. The program will support a diversity of technologies and applications along many stages of product and process development.
- Strengthen and expand regional manufacturing and innovation clusters. Long-term competitiveness requires large economies of scale and investments across 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 many companies.
- Catalyze 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 role of government in the CHIPS program is to shift financial incentives to maximize large-scale private investment in production, break-through technologies, and workers. The CHIPS program will encourage new ecosystem partnerships that reduce risk, build on U.S. strengths, and facilitate such investments.
- Generate benefits for a broad range of stakeholders and communities. A successful CHIPS program will create benefits for startups, workers, socially and economically disadvantaged (SEDI) businesses, including minority-owned, veteran-owned and women-owned businesses and rural businesses, universities and colleges, and state and local economies, in addition to supporting semiconductor companies. The CHIPS program will encourage linkages to underserved regions and populations to draw in new participants to the semiconductor ecosystem.
Today, the Department of Commerce launched CHIPS.gov, 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 deploying funding as swiftly as possible, while also ensuring the time needed to perform necessary due diligence. CHIPS.gov will be a central resource for all information related to the implementation of the CHIPS and Science Act, and will provide information about Departmental priorities, funding opportunities, timelines, requirements and more as the information becomes available.
|READ FULL EXECUTIVE ORDER|
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IMPLEMENTATION OF THE CHIPS ACT OF 2022
|By the authority vested in me as President by the Constitution and the laws of the United States of America, and in order to effectively implement the incentives for semiconductor research, development, and manufacturing provided by division A of H.R. 4346 (the “Act”), it is hereby ordered as follows:|
Section 1. Background. The Act, known as the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022, will make transformative investments to restore and advance our Nation’s leadership in the research, development, and manufacturing of semiconductors. These investments will strengthen our Nation’s manufacturing and industrial base; create well-paying, high-skilled jobs in construction, manufacturing, and maintenance; catalyze regional economic development throughout the country; bolster United States technology leadership; and reduce our dependence on critical technologies from China and other vulnerable or overly concentrated foreign supply chains.
Meeting these objectives will require effective implementation of the Act by my Administration, in collaboration with State, local, Tribal, and territorial governments; the private sector; institutions of higher education; workforce development organizations; labor unions and other worker organizations; and allied and partner countries.
Sec. 2. Implementation Priorities. In implementing the Act, all agencies (as described in section 3502(1) of title 44, United States Code, except for the agencies described in section 3502(5) of title 44) shall, as appropriate and to the extent consistent with law, prioritize:
(a) protecting taxpayer resources, including by ensuring strong compliance and accountability measures for funding recipients;
(b) meeting economic, sustainability, and national security needs, including by building domestic manufacturing capacity that reduces reliance on vulnerable or overly concentrated foreign production for both leading-edge and mature microelectronics;
(c) ensuring long-term leadership in the microelectronics sector, including by establishing a dynamic, collaborative network for microelectronics research and innovation to enable long-term United States leadership in critical industries;
(d) catalyzing private-sector investment, including by reducing risk and maximizing large-scale private investment in production, breakthrough technologies, and worker and workforce development;
(e) generating benefits — such as well-paying, high-skilled union jobs and opportunities for startups; small businesses; and minority-owned, veteran-owned, and women-owned businesses — for a broad range of stakeholders and communities, including by investing in disadvantaged communities and by partnering with State, local, Tribal, and territorial governments and with institutions of higher education; and
(f) strengthening and expanding regional manufacturing and innovation ecosystems, including by investing in suppliers, manufacturers, workforce development, basic and translational research, and related infrastructure and cybersecurity throughout the microelectronics supply chain, and by facilitating the expansion, creation, and coordination of semiconductor clusters.
Sec. 3. CHIPS Implementation Steering Council. (a) There is established within the Executive Office of the President the CHIPS Implementation Steering Council (Steering Council). The function of the Steering Council is to coordinate policy development to ensure the effective implementation of the Act within the executive branch.
(b) The Assistant to the President for Economic Policy, the Assistant to the President for National Security Affairs, and the Director of the Office of Science and Technology Policy shall serve as Co-Chairs of the Steering Council.
(c) In addition to the Co-Chairs, the Steering Council shall consist of the following members: the Secretary of State; the Secretary of the Treasury; the Secretary of Defense; the Secretary of Commerce; the Secretary of Labor; the Secretary of Energy; the Director of the Office of Management and Budget; the Administrator of the Small Business Administration; the Director of National Intelligence; the Assistant to the President for Domestic Policy; the Chair of the Council of Economic Advisers; the National Cyber Director; the Director of the National Science Foundation; and the heads of such other executive departments, agencies, and offices as the Co-Chairs may from time to time invite to participate (d) The Co-Chairs may create and coordinate subgroups consisting of Steering Council members or their designees, as appropriate.
(e) The Co-Chairs may consult with leaders from industry, labor unions and other worker organizations, institutions of higher education, research institutions, and civil society, as appropriate and consistent with law, to provide individual perspectives and advice to the Steering Council on the effective implementation of the Act.
(f) The Co-Chairs may consult with the President’s Council of Advisors on Science and Technology, as appropriate and consistent with law, to provide advice to the Steering Council.
Sec. 4. Effective and Efficient Stewardship and Oversight of Taxpayer Resources. The Director of the Office of Management and Budget shall take appropriate actions to promote and monitor, with respect to execution of the Act, the effective and efficient stewardship and oversight of taxpayer resources, in collaboration with the Steering Council and the heads of agencies responsible for implementing the Act.
Sec. 5. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
JOSEPH R. BIDEN JR.
THE WHITE HOUSE,
August 25, 2022.