Senate Intelligence Committee chair Mark Warner and Republican
Senator John Cornyn said in a letter the success of the program
funded by Congress in August 2022 "depends on a strategic
approach that aligns with our national priorities ... We implore
you to take time to go through every application and determine
which ones are most worthy based on national security concerns."
The Commerce Department did not immediately comment on Thursday.
The department said last week it had received more than 300
statements of interest covering 37 states seeking incentives for
facilities for commercial fabrication, packaging, and R&D, and
from material suppliers and equipment manufacturers.
"The intent of the CHIPS Act is not to bailout the semiconductor
industry that is currently experiencing a cyclical industry
downturn," Warner and Cornyn wrote. "Given that individual fabs
can cost over $20 billion, we urge you to ... selectively
provide incentives to projects deemed to be of national
importance."
The Commerce Department plans to begin accepting applications in
late June. The CHIPS law also creates a 25% investment tax
credit for building chip plants, estimated to be worth $24
billion
They added that Commerce should seek "assurances that the
recipient will secure supply chains and use domestic suppliers
where possible" and noted some competitive applications "may not
receive funding."
The Biden administration has proposed rules to limit recipients
of U.S. funding from investing in the expansion of semiconductor
manufacturing in foreign countries of concern such as China and
Russia, and limits recipients of incentive funds from engaging
in joint research or technology licensing efforts with a foreign
entity of concern.
In October, the department issued new export controls to cut off
China from certain semiconductor chips made anywhere in the
world with U.S. equipment, vastly expanding its reach in its bid
to slow Beijing's technological and military advances.
(Reporting by David Shepardson in WashingtonEditing by Matthew
Lewis)
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