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ABC has now launched the CHIPS Act—Resources and Guidance for Contractors webpage to assist contractors in competing for projects utilizing the nearly $50 billion in direct federal funding and additional tax credits in support of restoring U.S. leadership in semiconductor manufacturing and improving the semiconductor supply chain.

In July 2022, Congress enacted the CHIPS Act of 2022 (Division A of P.L. 117-167), which was signed into law by President Joe Biden on Aug. 9, 2022. Of interest to the construction industry, the CHIPS Act establishes and appropriates $39 billion to a CHIPS for America Fund to bolster semiconductor manufacturing capacity in the United States by providing financial incentives for building, expanding and equipping domestic fabrication facilities and companies in the semiconductor supply chain. The fund also provides $11 billion for semiconductor R&D activities, a National Advanced Packaging Manufacturing Program and the establishment of up to three Manufacturing USA institutes.

Unfortunately, the U.S. Department of Commerce has strongly encouraged applicants to require controversial project labor agreements on CHIPS Act funding. However, the CHIPS Act Notices of Funding Opportunity do not require applicants to mandate PLAs. CHIPS Act projects are also subject to Davis-Bacon prevailing wage requirements. ABC’s resource webpage provides further information on ensuring compliance with these requirements.

Please reach out to Michael Altman at [email protected] with any questions or comments regarding CHIPS Act compliance.