- GAO found that Commerce canceled awards representing $7.8 billion of the $11 billion for advanced microelectronics R&D activities
- The watchdog said Commerce lacks plans and timelines for meeting NSTC, NAPMP and the Industrial Advisory Committee statutory requirements
- The Commerce Department has funded 49 semiconductor projects involving 24 companies
The Government Accountability Office is recommending that the Department of Commerce develop detailed plans and timelines for several semiconductor research and development initiatives after finding that key programs have been canceled, paused or lacked clear implementation schedules.
What Challenges Did GAO Identify in Commerce’s R&D Efforts?
In a report released Thursday, GAO found that Commerce canceled awards that accounted for $7.8 billion of the $11 billion appropriated for advanced microelectronics R&D activities.
The watchdog said Commerce lacked a plan or timeline to fully satisfy statutory requirements for the National Semiconductor Technology Center, the National Advanced Packaging Manufacturing Program, and the Industrial Advisory Committee.
GAO also noted that the agency canceled the technology center’s award in 2025, paused or terminated NAPMP awards and did not renew the Industrial Advisory Committee’s charter.
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What Awards Has Commerce Dept Given for Microelectronics?
GAO said the Commerce Department has awarded nine additional projects since July 2025 under its semiconductor facilities and equipment incentives initiative. Before this, DOC funded 40 projects, tasking 19 companies with constructing, expanding or modernizing semiconductor facilities. The department has now funded 49 projects involving 24 companies, 14 of which also saw their existing award terms revised.
Commerce has begun setting award amounts based on whether companies agree to provide equity in exchange for funding, among other criteria. So far, the department has released $13.1 billion, or about 42 percent of the $31.5 billion in direct funding allocated through the program.
GAO also said that award recipients had met all required deliverables by their scheduled deadlines, even though some fell behind the originally anticipated timeline.
What Did GAO Recommend?
GAO urged Commerce to develop plans and timelines for reestablishing the technology center and advisory committee and determine how it will meet NAPMP requirements. In conducting the review, GAO examined Commerce records related to project milestones and funding disbursements, assessed the department’s activities against FY 2021 National Defense Authorization Act requirements and interviewed agency officials.
