The Department of Commerce’s National Institute of Standards and Technology has issued a final rule that seeks to implement measures meant to protect the incentives program under the CHIPS and Science Act from national security risks and maintain U.S. technological leadership in the semiconductor industry.
The rule sets standards to restrict recipients of CHIPS funding from expanding semiconductor manufacturing facilities in foreign countries of concern for 10 years following the award and prohibits recipients from adding new production lines or cleanroom space that lead to the expansion of a facility’s manufacturing capacity beyond 10 percent, NIST said Friday.
The policy classifies a list of semiconductors as critical to U.S. national security, including chips that are used for military capabilities, quantum computing and those used in radiation-intensive environments, and outlines restrictions on joint research and tech licensing efforts with foreign entities of concern.
“CHIPS for America is fundamentally a national security initiative and these guardrails will help ensure companies receiving U.S. Government funds do not undermine our national security as we continue to coordinate with our allies and partners to strengthen global supply chains and enhance our collective security,” said Commerce Secretary Gina Raimondo.
NIST issued the final rule after taking into consideration feedback and insights on the proposed rule introduced in March.
