Implementation of the CHIPS Incentives Program, 61570-61573 [2022-22158]
Download as PDF
<![CDATA[
61570
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
with 19 CFR 351.212(b)(1).8 We will
also calculate an estimated ad valorem
importer-specific assessment rate with
which to assess whether the per-unit
assessment rate is de minimis. We will
instruct CBP to assess antidumping
duties on all appropriate entries covered
by this review when the importerspecific ad valorem assessment rate
calculated in the final results of this
review is not zero or de minimis. Where
either the respondent’s ad valorem
weighted-average dumping margin is
zero or de minimis, or an importerspecific ad valorem assessment rate is
zero or de minimis,9 we will instruct
CBP to liquidate the appropriate entries
without regard to antidumping duties.
Commerce’s ‘‘reseller policy’’ will
apply to entries of subject merchandise
during the POR produced by companies
included in these final results of review
for which the reviewed companies did
not know that the merchandise they
sold to the intermediary (e.g., a reseller,
trading company, or exporter) was
destined for the United States. In such
instances, we will instruct CBP to
liquidate unreviewed entries at the allothers rate if there is no rate for the
intermediate company(ies) involved in
the transaction.10
Commerce intends to issue
assessment instructions to CBP no
earlier than 35 days after the date of
publication of the final results of this
review in the Federal Register. If a
timely summons is filed at the U.S.
Court of International Trade, the
assessment instructions will direct CBP
not to liquidate relevant entries until the
time for parties to file a request for a
statutory injunction has expired (i.e.,
within 90 days of publication).
jspears on DSK121TN23PROD with NOTICES
Cash Deposit Requirements
The following deposit requirements
will be effective for all shipments of the
subject merchandise entered, or
withdrawn from warehouse, for
consumption on or after the publication
date of the final results of this
administrative review, as provided by
section 751(a)(2)(C) of the Act: (1) the
cash deposit rate for the POSCO single
entity will be equal to the weightedaverage dumping margin established in
the final results of this administrative
8 In these final results, Commerce applied the
assessment rate calculation method adopted in
Antidumping Proceedings: Calculation of the
Weighted-Average Dumping Margin and
Assessment Rate in Certain Antidumping
Proceedings: Final Modification, 77 FR 8101
(February 14, 2012).
9 See 19 CFR 351.106(c)(2).
10 For a full discussion of this practice, see
Antidumping and Countervailing Duty Proceedings:
Assessment of Antidumping Duties, 68 FR 23954
(May 6, 2003).
VerDate Sep<11>2014
18:37 Oct 11, 2022
Jkt 259001
review (i.e., 2.59 percent); (2) for
merchandise exported by a producer or
exporter not covered in this review but
covered in a prior segment of the
proceeding, the cash deposit rate will
continue to be the company-specific rate
published for the most recently
completed segment of this proceeding in
which the producer or exporter
participated; (3) if the exporter is not a
firm covered in this review, a prior
review, or the original less-than-fairvalue (LTFV) investigation, but the
producer is, the cash deposit rate will be
the rate established for the most recently
completed segment of the proceeding
for the producer of the merchandise;
and (4) the cash deposit rate for all other
producers and exporters will continue
to be 7.10 percent ad valorem, the allothers rate established in the LTFV
investigation.11 These cash deposit
requirements, when imposed, shall
remain in effect until further notice.
Notification to Importers
Administrative Protective Order
This notice also serves as a reminder
to parties subject to an administrative
protective order (APO) of their
responsibility concerning the return or
destruction of proprietary information
disclosed under APO in accordance
with 19 CFR 351.305(a)(3), which
continues to govern business
proprietary information in this segment
of the proceeding. Timely written
notification of the return or destruction
of APO materials, or conversion to
judicial protective order, is hereby
requested. Failure to comply with the
regulations and the terms of an APO is
a sanctionable violation.
Notification to Interested Parties
We are issuing and publishing this
notice in accordance with sections
751(a)(1) and 777(i)(1) of the Act, and 19
CFR 351.221(b)(5).
PO 00000
Order, 82 FR at 24098.
Frm 00012
Fmt 4703
Sfmt 4703
Appendix
List of Topics Discussed in the Issues and
Decision Memorandum
I. Summary
II. Background
III. The POSCO Single Entity
IV. Discussion of the Issues
Comment 1: Downstream Home Market
Sales of POSCO’s Affiliated Reseller and
Service Centers
Comment 2: General and Administrative
(G&A) Expense and Financial Expense
Ratios for POSCO International
Corporation (PIC)
Comment 3: Financial Expense Ratio for
POSCO SPS
Comment 4: G&A Expenses Ratio for
POSCO SPS
V. Recommendation
[FR Doc. 2022–22106 Filed 10–11–22; 8:45 am]
BILLING CODE 3510–DS–P
DEPARTMENT OF COMMERCE
This notice also serves as a final
reminder to importers of their
responsibility under 19 CFR
351.402(f)(2) to file a certificate
regarding the reimbursement of
antidumping duties prior to liquidation
of the relevant entries during the POR.
Failure to comply with this requirement
could result in Commerce’s
presumption that reimbursement of
antidumping duties occurred and the
subsequent assessment of double
antidumping duties.
11 See
Dated: September 28, 2022.
Abdelali Elouaradia,
Deputy Assistant Secretary for Enforcement
and Compliance.
National Institute of Standards and
Technology
[Docket Number 21006–0213]
Implementation of the CHIPS
Incentives Program
National Institute of Standards
and Technology (NIST), Commerce.
ACTION: Notice; request for information.
AGENCY:
The CHIPS Program Office
(CPO) within the National Institute of
Standards and Technology (NIST) is
seeking further information in order to
inform the design and implementation
of the CHIPS incentive programs, based
on amendments to the CHIPS program
resulting from the CHIPS Act of 2022.
This Request for Information (RFI)
follows the ‘‘Incentives, Infrastructure,
and Research and Development Needs
to Support a Strong Domestic
Semiconductor Industry’’ RFI issued by
the U.S. Department of Commerce (the
Department) on January 24, 2022, prior
to enactment of the CHIPS Act of 2022.
On September 6, 2022, the Department
released ‘‘A Strategy for the CHIPS for
America Fund,’’ describing the
Department’s implementation strategy
for the funds Congress appropriated to
catalyze long-term growth in the
domestic semiconductor industry. This
strategy was informed in part by the
information received in response to the
January 2022 RFI. Responses to this RFI,
considered alongside responses to the
prior RFI, will further inform the
planning of the CPO for the
implementation of these programs.
SUMMARY:
E:\FR\FM\12OCN1.SGM
12OCN1
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
Comments must be received by
5:00 p.m. Eastern time on November 14,
2022. Written comments in response to
this RFI should be submitted in
accordance with the instructions in the
ADDRESSES and SUPPLEMENTARY
INFORMATION sections below.
ADDRESSES: To respond to this RFI,
please submit electronic public
comments via the Federal e-Rulemaking
Portal.
1. Go to www.regulations.gov and
enter DOC–2022–0001 in the search
field,
2. Click the ‘‘Comment Now!’’ icon,
complete the required fields, and
3. Enter or attach your comments.
Comments sent by any other method,
to any other address or individual, or
received after the end of the comment
period, may not be considered.
Information submitted in response to
this request may contain business
proprietary information, which will not
be published and will be protected from
disclosure, provided the submitters
follow the instructions in
SUPPLEMENTARY INFORMATION for
submitting confidential business
information.
Comments containing references,
studies, research, and other empirical
data that are not widely published
should include electronic copies of the
referenced materials.
For Public Meetings/Webcast:
The CPO may hold future workshops
to explore in more detail questions
raised in the RFI. Notice and details
about any potential future workshop
dates, registration deadlines, and other
related information will be announced
at www.chips.gov.
FOR FURTHER INFORMATION CONTACT: For
questions about this Notice, please
contact Sam Marullo at 202–482–3844
or email RFI@chips.gov. Please direct
media inquiries to the CHIPS Press
Team at press@chips.gov.
SUPPLEMENTARY INFORMATION:
DATES:
jspears on DSK121TN23PROD with NOTICES
Background
The CPO is currently working to
implement programs authorized by Title
XCIX of the William M. (Mac)
Thornberry National Defense
Authorization Act for Fiscal Year 2021,
15 U.S.C. 4651 et seq., as amended by
sections 103 and 105 of the CHIPS Act
of 2022, with the goal of releasing an
initial funding document for the
semiconductor incentives program
within six months of the passage of the
CHIPS Act of 2022.
The Department of Commerce
published an RFI in January 2022
seeking to inform the planning of the
VerDate Sep<11>2014
18:37 Oct 11, 2022
Jkt 259001
CHIPS Programs.1 However, the CHIPS
Act of 2022 subsequently amended the
authorizing legislation for these
programs in several areas, including:
• Permitting incentives in the form of
loans, loan guarantees, or other
transactions,
• Expanding eligibility for CHIPS
incentives to include facilities and
equipment for the fabrication, assembly,
testing, production, or research and
development of materials used to
manufacture semiconductors and
semiconductor manufacturing
equipment,
• Requiring applicants to provide
plans to identify and mitigate relevant
semiconductor supply chain security
risks and policies and procedures to
combat cloning, counterfeiting, and
relabeling,
• Establishing an expansion clawback
that prohibits CHIPS incentive
recipients from investing in certain
projects in countries of concern,
• Creating taxpayer protections to
prevent recipients from spending CHIPS
funds on stock buybacks or dividends,
and
• Directing analyses of certain
diversity, equity, and inclusion
elements of the CHIPS programs.
The CPO is issuing this RFI to inform
its consideration and implementation of
these amended sections.
Specific Requests for Information
The following statements and
questions cover the major topic areas
about which the CPO seeks comment.
They are not intended to limit the topics
that may be addressed. Responses may
include any topic believed to inform
U.S. Government efforts in developing
recommendations for supporting the
growth and sustainment of a robust
domestic semiconductor manufacturing
sector to meet the current and future
needs of the public and private sectors,
regardless of whether the topic is
included in this document.
Respondents are encouraged to
respond to any or all of the following
questions and topic areas, and may
address related topics. Your comments
should indicate which questions or
topics you are addressing. Responses
may include estimates, which should be
designated as such. Your responses may
include supporting data and examples.
If your response relies on publications
or studies, please attach them.
Respondents may organize their
1 Incentives, Infrastructure, and Research and
Development Needs to Support a Strong Domestic
Semiconductor Industry, 87 FR 3497 (January 24,
2022), https://www.federalregister.gov/d/202201305.
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
61571
submissions in response to this RFI in
any manner.
The CPO is requesting information
related to the following topics:
Use of Grants, Loans, and Loan
Guarantees
1. The Department may allocate up to
$6 billion out of the $39 billion of total
incentives to support loans and loan
guarantees to covered entities. This $6
billion has a significant multiplier
effect: the principal amount of financing
available through loans and loan
guarantees could be leveraged to
support up to $75 billion in loans and
loan guarantees. This leverage will help
the CPO achieve the needed scale of
investment by facilitating additional
private capital and providing access to
debt for companies with reasonable
prospects for repayment. Applicants
will be encouraged to consider loans or
loan guarantees as part of their federal
assistance application package. Which
types of companies in the supply chain
would benefit most from the use of the
loans or loan guarantees to supplement
or in lieu of CHIPS grants?
2. How should CHIPS financial
assistance (grants, loans and/or loan
guarantees) be designed to be additive
to, rather than a substitute for, private
sector equity or debt capital?
3. What information is available on
how foreign and domestic companies
engaged in semiconductor
manufacturing or suppliers to that
industry evaluate whether to invest in a
discrete project—for example, through
internal rates of return (IRR)? Do
evaluations and IRRs differ by producer,
project, technology, or segment of
industry?
4. What debt/equity ratios have
semiconductor manufacturers or
suppliers used in previous projects that
are individually financed?
5. Does the industry, including
foreign and domestic firms, finance
semiconductor manufacturing or
supplier investments on a limited
recourse or nonrecourse project finance
basis? What proportion of investments
are financed this way?
6. How does access to debt and capital
markets differ for companies across the
semiconductor sector? Which parts of
the sector struggle to access debt and
equity capital?
Financial Assistance for Upstream
Suppliers and Materials Used To
Manufacture Semiconductors
7. For purposes of this set of
questions, the upstream supply chain
refers to companies that provide
materials (including minerals,
chemicals, slurries, gases, photomasks,
E:\FR\FM\12OCN1.SGM
12OCN1
jspears on DSK121TN23PROD with NOTICES
61572
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
photoresists), equipment, or other
inputs (including specialized services)
for the semiconductor manufacturing
process. Which elements of the
upstream supply chain could constrain
the ability to expand domestic
semiconductor production? For
example, if U.S. semiconductor
production were to increase by 30%,
would suppliers be able to keep pace?
Please specify in terms of categories like
industrial gases, raw materials, specialty
chemicals, wafers, photoresists, and/or
photomasks.
8. The CHIPS Act of 2022 increased
the eligibility for Section 9902
incentives to include facilities and
equipment for the fabrication, assembly,
testing, production, or research and
development of materials used to
manufacture semiconductors. Which
materials should be included in the
definition of ‘‘materials used to
manufacture semiconductors’’ and why?
For each material identified, if a new
facility were constructed for the
production of that material, what typical
percentage of that facility’s equipment
and output would be expected to be
used for semiconductor production, as
opposed to other manufacturing
processes?
9. Which materials used to produce
semiconductors and semiconductor
manufacturing equipment are currently
produced within the U.S. and which are
not? Are there technological or other
limitations that currently inhibit
production of such materials in the
United States? Which materials and
equipment, if any, have contributed to
production delays or other inventory
challenges? Which do you think are
most likely to contribute to delays or
challenges in the future?
10. How are upstream suppliers
concentrated geographically? Are any
concentrated in a manner that could
constrain the ability to expand
semiconductor manufacturing?
11. Which materials or equipment
critical to semiconductor production are
only or predominately available from a
single source?
12. How do upstream suppliers work
with fabs on new facility proposals?
What types of agreements or
commitments do fabs offer upstream
suppliers to co-locate with new
construction?
13. What have been the biggest supply
chain bottlenecks for U.S.
semiconductor fabs over the past five
years?
Intellectual Property
14. The CHIPS Act of 2022 requires
that applicants submit ‘‘policies and
procedures to combat cloning,
VerDate Sep<11>2014
18:37 Oct 11, 2022
Jkt 259001
counterfeiting, and relabeling of
semiconductors.’’ Are there standard
policies and procedures that companies
or industry groups use to achieve this
goal? Which industry or publicly
defined standards should be used to
measure the effectiveness of efforts to
combat cloning, counterfeiting, or
relabeling?
Expansion Clawback
15. The Secretary has authority, in
consultation with the Secretary of
Defense and the Director of National
Intelligence, to define the terms
‘‘semiconductor manufacturing’’ and
‘‘semiconductor manufacturing
capacity.’’ To ensure effective limits on
manufacturing in foreign countries of
concern—while balancing the interests
of potential eligible CHIPS applicants
that may have existing legacy
facilities—what types of activities
would need to be included under the
scope of these terms? How do industry
members define the terms in trade
usage?
16. What considerations are relevant
in determining what memory, analog,
packaging, and other technologies
should be considered equivalent to 28
nm logic chips?
17. Given the complexities in
chipmakers determining where their
product might eventually reach its enduse, how can the CPO best enforce the
requirement that a proposed investment
‘‘predominately serve[s] the market’’ of
the foreign country?
Taxpayer Protections
18. The CPO has committed to
prioritizing companies that are
dedicated to making investments in
manufacturing, innovation, and
workers. Are there types of investments
and/or pre-commitments that data
suggest have been most effective in
promoting inclusive economic growth
for workers and communities?
19. The CPO intends to preference
companies which commit not to engage
in stock buybacks with non-CHIPS
funds. What terms and length should
the CPO seek in such a commitment and
should the commitment extend to any
forms of capital distribution beyond
buybacks? What types of existing
buyback programs or programs tailored
to prevent dilution from the award of
employee stock compensation exist
within the industry?
20. Should the CPO consider
companies’ existing capital allocation
strategies in formulating the standards it
will apply to its evaluation of stock
buybacks and the payment of dividends,
and if so, how?
PO 00000
Frm 00014
Fmt 4703
Sfmt 4703
Opportunity and Inclusion
21. What are the primary barriers to
entry for individuals from underserved
communities seeking employment in
the industry, including economically
disadvantaged individuals, women,
people of color, veterans, disabled
individuals, people without college
degrees, and people in rural
communities? Do the barriers differ by
job type? By community? By geography?
22. What policies have been
successful in ensuring that job
opportunities are good quality and
available to and filled by a diverse pool
of workers? Does industry currently
offer wrap-around services to
employees: childcare, paid leave,
transportation, etc.? Why or why not?
23. What actions can industry take to
promote diversity, equity, and inclusion
in the projects that receive CHIPS
incentives? What actions is industry
already taking to promote diversity,
equity, and inclusion? In responding,
please consider inclusion broadly, such
as women, people of color, veterans,
disabled individuals, people without
college degrees, and people in rural
communities.
24. What policies have proven
effective in providing opportunities for
small and underrepresented businesses
including minority-owned, womenowned and veteran-owned businesses
and rural businesses. Which tactics are
most effective in creating opportunities
in fab constriction? The production
supply chain? R&D?
25. What actions can the CPO take to
ensure that the implementation of the
CHIPS incentive programs is equitable
and inclusive?
Other
26. What other information should
inform the CPO’s implementation of the
CHIPS incentive programs?
27. What data will be important for
the agency to collect to build evidence
on the effectiveness of the CHIPS
program? What are potential data
sources?
Requirements for Written Comments
Anyone submitting business
confidential information should clearly
identify the business confidential
portion at the time of submission, file a
statement justifying nondisclosure and
referring to the specific legal authority
claimed, and provide a non-confidential
version of the submission. Users
submitting a form that contains business
confidential information will need to
submit a non-confidential version of the
same form that does not contain the
confidential business information. The
E:\FR\FM\12OCN1.SGM
12OCN1
61573
Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Notices
non-confidential version of the
submission will be placed in the public
file on https://www.regulations.gov. For
comments submitted electronically
containing business confidential
information, the file name of the
business confidential version should
begin with the characters ‘‘BC.’’ Any
page containing business confidential
information must be clearly marked
‘‘BUSINESS CONFIDENTIAL’’ on the
top of that page. The non-confidential
version must be clearly marked
‘‘PUBLIC.’’ The file name of the nonconfidential version should begin with
the character ‘‘P.’’ The ‘‘BC’’ and ‘‘P’’
should be followed by the name of the
person or entity submitting the
comments.
All relevant non-confidential
comments, including attachments and
other supporting materials, received in
response to the RFI will generally be
made publicly available on
www.regulations.gov.
Alicia Chambers,
NIST Executive Secretariat.
[FR Doc. 2022–22158 Filed 10–11–22; 8:45 am]
BILLING CODE 3510–13–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XC450]
Fisheries of the South Atlantic;
National Marine Fisheries Service—
Public Meetings
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice of Dolphin (i.e.,
dolphinfish or mahi mahi) Management
Strategy Stakeholder workshops to be
held by the National Marine Fisheries
Service.
AGENCY:
The National Marine
Fisheries Service will hold a series of
in-person workshops on November 2
and November 3, 2022.
DATES: The workshops will be held on
Wednesday, November 2, 2022, from
SUMMARY:
5:30 p.m. until 8:30 p.m. EDT, and on
Thursday, November 3, 2022, from 5:30
p.m. until 8:30 p.m. EDT.
Meeting address: The
meeting is open to members of the
public. The workshop on November 2
will be held at the Montauk Fire
Department, 12 Flamingo Ave,
Montauk, NY 11954. The workshop on
November 3 will be held at the Coastal
Institute Building, Room #140,
University of Rhode Island Graduate
School of Oceanography, 215 South
Ferry Road, Narragansett, RI 02882.
Those interested in participating should
contact Cassidy Peterson (see FOR
FURTHER INFORMATION CONTACT).
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
In
collaboration with the South Atlantic
Fishery Management Council, NMFS is
embarking on a Management Strategy
Evaluation (MSE) to guide dolphin (i.e.,
dolphinfish or mahi mahi) management
in the jurisdiction. The MSE will be
used to develop a management
procedure that best achieves the suite of
management objectives for the U.S.
Atlantic dolphin fishery. Stakeholder
input is necessary for characterizing the
management objectives of the fishery
and stock, identifying any uncertainties
in the system that should be built into
the MSE analysis, and providing
guidance on the acceptability of the
proposed management procedures.
Agenda items for the meeting include:
developing an understanding of
management procedures and
management strategy evaluation,
developing conceptual management
objectives, and clarifying uncertainties
that should be addressed within the
framework.
Special Accommodations
These meetings are physically
accessible to people with disabilities.
Requests for auxiliary aids should be
directed to Cassidy Peterson (see FOR
Dated: October 5, 2022.
Jennifer M. Wallace,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2022–22140 Filed 10–11–22; 8:45 am]
BILLING CODE 3510–22–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
[RTID 0648–XC452]
Cassidy Peterson, Management Strategy
Evaluation Specialist, NMFS Southeast
Fisheries Science Center, phone (910)
708–2686; email: Cassidy.Peterson@
noaa.gov.
SUPPLEMENTARY INFORMATION:
FURTHER INFORMATION CONTACT) 5 days
prior to the meeting.
The times and sequence specified in
this agenda are subject to change.
Authority: 16 U.S.C. 1801 et seq.
Marine Mammals and Endangered
Species
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; issuance of permits and
permit amendments.
AGENCY:
Notice is hereby given that
permits and permit amendments have
been issued to the following entities
under the Marine Mammal Protection
Act (MMPA) and the Endangered
Species Act (ESA), as applicable.
ADDRESSES: The permits and related
documents are available for review
upon written request via email to
NMFS.Pr1Comments@noaa.gov.
FOR FURTHER INFORMATION CONTACT: Erin
Markin, Ph.D. (Permit No. 26591),
Jennifer Skidmore (Permit No. 26667,
26678, and 26708), and Sara Young
(Permit No. 21018); at (301) 427–8401.
SUPPLEMENTARY INFORMATION: Notices
were published in the Federal Register
on the dates listed below that requests
for a permit or permit amendment had
been submitted by the below-named
applicants. To locate the Federal
Register notice that announced our
receipt of the application and a
complete description of the activities, go
to www.federalregister.gov and search
on the permit number provided in Table
1 below.
SUMMARY:
jspears on DSK121TN23PROD with NOTICES
TABLE 1—ISSUED PERMITS AND PERMIT AMENDMENTS
Previous Federal
Register notice
Permit No.
RTID
Applicant
21018–01 ...
0648–XF536 .................
26591 .........
0648–XC141 .................
Brent Stewart, Ph.D., Hubbs-SeaWorld Research
Institute, 2595 Ingraham Street, San Diego,
CA 92109.
BBC Natural History and Factual Productions,
Ltd., Television Centre, 101 Wood Lane, London, UK W12 7FA.
VerDate Sep<11>2014
18:37 Oct 11, 2022
Jkt 259001
PO 00000
Frm 00015
Fmt 4703
Sfmt 4703
Issuance date
82 FR 48985; October
23, 2017.
September 26, 2022.
87 FR 39803; July 5,
2022.
September 2, 2022.
E:\FR\FM\12OCN1.SGM
12OCN1
]]>Agencies
[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Notices]
[Pages 61570-61573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-22158]
-----------------------------------------------------------------------
DEPARTMENT OF COMMERCE
National Institute of Standards and Technology
[Docket Number 21006-0213]
Implementation of the CHIPS Incentives Program
AGENCY: National Institute of Standards and Technology (NIST),
Commerce.
ACTION: Notice; request for information.
-----------------------------------------------------------------------
SUMMARY: The CHIPS Program Office (CPO) within the National Institute
of Standards and Technology (NIST) is seeking further information in
order to inform the design and implementation of the CHIPS incentive
programs, based on amendments to the CHIPS program resulting from the
CHIPS Act of 2022. This Request for Information (RFI) follows the
``Incentives, Infrastructure, and Research and Development Needs to
Support a Strong Domestic Semiconductor Industry'' RFI issued by the
U.S. Department of Commerce (the Department) on January 24, 2022, prior
to enactment of the CHIPS Act of 2022. On September 6, 2022, the
Department released ``A Strategy for the CHIPS for America Fund,''
describing the Department's implementation strategy for the funds
Congress appropriated to catalyze long-term growth in the domestic
semiconductor industry. This strategy was informed in part by the
information received in response to the January 2022 RFI. Responses to
this RFI, considered alongside responses to the prior RFI, will further
inform the planning of the CPO for the implementation of these
programs.
[[Page 61571]]
DATES: Comments must be received by 5:00 p.m. Eastern time on November
14, 2022. Written comments in response to this RFI should be submitted
in accordance with the instructions in the ADDRESSES and SUPPLEMENTARY
INFORMATION sections below.
ADDRESSES: To respond to this RFI, please submit electronic public
comments via the Federal e-Rulemaking Portal.
1. Go to www.regulations.gov and enter DOC-2022-0001 in the search
field,
2. Click the ``Comment Now!'' icon, complete the required fields,
and
3. Enter or attach your comments.
Comments sent by any other method, to any other address or
individual, or received after the end of the comment period, may not be
considered.
Information submitted in response to this request may contain
business proprietary information, which will not be published and will
be protected from disclosure, provided the submitters follow the
instructions in SUPPLEMENTARY INFORMATION for submitting confidential
business information.
Comments containing references, studies, research, and other
empirical data that are not widely published should include electronic
copies of the referenced materials.
For Public Meetings/Webcast:
The CPO may hold future workshops to explore in more detail
questions raised in the RFI. Notice and details about any potential
future workshop dates, registration deadlines, and other related
information will be announced at www.chips.gov.
FOR FURTHER INFORMATION CONTACT: For questions about this Notice,
please contact Sam Marullo at 202-482-3844 or email [email protected].
Please direct media inquiries to the CHIPS Press Team at
[email protected].
SUPPLEMENTARY INFORMATION:
Background
The CPO is currently working to implement programs authorized by
Title XCIX of the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021, 15 U.S.C. 4651 et seq., as
amended by sections 103 and 105 of the CHIPS Act of 2022, with the goal
of releasing an initial funding document for the semiconductor
incentives program within six months of the passage of the CHIPS Act of
2022.
The Department of Commerce published an RFI in January 2022 seeking
to inform the planning of the CHIPS Programs.\1\ However, the CHIPS Act
of 2022 subsequently amended the authorizing legislation for these
programs in several areas, including:
---------------------------------------------------------------------------
\1\ Incentives, Infrastructure, and Research and Development
Needs to Support a Strong Domestic Semiconductor Industry, 87 FR
3497 (January 24, 2022), https://www.federalregister.gov/d/2022-01305.
---------------------------------------------------------------------------
Permitting incentives in the form of loans, loan
guarantees, or other transactions,
Expanding eligibility for CHIPS incentives to include
facilities and equipment for the fabrication, assembly, testing,
production, or research and development of materials used to
manufacture semiconductors and semiconductor manufacturing equipment,
Requiring applicants to provide plans to identify and
mitigate relevant semiconductor supply chain security risks and
policies and procedures to combat cloning, counterfeiting, and
relabeling,
Establishing an expansion clawback that prohibits CHIPS
incentive recipients from investing in certain projects in countries of
concern,
Creating taxpayer protections to prevent recipients from
spending CHIPS funds on stock buybacks or dividends, and
Directing analyses of certain diversity, equity, and
inclusion elements of the CHIPS programs.
The CPO is issuing this RFI to inform its consideration and
implementation of these amended sections.
Specific Requests for Information
The following statements and questions cover the major topic areas
about which the CPO seeks comment. They are not intended to limit the
topics that may be addressed. Responses may include any topic believed
to inform U.S. Government efforts in developing recommendations for
supporting the growth and sustainment of a robust domestic
semiconductor manufacturing sector to meet the current and future needs
of the public and private sectors, regardless of whether the topic is
included in this document.
Respondents are encouraged to respond to any or all of the
following questions and topic areas, and may address related topics.
Your comments should indicate which questions or topics you are
addressing. Responses may include estimates, which should be designated
as such. Your responses may include supporting data and examples. If
your response relies on publications or studies, please attach them.
Respondents may organize their submissions in response to this RFI in
any manner.
The CPO is requesting information related to the following topics:
Use of Grants, Loans, and Loan Guarantees
1. The Department may allocate up to $6 billion out of the $39
billion of total incentives to support loans and loan guarantees to
covered entities. This $6 billion has a significant multiplier effect:
the principal amount of financing available through loans and loan
guarantees could be leveraged to support up to $75 billion in loans and
loan guarantees. This leverage will help the CPO achieve the needed
scale of investment by facilitating additional private capital and
providing access to debt for companies with reasonable prospects for
repayment. Applicants will be encouraged to consider loans or loan
guarantees as part of their federal assistance application package.
Which types of companies in the supply chain would benefit most from
the use of the loans or loan guarantees to supplement or in lieu of
CHIPS grants?
2. How should CHIPS financial assistance (grants, loans and/or loan
guarantees) be designed to be additive to, rather than a substitute
for, private sector equity or debt capital?
3. What information is available on how foreign and domestic
companies engaged in semiconductor manufacturing or suppliers to that
industry evaluate whether to invest in a discrete project--for example,
through internal rates of return (IRR)? Do evaluations and IRRs differ
by producer, project, technology, or segment of industry?
4. What debt/equity ratios have semiconductor manufacturers or
suppliers used in previous projects that are individually financed?
5. Does the industry, including foreign and domestic firms, finance
semiconductor manufacturing or supplier investments on a limited
recourse or nonrecourse project finance basis? What proportion of
investments are financed this way?
6. How does access to debt and capital markets differ for companies
across the semiconductor sector? Which parts of the sector struggle to
access debt and equity capital?
Financial Assistance for Upstream Suppliers and Materials Used To
Manufacture Semiconductors
7. For purposes of this set of questions, the upstream supply chain
refers to companies that provide materials (including minerals,
chemicals, slurries, gases, photomasks,
[[Page 61572]]
photoresists), equipment, or other inputs (including specialized
services) for the semiconductor manufacturing process. Which elements
of the upstream supply chain could constrain the ability to expand
domestic semiconductor production? For example, if U.S. semiconductor
production were to increase by 30%, would suppliers be able to keep
pace? Please specify in terms of categories like industrial gases, raw
materials, specialty chemicals, wafers, photoresists, and/or
photomasks.
8. The CHIPS Act of 2022 increased the eligibility for Section 9902
incentives to include facilities and equipment for the fabrication,
assembly, testing, production, or research and development of materials
used to manufacture semiconductors. Which materials should be included
in the definition of ``materials used to manufacture semiconductors''
and why? For each material identified, if a new facility were
constructed for the production of that material, what typical
percentage of that facility's equipment and output would be expected to
be used for semiconductor production, as opposed to other manufacturing
processes?
9. Which materials used to produce semiconductors and semiconductor
manufacturing equipment are currently produced within the U.S. and
which are not? Are there technological or other limitations that
currently inhibit production of such materials in the United States?
Which materials and equipment, if any, have contributed to production
delays or other inventory challenges? Which do you think are most
likely to contribute to delays or challenges in the future?
10. How are upstream suppliers concentrated geographically? Are any
concentrated in a manner that could constrain the ability to expand
semiconductor manufacturing?
11. Which materials or equipment critical to semiconductor
production are only or predominately available from a single source?
12. How do upstream suppliers work with fabs on new facility
proposals? What types of agreements or commitments do fabs offer
upstream suppliers to co-locate with new construction?
13. What have been the biggest supply chain bottlenecks for U.S.
semiconductor fabs over the past five years?
Intellectual Property
14. The CHIPS Act of 2022 requires that applicants submit
``policies and procedures to combat cloning, counterfeiting, and
relabeling of semiconductors.'' Are there standard policies and
procedures that companies or industry groups use to achieve this goal?
Which industry or publicly defined standards should be used to measure
the effectiveness of efforts to combat cloning, counterfeiting, or
relabeling?
Expansion Clawback
15. The Secretary has authority, in consultation with the Secretary
of Defense and the Director of National Intelligence, to define the
terms ``semiconductor manufacturing'' and ``semiconductor manufacturing
capacity.'' To ensure effective limits on manufacturing in foreign
countries of concern--while balancing the interests of potential
eligible CHIPS applicants that may have existing legacy facilities--
what types of activities would need to be included under the scope of
these terms? How do industry members define the terms in trade usage?
16. What considerations are relevant in determining what memory,
analog, packaging, and other technologies should be considered
equivalent to 28 nm logic chips?
17. Given the complexities in chipmakers determining where their
product might eventually reach its end-use, how can the CPO best
enforce the requirement that a proposed investment ``predominately
serve[s] the market'' of the foreign country?
Taxpayer Protections
18. The CPO has committed to prioritizing companies that are
dedicated to making investments in manufacturing, innovation, and
workers. Are there types of investments and/or pre-commitments that
data suggest have been most effective in promoting inclusive economic
growth for workers and communities?
19. The CPO intends to preference companies which commit not to
engage in stock buybacks with non-CHIPS funds. What terms and length
should the CPO seek in such a commitment and should the commitment
extend to any forms of capital distribution beyond buybacks? What types
of existing buyback programs or programs tailored to prevent dilution
from the award of employee stock compensation exist within the
industry?
20. Should the CPO consider companies' existing capital allocation
strategies in formulating the standards it will apply to its evaluation
of stock buybacks and the payment of dividends, and if so, how?
Opportunity and Inclusion
21. What are the primary barriers to entry for individuals from
underserved communities seeking employment in the industry, including
economically disadvantaged individuals, women, people of color,
veterans, disabled individuals, people without college degrees, and
people in rural communities? Do the barriers differ by job type? By
community? By geography?
22. What policies have been successful in ensuring that job
opportunities are good quality and available to and filled by a diverse
pool of workers? Does industry currently offer wrap-around services to
employees: childcare, paid leave, transportation, etc.? Why or why not?
23. What actions can industry take to promote diversity, equity,
and inclusion in the projects that receive CHIPS incentives? What
actions is industry already taking to promote diversity, equity, and
inclusion? In responding, please consider inclusion broadly, such as
women, people of color, veterans, disabled individuals, people without
college degrees, and people in rural communities.
24. What policies have proven effective in providing opportunities
for small and underrepresented businesses including minority-owned,
women-owned and veteran-owned businesses and rural businesses. Which
tactics are most effective in creating opportunities in fab
constriction? The production supply chain? R&D?
25. What actions can the CPO take to ensure that the implementation
of the CHIPS incentive programs is equitable and inclusive?
Other
26. What other information should inform the CPO's implementation
of the CHIPS incentive programs?
27. What data will be important for the agency to collect to build
evidence on the effectiveness of the CHIPS program? What are potential
data sources?
Requirements for Written Comments
Anyone submitting business confidential information should clearly
identify the business confidential portion at the time of submission,
file a statement justifying nondisclosure and referring to the specific
legal authority claimed, and provide a non-confidential version of the
submission. Users submitting a form that contains business confidential
information will need to submit a non-confidential version of the same
form that does not contain the confidential business information. The
[[Page 61573]]
non-confidential version of the submission will be placed in the public
file on https://www.regulations.gov. For comments submitted
electronically containing business confidential information, the file
name of the business confidential version should begin with the
characters ``BC.'' Any page containing business confidential
information must be clearly marked ``BUSINESS CONFIDENTIAL'' on the top
of that page. The non-confidential version must be clearly marked
``PUBLIC.'' The file name of the non-confidential version should begin
with the character ``P.'' The ``BC'' and ``P'' should be followed by
the name of the person or entity submitting the comments.
All relevant non-confidential comments, including attachments and
other supporting materials, received in response to the RFI will
generally be made publicly available on www.regulations.gov.
Alicia Chambers,
NIST Executive Secretariat.
[FR Doc. 2022-22158 Filed 10-11-22; 8:45 am]
BILLING CODE 3510-13-P
