CHIPS Act

The Creating Helpful Incentives to Produce Semiconductors for America (CHIPS) Act is aimed at bolstering domestic semiconductor manufacturing and boosting federal scientific research and development. The legislation provides more than $39 billion in direct grant funding and $24 billion in manufacturing tax credits for private sector entities to develop semiconductor manufacturing capacity in the United States.

Our cross-practice team of lawyers and advisors are helping businesses across the semiconductor ecosystem navigate this historic and complex legislation at the local, state, federal and international levels. With our wide-ranging capabilities across multiple practices and industries, our CHIPS team provides government relations, legal compliance and policy counsel services on the implementation of the CHIPS Act for domestic and international businesses across all industries.

Services In-Depth

Application Support and Award Compliance

We have a team of dedicated lawyers and advisors across various practices who understand the complexities and nuances of the process of applying for federal financial assistance, including in the CHIPS Act, as well as claiming its advanced manufacturing tax credit.

Our lawyers and advisors are knowledgeable about the conditions associated with claiming this credit and accepting this assistance, such as restrictions on stock buybacks, project delays and expanding advanced semiconductor manufacturing capacity in China. We have deep experience in understanding the myriad distinctive compliance, accounting and audit requirements associated with federal funding.

Research and Development Support—Federal Funding

The CHIPS Act includes $11 billion for various research and development efforts to support the semiconductor ecosystem. The bill has significant potential implications for companies and other stakeholders outside of the semiconductor space, authorizing $100 billion over five years for programs focused on science and technology.

With our renowned policy and government contracts and grants teams, we help clients secure federal funds not just through the federal budget process, but also through grants awarded competitively by federal agencies. We help clients navigate the grant application process with our in-depth knowledge of the legislation.

Lobbying & Public Policy

Our bipartisan, market-leading lobbying & public policy team works with members of Congress, executive branch agencies and the White House on a broad range of policy issues, including those related to the CHIPS Act.

We have a proven track record of helping clients advocate on behalf of federal policies impacting their business operations. We have been successful in elevating our clients’ standing in the federal public policy arena, having achieved tangible results, including legislative and administrative policy changes and federal funding. Combining who we know with what we know, we are able to ensure our clients’ achieve their business goals and objectives as it relates to the CHIPS Act.

Tax

The CHIPS Act includes a 25% investment tax credit for semiconductor manufacturing facilities expenditures. Our tax team offers multidisciplinary services in order to ensure that no consideration is neglected in order to achieve our clients’ business goals. Many of our tax lawyers and advisors have held top positions in government and judicial bodies, including as lawyers for the tax division of the Department of Justice, associate international tax counsel at the Department of Treasury and attorney-advisor and law clerk to chief judges of the U.S. Tax Court.

International Trade

The CHIPS Act includes a new set of guardrails to ensure that entities that receive the semiconductor incentive funding do not use the funding to buy back their own stock, provide shareholders with dividend payments or expand advanced semiconductor manufacturing capabilities in foreign countries of concern like China. This guardrail provision is of significant consequence to businesses and must be taken into account with every transaction.

We are equipped to help clients navigate this provision so that they are fully compliant with the legislation. We have extensive experience guiding companies and industries through the detailed trade regulatory processes.