CHIPS Act funding delay extended, further extending the wait

The government has yet to release the $52.7 billion promised to chip manufacturers, designers, and researchers on the first anniversary of the CHIPS and Science Act. However, the U.S. Department of Commerce plans to deliver the first funds by the end of this year. The delay is due to the overwhelming number of applications from chip companies and the time it takes to review each applicant’s qualifications. Despite hiring additional employees dedicated to this task, there have been over 460 applications filed. Smaller chipmakers and designers are most affected by the delay as they heavily rely on government funding for their plans. Larger chip companies, on the other hand, have enough resources to proceed with their projects while waiting. Analysts and consultants are not surprised by the slow progress of government agencies. There is also a debate about whether to fund offshore competitors of U.S.-based chipmakers. Some companies are seeking funds from private investors or forming partnerships while waiting for government funding. The enthusiasm among smaller chipmakers may be dampened by the reduced inventories of larger chip companies, which has caused a chip glut and decreased spending by corporate users.