Wilmington, Delaware, United States, Nov. 14, 2023 (GLOBE NEWSWIRE) — Transparency Market Research Inc. – The market for commercial building automation accounted for US$ 32.96 billion in 2020. TMR predicts the commercial building automation market is expected to reach US$ 76.49 billion by 2031. Through 2031, the market is expected to expand at a CAGR of 8.3%.
Businesses are more likely to invest in building automation systems as their awareness of the benefits grows. Building owners and managers are encouraged to participate in education and training programs to gain a deeper understanding of the advantages of automation.
The integration of building automation with advanced security systems enhances overall safety. Access control, surveillance, and emergency response systems can be integrated into the automation platform, providing a comprehensive approach to building security.
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Global Commercial Building Automation Market: Key Players
The top Commercial Building Automation vendors are focusing on making more affordable Commercial Building Automations. The leading players are also diversifying their product portfolios and acquiring other companies. Other key trends in the Commercial Building Automation market include
- ABB Ltd.
- Cisco Systems Inc.
- Honeywell International Inc.
- Hubbell Inc.
- Emerson Electric Co.
- Johnson Controls International plc
- Robert Bosch GmbH
- Schneider Electric SE
- United Technologies Corp.
- Siemens AG
Key Findings of Market Report
- The growing government initiative to promote green buildings is driving demand for commercial building automation.
- Smart city initiatives and technologies are expected to drive demand for commercial building automation systems.
- Using automation to control and monitor energy usage, buildings can be made more energy-efficient.
- Many building control systems, including heating and security, are becoming more sophisticated and often rely on cloud technologies to operate remotely.
- Artificial intelligence and machine learning help predict equipment issues and improve building performance.
- With features like smart lighting and personalized climate control, automating buildings makes them more user-friendly.
- The number of connected devices in buildings is increasing, which makes it essential to protect building systems from cyber threats.
Global Commercial Building Automation Market: Growth Drivers
The need for energy conservation and increased awareness of environmental issues have contributed to the focus on sustainable practices. Controlling lighting, HVAC, and other systems via building automation systems (BAS) optimize energy consumption.
By optimizing energy usage, preventing preventative maintenance, and enhancing overall efficiency, building automation systems help reduce operational costs. Businesses increasingly adopt these solutions to reduce utility costs and improve building operations.
Building automation systems have been adopted more commonly due to energy regulations and government initiatives encouraging sustainable practices. Organizations that implement energy-efficient technologies may be eligible for financial incentives and rebates.
Building automation solutions have become more sophisticated and interconnected with technological advancements, such as artificial intelligence (AI) and the Internet of Things (IoT). Data analytics, remote control, and real-time monitoring are all made possible by these technologies.
By integrating building automation systems, occupants may experience greater comfort and well-being. Increased productivity and employee satisfaction are attributed to these systems because they provide optimal lighting, temperature control, and air quality.
Buildings that are intelligent and integrate multiple systems are becoming popular. Several IoT devices are now included in building management ecosystems, including access control, security, and data collection.
With global events such as the COVID-19 pandemic, remote monitoring and control of building systems have become increasingly important. Automation is a way to improve the flexibility of building operations by allowing building managers to perform operational management and optimization from any location.
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Global Commercial Building Automation Market: Regional Landscape
Europe is expected to lead the commercial building automation market. Regulations in Europe mandate automation in large, non-residential buildings. Regulations of this kind also positively impact the market demand for these products. Security concerns also contribute to the growth of security systems as they become more prevalent in commercial buildings.
According to the Buildings Performance Institute Europe (BPIE), automation can significantly reduce energy costs in virtually any commercial building, regardless of energy prices, usage, and climate. By controlling access to certain areas and monitoring activity, building automation systems can enhance security in commercial buildings. By detecting fires and other emergencies, these systems can also enhance safety.
Key Developments
- In October 2023, 75F, a leading provider of smart building automation, launched Saffron AI, a building automation platform powered by artificial intelligence. Through Saffron AI, facilities professionals will be able to communicate directly with their buildings, helping them reach new levels of efficiency.
- In November 2023, with the growing demand for smarter, more sustainable, and more connected cities, Grundfos, a leading pump manufacturer and water technology company, unveiled its new NK and NKE products in Singapore. With enhanced monitoring capabilities, additional connectivity, and ease of use, energy efficiency is enhanced with NKE pumps.
Global Commercial Building Automation Market: Segmentation
- By Product Type
- Power Supply
- Room Automation
- I/O Module
- Actuators & Actuators Module
- Controllers
- HVAC Systems
- Security and Surveillance
- Illumination and Light Sensors
- Fire Protection Systems
- Energy Management Systems
- Others (Interfacing Components, Elevator and Escalator Management, etc.)
- By Solution Offering
- Lighting Control and Regulation
- Interfacing and Inter-working with Other Building Systems
- Blind and Shutter Control
- Temperature Control and Regulation
- Energy and Load Management
- Security and Fault Monitoring
- Visualization and Remote Control
- Monitoring, Reporting, Display
- By End-user
- Offices
- Retail
- Hospitality Sector
- By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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BETHLEHEM, Pa. — A corner property in south Bethlehem is up for sale for $3.5 million, but the buildings and space for parking are not the real draw.
The potential sale of 1414 E. Fourth St. is all about the location. At 3.3 acres total, the asking price is $1.06 million per acre. High-density residential use is one of the potential uses.
“Wow, what a redevelopment property” reads an ad from Hanna Commercial Real Estate, which describes the site across from the Wind Creek Casino as a gateway to Bethlehem.
The property is home to an office marked as Szilagyi Fuel. There is also storage space and a nine-unit apartment building, according to the ad.
The appeal of 1414-16 East Fourth is more about what it can be than what it is.
The land is near Interstate 78 and Lehigh University, and adjacent to Lehigh Valley Industrial Park VII.
“Plans are available showing the potential of a transition to retail, hotel and high-density resident uses,” according to Hanna Commercial Real Estate.
South Bethlehem is becoming a more vertical neighborhood, with tall apartment buildings going up or proposed from New Street to the east.
The latest proposal is Serfass Development’s plan for a 240-unit six-story building just to the east of the southern end of the Philip J. Fahy Memorial Bridge, adding to the hundreds of apartments on the way or in the approval process.
Serfass plans to use four acres that is now home to a semiconductor-wafer maker, IQE Plc. That U.K.-based company is moving out.
The Serfass project is just under the Fahy bridge from Riverport, a West Second Street condominium complex in the former Bethlehem Steel Johnson Machinery Building.
The condominium era in the Lehigh Valley did not last long. Recent multi-family building plans lean toward rentals, not owner-occupied dwellings.
At a Bethlehem Planning Commission meeting last week, a Riverport resident objected to the Serfass plan because it would bring in renters, not owners.
There are also incentives available for the East Fourth Street property, according to Hanna Commercial. Among them, LERTA: Local Economic Revitalization Tax Assistance. That Pennsylvania program can allow the city of Bethlehem, the Bethlehem Area School District and Northampton County to grant a tax break on new construction that declines and then disappears over 10 years.
The goal behind LERTAs is to promote construction now to build the future tax base.
After three years of stalled commercial dialogue between the two biggest democracies in the world, India and the US, on 10 March re-launched their commercial dialogue to discuss supply chain issues and agree upon a semiconductor partnership initiative.
After three years of stalled commercial dialogue between the two biggest democracies in the world, India and the US, on 10 March re-launched their commercial dialogue to discuss supply chain issues and agree upon a semiconductor partnership initiative.
US Commerce Secretary Gina Raimondo and Union Minister of Commerce and Industry Piyush Goyal jointly addressed a press conference on Friday at the India-USA Commercial Dialogue.
US Commerce Secretary Gina Raimondo and Union Minister of Commerce and Industry Piyush Goyal jointly addressed a press conference on Friday at the India-USA Commercial Dialogue.
The dialogue focused on several emerging areas, including building supply chains, facilitating clean energy cooperation, talent development, and post-pandemic economic recovery for start-ups and small businesses.
The dialogue focused on several emerging areas, including building supply chains, facilitating clean energy cooperation, talent development, and post-pandemic economic recovery for start-ups and small businesses.
Both the dignitaries discussed India-US strategic partnership, as well as economic and commercial engagement between the two countries, including through the Initiative on Critical and Emerging Technology (iCET) and the Indo-Pacific Economic Framework (IPEF).
Both the dignitaries discussed India-US strategic partnership, as well as economic and commercial engagement between the two countries, including through the Initiative on Critical and Emerging Technology (iCET) and the Indo-Pacific Economic Framework (IPEF).
During the meeting, the minister and the secretary acknowledged that the bilateral goods and services trade has almost doubled since 2014, surpassing $191 billion recorded in 2022. Both sides welcomed further steps to enhance their commercial collaboration and tap into market potential across multiple sectors, and also enable an environment for investment by small and medium-sized industries (MSME) and startups.
During the meeting, the minister and the secretary acknowledged that the bilateral goods and services trade has almost doubled since 2014, surpassing $191 billion recorded in 2022. Both sides welcomed further steps to enhance their commercial collaboration and tap into market potential across multiple sectors, and also enable an environment for investment by small and medium-sized industries (MSME) and startups.
Secretary Raimondo applauded the steps undertaken under the National Infrastructure Pipeline and PM Gati Shakti National Master Plan.
Secretary Raimondo applauded the steps undertaken under the National Infrastructure Pipeline and PM Gati Shakti National Master Plan.
The minister and the secretary welcomed the US-India initiative on Critical and Emerging Technology (iCET). The Ministers also noted India’s interest in partnering with the United States in developing a secure pharmaceutical manufacturing base and diversifying supply chains for critical and strategic minerals (including rare earths).
The minister and the secretary welcomed the US-India initiative on Critical and Emerging Technology (iCET). The Ministers also noted India’s interest in partnering with the United States in developing a secure pharmaceutical manufacturing base and diversifying supply chains for critical and strategic minerals (including rare earths).
Both countries also signed a Memorandum of Understanding (MoU) on semiconductor supply chain and innovation partnership to promote cooperation in the segment. This comes just a week after reports of Apple Inc. partner Foxconn Technology Group planning to invest about $700 million on a new plant in Bengaluru to ramp up local production.
Both countries also signed a Memorandum of Understanding (MoU) on semiconductor supply chain and innovation partnership to promote cooperation in the segment. This comes just a week after reports of Apple Inc. partner Foxconn Technology Group planning to invest about $700 million on a new plant in Bengaluru to ramp up local production.
“Recognizing the importance of U.S. and Indian markets to the global electronics industry, Secretary Raimondo and Minister Goyal intend to utilize the Commercial Dialogue to enhance public and private efforts to promote industry cooperation in the semiconductor sector. These efforts will identify opportunities for growth and challenges to address in order to ensure that US and Indian semiconductor industries develop stronger connections, complementary ecosystems, and a more diverse supply chain for semiconductors,” said a joint statement issued by the Ministry of Commerce & Industry.
“Recognizing the importance of U.S. and Indian markets to the global electronics industry, Secretary Raimondo and Minister Goyal intend to utilize the Commercial Dialogue to enhance public and private efforts to promote industry cooperation in the semiconductor sector. These efforts will identify opportunities for growth and challenges to address in order to ensure that US and Indian semiconductor industries develop stronger connections, complementary ecosystems, and a more diverse supply chain for semiconductors,” said a joint statement issued by the Ministry of Commerce & Industry.
Both ministers recognized that small businesses and entrepreneurs are the lifeblood of the US and Indian economies and there is need to facilitate collaboration between the SMEs of the two countries and to foster innovation ecosystems that facilitate their post-pandemic economic recovery and growth. In this context, Both sides announced the launch of a new Working Group on Talent, Innovation and Inclusive Growth under the Commercial Dialogue.
Both ministers recognized that small businesses and entrepreneurs are the lifeblood of the US and Indian economies and there is need to facilitate collaboration between the SMEs of the two countries and to foster innovation ecosystems that facilitate their post-pandemic economic recovery and growth. In this context, Both sides announced the launch of a new Working Group on Talent, Innovation and Inclusive Growth under the Commercial Dialogue.
This will further the cooperation on Start-ups, SMEs, Skill Development and Entrepreneurship including in digital and emergent technologies. This working group would also support the efforts under iCET, particularly in identifying specific regulatory hurdles that hinder cooperation and fostering of greater connectivity between our innovation ecosystems (including tech start-ups).
This will further the cooperation on Start-ups, SMEs, Skill Development and Entrepreneurship including in digital and emergent technologies. This working group would also support the efforts under iCET, particularly in identifying specific regulatory hurdles that hinder cooperation and fostering of greater connectivity between our innovation ecosystems (including tech start-ups).
The two countries also relaunched the travel and tourism working group to strengthen cooperation between them. “Re-launched the Travel and Tourism Working Group to continue the progress from before the pandemic and to also address the many new challenges and opportunities to create a stronger travel and tourism sector. The activities of this working group also support SMEs as travel & tourism sector comprises SMEs such as hotels, restaurants, travel agents, handicrafts and so on,” the joint statement reads.
The two countries also relaunched the travel and tourism working group to strengthen cooperation between them. “Re-launched the Travel and Tourism Working Group to continue the progress from before the pandemic and to also address the many new challenges and opportunities to create a stronger travel and tourism sector. The activities of this working group also support SMEs as travel & tourism sector comprises SMEs such as hotels, restaurants, travel agents, handicrafts and so on,” the joint statement reads.
Raimondo praised India for its incredible culture, and thanked Goyal for hosting the US delegation and showcasing the nation’s culture. She said it was an “incredibly opportunity” for her to experience Indian culture, making the country a special place.
Raimondo praised India for its incredible culture, and thanked Goyal for hosting the US delegation and showcasing the nation’s culture. She said it was an “incredibly opportunity” for her to experience Indian culture, making the country a special place.
Both countries also launched the Standards and Conformance Cooperation Program that will be carried out in partnership between US’s American National Standard Institute (ANSI) and India’s Bureau of Indian Standards (BIS) towards standards cooperation.
Both countries also launched the Standards and Conformance Cooperation Program that will be carried out in partnership between US’s American National Standard Institute (ANSI) and India’s Bureau of Indian Standards (BIS) towards standards cooperation.
Meanwhile, EAM and Secretary Raimondo launched “strategic trade dialogue” focusing which will address export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between the two countries. The Strategic Trade Dialogue will address export controls, and ways of enhancing high-technology commerce and facilitating technology transfer between the two countries.
Meanwhile, EAM and Secretary Raimondo launched “strategic trade dialogue” focusing which will address export controls, explore ways of enhancing high technology commerce, and facilitate technology transfer between the two countries. The Strategic Trade Dialogue will address export controls, and ways of enhancing high-technology commerce and facilitating technology transfer between the two countries.
Also, US side to send a senior government official-led Clean Energy and Environmental Technology Business Development Mission to India in 2024.
Also, US side to send a senior government official-led Clean Energy and Environmental Technology Business Development Mission to India in 2024.
“The trade mission would be an opportunity to further foster US-Indian business partnerships in grid modernization and smart grid solutions, renewable energy, energy storage, hydrogen, liquefied natural gas, and environmental technology solutions,” the joint statement reads.
“The trade mission would be an opportunity to further foster US-Indian business partnerships in grid modernization and smart grid solutions, renewable energy, energy storage, hydrogen, liquefied natural gas, and environmental technology solutions,” the joint statement reads.
Both sides also pledged to work together in the Global Biofuels Alliance and in the development and deployment of hydrogen technologies.
Both sides also pledged to work together in the Global Biofuels Alliance and in the development and deployment of hydrogen technologies.
The two sides made announcement regarding US-India Energy Industry Network (EIN) as a broad platform for facilitating US industry involvement in the Clean EDGE Asia initiative, the US government’s signature initiative to grow sustainable and secure clean energy markets throughout the Indo-Pacific region.
The two sides made announcement regarding US-India Energy Industry Network (EIN) as a broad platform for facilitating US industry involvement in the Clean EDGE Asia initiative, the US government’s signature initiative to grow sustainable and secure clean energy markets throughout the Indo-Pacific region.
Both sides expressed interest in working together in developing next generation standards in telecommunications, including 6G.
Both sides expressed interest in working together in developing next generation standards in telecommunications, including 6G.
Secretary Raimondo welcomed India’s ongoing G20 Presidency. The ministers expressed interest to look forward to the next Commercial Dialogue meeting, to be held in Washington, DC, in 2024 contributing towards a growing strategic and economic relationship between India and the United States.
Secretary Raimondo welcomed India’s ongoing G20 Presidency. The ministers expressed interest to look forward to the next Commercial Dialogue meeting, to be held in Washington, DC, in 2024 contributing towards a growing strategic and economic relationship between India and the United States.
The US is India’s largest exporter and trade partner, while India is the ninth largest trading partner for the US. The bilateral merchandise trade during April-January stood at $108.43 billion. Both nations aim to achieve bilateral trade of $500 billion by 2025.
The US is India’s largest exporter and trade partner, while India is the ninth largest trading partner for the US. The bilateral merchandise trade during April-January stood at $108.43 billion. Both nations aim to achieve bilateral trade of $500 billion by 2025.
The US is also the third biggest investor in India with a cumulative foreign direct investment (FDI) inflow of $56,753 million from April 2000 to September 2022.
The US is also the third biggest investor in India with a cumulative foreign direct investment (FDI) inflow of $56,753 million from April 2000 to September 2022.
The first funding opportunity is for projects to construct, expand and/or modernize commercial facilities to produce leading-edge, current-generation and mature-node semiconductors. This includes both front-end wafer fabrication and back-end packaging, testing and assembly. Funding will include direct funding (through grants and cooperative agreements), loans and loan guarantees, and there is no fixed amount for how much any given project can receive. The funding opportunity for equipment facilities and semiconductor materials will be released in the late spring, and one for research and development facilities will be released this fall.
The application process for commercial facilities incentives will be rigorous and highly competitive—with program administrators evaluating applications against adherence to baseline eligibility requirements but also against six priority areas: (1) economic and national security; (2) commercial viability; (3) financial strength; (4) project technical feasibility and readiness; (5) workforce development; and (6) broader impacts, including future planned investments in the domestic semiconductor industry, community investment, creation of opportunities for minority-owned, veteran-owned and women-owned businesses, climate and environmental responsibilities, and commitment to using iron, steel and construction materials produced in the United States.
Through this initial funding announcement along with the future expected announcements, a wide range of businesses stand to benefit from CHIPS Act dollars, including not only semiconductor manufacturers, equipment and materials manufacturers and R&D facilities, but also suppliers, vendors, investors and end-users. Further, while the funding is targeted towards manufacturing and R&D facilities, fabless semiconductor firms may consider joining consortiums with manufacturers and others to take advantage of downstream benefits.
For eligible chips manufacturers—along with others in the semiconductor ecosystem—now is a critical time to assess the opportunity and move forward with an application. Key details are included below.
What is the CHIPS and Science Act?
In August 2022, Congress passed the bipartisan CHIPS Act which directs $280B in spending over ten years, with the majority of this funding provided for scientific and R&D objectives through programs administered by the National Science Foundation, Department of Energy and other agencies. Of these funds, $52.7B is directed to boost the domestic semiconductor industry, including $39B in semiconductor incentives, $13B in R&D and workforce development, and $500M to strengthen global supply chains. Another $24B is provided through tax credits for chip production.
$39B in Semiconductor Manufacturing Incentives
The CHIPS Act allocates $39B for incentives—in the form of grants, cooperative agreements, loans and loan guarantees—for semiconductor manufacturing. The funding—administered by the CHIPS Program Office within the U.S. Department of Commerce—will be distributed to (1) attract large-scale investments in advanced technologies such as leading-edge logic and memory, and (2) incentivize expansion of manufacturing capacity for mature and other types of semiconductors.
The funds will be distributed through a series of competitive funding opportunities. The first opportunity—released on February 28, 2023—is for commercial fabrication facilities. Additional funding opportunities will be available for equipment and materials manufacturing facilities and R&D facilities.
Baseline Eligibility Criteria
Funding will be available to private companies, non-profit organizations and consortia thereof. Eligible organizations must be able to substantially finance, construct or expand a U.S. facility that fabricates, assembles, tests, packages, produces or researches either semiconductors, semiconductor materials, or equipment used in the manufacturing of semiconductors. However, CHIPS Program Office guidance—and the specifications set forth in the first funding opportunity announcement—make clear that baseline eligibility is only the first step. Ultimate success in securing incentives will hinge on a host of other factors. Further, FAQs clarify that the eligibility of foreign entities to apply for and receive CHIPS incentives will be at the sole discretion of the Commerce Department. Foreign companies are advised to seek guidance from the CHIPS Program Office pursuant to submitting a statement of interest.
Funding Opportunity—Commercial Fabrication Facilities
The first funding opportunity—announced on February 28, 2023—seeks applications for projects involving the construction, expansion or modernization of commercial facilities for the fabrication of leading-edge, current- generation and mature-node semiconductors. This includes both front-end wafer fabrication and back-end assembly, testing and packaging.
This funding opportunity will provide direct funding (through grants and cooperative agreements), loans and loan guarantees. There will be no fixed amount for how much direct funding a project can receive, but most direct funding awards are expected to range between five and 15% of project capital expenditures. There is similarly no fixed limit on loans or loan guarantees, and applicants may request loans or loan guarantees to provide debt financing that is not available on comparable terms on the private market.
The Application Process
The funding announcement described a five-part application process including (1) a statement of interest, (2) a pre-application, (3) a full application, (4) CHIPS Program Office due diligence, and (5) award preparation and issuance.
Pre-applications and full applications for leading-edge facilities will be accepted on a rolling basis beginning March 31, 2023. Pre-applications for current-generation, mature-node and back-end production facilities will be accepted on a rolling basis beginning May 1, 2023, and full applications for these categories will be accepted beginning June 26, 2023. Statements of interest are accepted immediately.
Evaluation Priorities
Applications will be reviewed through the lens of six priority areas:
- Economic and National Security: Incentives will be directed to projects that increase domestic semiconductor production and strengthen global supply chains, as well as projects that further national security interests by, for example, providing the Department of Defense with access to onshore access to semiconductors.
- Commercial Viability: Incentives will go to applicants with plans for reliable cash flows and continued investment to make sure the facility remains active for the long-term.
- Financial Strength: Applicants must submit a detailed financial model for projects and maximize private-sector contributions.
- Technical Feasibility and Readiness: Applicants must provide clear plans, including major construction and operational milestones and construction rights and permits. Projects that can meet environmental and permitting requirements in a timely manner will be prioritized.
- Workforce Development: Applicants must commit to developing and maintaining a highly skilled, diverse workforce, including by hiring economically disadvantaged workers. Applicants are encouraged to engage government organizations, educational institutions, unions, industry associations and others to meet workforce needs.
- Broader Impacts: A CHIPS program goal is to extend the incentives benefit through communities. As such, projects will be evaluated based on applicants’ plans to commit to future investment in the semiconductor industry; create opportunities for minority-owned, women-owned and veteran-owned businesses; demonstrate climate and environmental responsibility; invest in communities by addressing barriers to economic inclusion; and commit to using iron, steel and construction materials produced in the U.S.
Additional Requirements
Applicants must:
- Demonstrate that the funding will incentivize facilities and equipment in the United States that would not occur otherwise.
- Be offered an incentive from a state or local government.
- Secure commitments from training entities and institutions of higher education to provide workforce training.
- Agree not to use CHIPS funds for dividends or stock buybacks. All applicants must further detail their intentions with respect to stock buybacks over five years.
Applicants seeking more than $150M in funding must further:
- Submit a plan to provide affordable child care for workers.
- Share cash flows or returns that exceed the applicant’s projections by an agreed-upon threshold with the federal government.
Restrictions on Investments in China
Pursuant to the CHIPS Act, an awardee “may not engage in any ‘significant transaction’. . . involving the ‘material expansion’ of ‘semiconductor manufacturing capacity’ in China or any other foreign country of concern” over the ten-year period after receiving an award. The CHIPS Program Office is expected to issue additional detail on the specific scope of this restriction.
This restriction on Chinese investments covers both the “covered entity” receiving the federal funding, as well as that entity’s “affiliated group,” which means one or more chains of includible corporations connected through stock ownership with a common parent. Generally, at least 80% of stock, by both voting power and value, must be owned by the parent or by another corporation in the chain.
The restrictions on Chinese investments do not apply to (i) existing facilities or equipment used to manufacture legacy semiconductors or (ii) the material expansion of legacy semiconductor manufacturing that predominantly serves the market of a foreign country of concern. A “legacy semiconductor” is defined as a “semiconductor technology that is of the 28-nanometer generation or older for logic.”
This restriction creates a critical decision point for companies that do business in both the United States and China. Indeed, the CHIPS Act incentives are designed to serve as a catalyst for companies to choose the United States for all large-scale investments in the near-term.
The Advanced Manufacturing Investment Credit
Applicants are encouraged to claim the Advanced Manufacturing Investment Credit, which provides a federal tax credit for qualifying capital investments in a facility for which the primary purpose is the manufacturing of semiconductors or semiconductor manufacturing equipment.
State and Local Incentives
Under the CHIPS Act, applicants must be offered a state and local incentive to support their project. The intent behind this rule is to ensure that projects benefit for a range of support, not just federal incentives. In practice, this requirement means that applicant success will be tied to the availability and level of support provided by their state, setting off furious competition across the country.
Many states—and even local governments—have begun announcing various incentive packages, ranging from state and local tax credits to state-run grant programs to support workforce development initiatives. A key issue will be how states with a high population of eligible applicants—like California—will respond to the requirement.
Next Steps for Applicants
This first funding opportunity marks a pivotal moment for companies seeking to invest in semiconductor manufacturing to benefit from CHIPS Act dollars. Because applications will be evaluated on a rolling basis it is crucial for interested companies to start preparing statements of interest and application packages. Further, companies must carefully hone their application packages to meet the nuanced application requirements and rigorous evaluation process. This will require interfacing with industry partners, local, state, federal and other institutional stakeholders, to secure required commitments.
Please contact the authors of this alert or any member of Pillsbury’s Public Policy team if you have questions about the application process or how to position your company for a successful outcome.