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Semiconductor manufacturers looking to get funding under the CHIPS and Science Act will need to give detailed revenue and profit projections, The Wall Street Journal (subscription) reports.

What’s happening: The legislation, signed into law by President Biden last August, “provides $53 billion to help restore U.S. manufacturing might in semiconductors. Companies building leading-edge chip factories in the U.S. can begin applying for the funds Friday. The application process for companies looking to build current generation and mature technology facilities opens June 26.”

• Financial statements “will be a critical part of the CHIPS program evaluation” and will be used in determining project feasibility, the Commerce Department said in new guideline developed by the CHIPS and Science Act investment team.

What it means: Applicants for the funds are expected to get specific and “granular” in their financial estimates regarding revenue, overhead and other metrics.

• Part of the reason is “to make sure taxpayer funds are spent efficiently.”
• Another is the profit-sharing provision in the program, which asks that recipients of the money share a certain percentage of profits if revenues from their new chip-making facilities “significantly exceed the projections.”

The NAM’s take: “The CHIPS and Science Act will boost the competitiveness of both manufacturers and the U.S. at large,” said NAM Director of Human Resources and Innovation Policy Julia Bogue. “Acceptance of applications for this first round of funding marks an important step in actualizing this legislation.”