The US Department of Commerce on Tuesday announced the release of its implementation stategy for the $50 billion (roughly Rs. 3,99,000 crore) CHIPS (Creating Helpful Incentives to Produce Semiconductors) Act signed into law by US President Joe Biden last month. The bipartisan bill is designed to subsidise the cost of manufacturing chips in the US, as the government attempts to create new jobs in the chip manufacturing sector and ramp up reseach and development of chips to help the US compete with other countries.

On Tuesday, the US Department of Commerce released its strategy to implement the new CHIPS and Science Act. The CHIPS for America program will be housed within the Department’s National Institute of Standards and Technology (NIST), according to the federal government department, which outlined the primary objectives of the legislation.

According to the department’s implementation strategy, the CHIPS for America program will have four primary goals. The first is the establishment and expansion of domestic production of leading-edge semiconductors in the US, while the second goal will be to create a reliable and sufficient supply of mature node semiconductors.

The Department of Commerce is also looking to invest in research and development for the next generation of chipmaking in the US. Finally, it aims to create “tens of thousands” of manufacturing jobs in the US, as well as “hundreds of thousands” of construction jobs. These include jobs for women, people of colour, veterans and people who live in rural areas, according to the strategy.

The US Department of Commerce said that specific application guidance for the CHIPS for America program will be released through funding documents, by early February 2023. It will grant awards and loans on a rolling basis once applications are processed.