CHIPS Act Funding Round 3: $4.2 Billion for AI-Enabled Semiconductor Facilities

The Commerce Department announced the third round of CHIPS and Science Act awards on Tuesday, directing $4.2 billion to seven semiconductor manufacturing projects that integrate AI-driven process control and quality assurance systems. The awards signal a shift in government industrial policy from subsidizing capacity to subsidizing intelligence.

The largest single award — $1.4 billion — goes to Texas Instruments for a new 300mm analog chip fab in Sherman, Texas, that will use AI-powered process control across all manufacturing stages. GlobalFoundries received $890 million for an expansion of its Malta, New York facility focused on automotive and industrial chips with in-line AI inspection. Microchip Technology, Wolfspeed, and three smaller firms split the remaining $1.9 billion.

What's notable is the AI requirement. All seven recipients must demonstrate that AI systems are integrated into manufacturing processes — not just IT infrastructure. The Commerce Department's evaluation criteria explicitly weighted "AI-enabled yield optimization" and "predictive quality systems" in scoring applications.

"This is the government saying that a modern semiconductor fab isn't just clean rooms and lithography machines — it's an AI system that happens to make chips," said Chris Miller, author of Chip War and a professor at Tufts University.

The awards also include workforce development requirements: each recipient must partner with at least one community college or technical training program to develop curriculum for AI-augmented semiconductor manufacturing roles.