Semiconductors: Commerce Needs Plan to Meet CHIPS for America R&D Requirements | U.S. GAO

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GAO-26-109121

Published: Aug 06, 2026. Publicly Released: Aug 06, 2026.

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Fast Facts

Semiconductors (or chips) are critical in most industries. To support the economy and ensure a reliable U.S. supply, in 2021, Congress required the Commerce Department to incentivize chip development.

Our first report in this series found that Commerce had awarded billions of dollars to 40 manufacturing projects. As of July 15, 2026, it had funded 49 projects.

But Commerce's research and development programs have stalled. The agency canceled most efforts, as they don't align with executive priorities. To prevent the U.S. from falling behind in global competitiveness, we recommended that Commerce plan how to meet statutory R&D requirements.

Latex-gloved fingers holding a semiconductor

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Highlights

What GAO Found

The Department of Commerce has continued to implement the semiconductor facilities and equipment incentives program, and awardees have made progress on milestones. Since July 2025, Commerce has awarded nine new projects, for a total of 49 projects across 24 companies. When setting award amounts, Commerce considered new factors as compared to prior awards, such as whether the company would provide equity in exchange for funding. Commerce also amended existing awards for 14 companies. As of April 2026, awardees had completed all required milestones by their due dates, but some milestones had fallen behind anticipated schedules. Commerce has disbursed $13.1 billion to awardees—approximately 42 percent of the total $31.5 billion in direct funding.

Commerce initially established key advanced microelectronics R&D activities but later canceled awards representing $7.8 billion of the $11 billion appropriated. The agency significantly revised its approach to align with current administration priorities but did not have a plan or timeline for fully meeting statutory requirements—specifically those related to the National Semiconductor Technology Center, National Advanced Packaging Manufacturing Program (NAPMP), and Industrial Advisory Committee. For example, Commerce canceled the center’s award in 2025, but its plan to reestablish the center is not sufficiently detailed to show how it will meet relevant statutory requirements. Commerce also canceled or paused NAPMP awards and has not renewed the advisory committee charter. Without a detailed plan for reestablishing these entities in line with statute, Commerce may miss...