Chips Defense Industrial Base Memorandum

The Commerce and Defense Departments announced yesterday that they have signed a Memorandum of Agreement to expand collaboration to strengthen the US semiconductor defense industrial base.

The agreement will increase information sharing between the departments to facilitate close coordination on the CHIPS for America’s incentives program, ensuring that their respective investments position the United States to produce semiconductor chips essential to national security and defense programs.

The MOA is a crucial step forward in implementing the bipartisan CHIPS and Science Act, a key part of President Biden’s Investing in America agenda. It will advance this agenda to strengthen manufacturing and supply chains here at home, solidify America’s global leadership and protect long-term national security.

By aligning priorities and decision-making, the MOA will enable a more synchronized approach to promoting a robust and resilient semiconductor supply chain, according to the departments. Specific areas of consultation identified in the MOA include sharing information on the semiconductor needs of the Defense Industrial Base, the investment priorities of DoD and each military service, the existing and planned investments to sustain mature and legacy chip capabilities for current defense programs and funding to support emerging technologies that are critical to future US national security programs.

The agreement also will facilitate collaboration on potential investment applications to ensure Commerce and Defense are making complementary decisions that maximize federal investments under the CHIPS Incentive Program and DoD Defense Production Act and Industrial Base Analysis and Sustainment funds.

[Commerce Announcement]