Title page 1

Contents 3

Highlights 2

Letter 5

Background 6

Semiconductors 6

Semiconductor Incentives Program 7

Advanced Microelectronics R&D Programs 8

Commerce and Awardees Have Continued to Make Progress on Incentives Awards and Projects 9

Commerce Awarded Nine Additional Projects Since July 2025 9

Commerce Amended Awards for Most Recipients 13

Commerce Disbursed $13 Billion as of April 2026 16

Commerce Drew on a Wide Range of Federal Programs to Complement Awards 18

Commerce Drew on Other Programs to Design and Implement Efforts 18

Commerce Drew on Other Programs to Provide Guidance to Companies 20

Commerce Significantly Revised Its R&D Approach but Has Not Determined How It Will Meet Statutory Requirements 21

National Semiconductor Technology Center 24

National Advanced Packaging Manufacturing Program 28

NIST Microelectronics Research Program 29

Manufacturing USA 30

Industrial Advisory Committee 31

Conclusions 33

Recommendations for Executive Action 33

Agency Comments 33

Appendix I. Comments from the Department of Commerce 39

Appendix II. GAO Contact and Staff Acknowledgments 41

Table 1. Semiconductor Incentives Awards, from August 2025 to July 15, 2026 10

Table 2. Selection Criteria for Semiconductor Incentives Awards, from August 2025 to July 15, 2026 12

Table 3. Commerce Efforts to Meet Statutory Requirements for the National Semiconductor Technology Center (NSTC) 26

Figure 1. Semiconductor Project Funding by Location, as of July 15, 2026 11

Figure 2. Semiconductor Incentives Award Projects' Anticipated Completion Dates, as of April 2026 14

Figure 3. Progress on Semiconductor Incentives Award Project Milestones, as of April 2026 17

Figure 4. Changes to Commerce's Advanced Microelectronics R&D Activities, as of July 15, 2026 22