Today, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) seeking proposals from eligible applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry. Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. The CHIPS for America Program anticipates up to approximately $285 million for a first-of-its-kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes. The CHIPS Manufacturing USA institute is the first Manufacturing USA institute launched by the Department of Commerce under the Biden Administration.
Unlike traditional, physical research models, digital twins can exist in the cloud, which enables collaborative design and process development by engineers and researchers across the country, creating new opportunities for participation, speeding innovation, and reducing costs of research and development. Digital twin-based research can also leverage emerging technology like artificial intelligence to help accelerate the design of new U.S. chip development and manufacturing concepts and significantly reduce costs by improving capacity planning, production optimization, facility upgrades, and real-time process adjustments.
“Digital twin technology can help to spark innovation in research, development, and manufacturing of semiconductors across the country – but only if we invest in America’s understanding and ability of this new technology,” said Secretary of Commerce Gina Raimondo. “This new Manufacturing USA institute will not only help to make America a leader in developing this new technology for the semiconductor industry, it will also help train the next generation of American workers and researchers to use digital twins for future advances in R&D and production of chips.”
“Under President Biden’s leadership, we’re writing a new chapter in semiconductor manufacturing in America,” said Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy. “CHIPS R&D is about making sure American manufacturers can continue to succeed and thrive. Digital twin technology can accelerate the costly and time-consuming work to develop the next generation of robust manufacturing for this extraordinarily complicated product.”
Funded activities are expected to include, but not necessarily be limited to operational activities to run the Institute; basic and applied research related to semiconductor digital twin development; establishing and supporting shared physical and digital facilities; industry-relevant demonstration projects; and digital twin-related workforce training.
“Digital twin technology will help transform the semiconductor industry,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio. “This historic investment in the CHIPS Manufacturing USA institute will help unite the semiconductor industry to unlock the enormous potential of digital twin technology for breakthrough discoveries. This is a prime example of how CHIPS for America is bringing research institutions and industry partners together in public private partnership to enable rapid adoption of innovations that will enhance domestic competitiveness for decades to come.”
The CHIPS Manufacturing USA institute is expected to use integrated physical and digital assets to tackle important semiconductor-industry manufacturing challenges. By establishing a regionally diverse network, the institute will foster a collaborative environment to significantly expand innovation, bring tangible benefits to both large and small to mid-sized manufacturers, engage diverse communities, and ensure robust nation-wide workforce training.
The CHIPS Manufacturing USA institute will join an existing network of seventeen Manufacturing USA institutes designed to secure the future of U.S. manufacturing through innovation, education, and collaboration.
Dr. Eric Forsythe, director, and Dr. Michael McKittrick, deputy director, CHIPS Manufacturing USA Program, will provide a briefing on details of the NOFO on May 8, 2024, at 4:00 pm ET. Webinar participants must register in advance.
On May 16, 2024, the CHIPS Manufacturing USA Program will host a one-day hybrid meeting for potential applicants for this funding opportunity. For more information and to register for this event, please visit chips.gov.
 
 
 
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Keynote Address by Kristalina Georgieva, IMF Managing Director, at the Annual EU Budget Conference 2024.
What a pleasure to be here today, surrounded by friends, on a brief stopover between Saudi Arabia and Chile. Whenever I’m in Brussels I feel I’m at home.
And home it was for me, for seven years, working at the European Commission. Someone famous may have had seven years in Tibet, I had my seven years in Brussels—including serving as Vice President for Budget and Human Resources and hosting the Annual Budget Conference.
I know it is getting to be known in short form as ABC. I assure you, I am fully aware the EU budgetary process goes from A all the way to Z—and it is made simple only by the tireless work of the fantastic DG Budget team!
Before I dive in, one confession. I actually love budgets! To me, budgets are so much more than just numbers. They tell a story. They reveal what the true priorities are. You could say they reflect truth!
***
My remarks today will be about the importance of budgetary cohesion in Europe, about the efficiency of joint spending to solve joint problems. I want to reflect on how Europe can come together to provide essential, common public goods.
My remarks will have three parts. First, some reflections on the global environment, a tough place for trading nations. Second, some words on Next Generation EU, noting its successes so far and reflecting on initial lessons. And then, to conclude, a brief outline of my thoughts on the way forward.
Let me jump in.
***
The global environment. When we stare out at the horizon, what do we see?
I see a hint of sunshine. But I also see a dull grey sky and some dark clouds.
Let me start with the sunshine. After a global burst of inflation to levels many people have never seen in their lifetimes, it looks like the ECB’s tight monetary policy is doing its work.
This is something I need to say carefully because it’s not over yet. But, yes, it looks promising: inflation down from its disturbingly high peaks and no deep recessions in Europe.
Never forget though, that the last mile can be the hardest. No longer will the major central banks be marching in lockstep, as they did during the recent rate-hiking cycle. No. From now on, each currency zone will have to chart its own path. An interest rate divergence looms, and maybe some exchange rate movements too.
We save the champagne for later.
Next, the grey skies. Two problems:

Problem one: growth. Our World Economic Outlook shows the global economy converging back to a rather weak trend rate of growth. Yes, the US economy still looks like it’s firing on all cylinders, but that is unlikely to last. In China, real-estate issues weigh on the outlook. In Europe, productivity growth lags behind, reflecting much less private investment in new technologies than in the United States. This is why we say it is vital to pursue structural reforms and scale-up innovation and investment. Europe needs faster productivity growth, and that means reforms—including transformational ones in the energy and digital arenas, and the completion of the single market.
Problem two: debt. After two massive shocks—the pandemic and the energy-supply shock caused by Russia’s invasion of Ukraine—many countries are shouldering very heavy public debt burdens. This is why we say many countries must now pursue judicious, well-articulated medium-term fiscal consolidation to rebuild buffers—appropriately tailored to country specifics, of course.

Low growth, high debt. Not a great place from which to begin a big push to develop clean energy supply and fight climate change. But let us be clear: if we do not win the fight against climate change, all of humanity together, we will all suffer.
Dark clouds. Truly, we know how to be our own worst enemies. I am speaking of geopolitics. Does humankind march forward with a united front? Far from it.
Instead, we live in a period of tensions, where bilateral fights and transactional approaches threaten the rules-based world order that has served us so well since the end of the Second World War.
My job as head of the IMF is to defend and promote a well-functioning, rules-based, and integrated global economy—in which trade and capital flows are the transmission lines of prosperity. For five years I have done so, and—mark my words—I will continue to do it in my second term.
We at the IMF are worried about the bilateral trade fights, the gaming of the rules, the raising of trade barriers, the economic coercion. They are harmful to global growth and hurt our capacity to solve global problems. We do not make national policy—and certainly not national security policy. What we do is we take the vital signs of our members’ economies and quantify the costs and the benefits of the choices our members make. We hold up a mirror.
And my goodness. Right now, the reflection in the mirror is not pretty.
One example. IMF research shows that since Russia’s invasion of Ukraine, trade growth between countries in politically distant blocs has slowed by 2.4 percentage points more than trade among those that are closely aligned. This will have costs.
The policy message is clear. Global economic policymaking needs a calm voice, a cool mind, a steady temperament.
As I will argue, the world needs a strong and cohesive Europe. To defend the rules-based order. To show the world how much is gained by working together. To lead by example.
Let me go to Part II.
***
The European Union. Twenty-seven sovereign states in a marriage like no other. A vast body of shared law. A commitment to democracy. A clear separation of power into national competences and central competences. Four freedoms—the freedom of movement of goods, services, people, capital. A single market that, no matter how imperfect, actually works, helping bring ever-greater prosperity to almost 450 million people. Convergence. A union of hope.
Four further things to note:

One, Europe is a trading power. Relative to GDP, the EU exports and imports a lot. More trade openness than the United States. In some EU countries, much more. As such, one can get knocked around by events abroad. To handle this, Europe needs to be strong.
Two, much of Europe’s strength derives from its cohesion. Since the Schumann Declaration of May 1950 proposing the European Coal and Steel Community, 22 countries have been welcomed into the union. Today, 20 EU member states share a common currency. After the dollar, the euro is the world’s Number Two reserve currency. Not bad for only 25 years!
Three, the EU budget sits at the heart of European cohesion. For decades, the Multiannual Financial Framework—the MFF—has channeled a steady supply of fuel into Europe’s convergence engine. I think of the structural and cohesion funds and all the good they have done for “the country I know best.” And for the rest.
Four, when we think of fiscal policy, we cannot forget that the EU is not one country. No, unlike the other two superpowers, the EU has 27 national debt stocks. There is no mandate to build a “United States of Europe.” That is the democratic will of the people.

Nonetheless, in the early months of 2020, as a new virus hit us with no regard for borders, something new was born.
I refer, of course, to Next Generation EU.
If you ask me, July 2020 will go down in history as a time of profound European cohesion. Finding a solution that could reasonably be deemed consistent with the Treaties, leaders came together to craft a powerful European response to a common and grave problem.
Basically, NGEU represented a major expansion of the EU budget, financed by common borrowing, with disbursements running until the end of 2026.
This was unprecedented. Up to 800 billion euros in bond-financed EU support to national budgets. Not only to recover from the pandemic, but to help finance digitalization and the Green Deal and help incentivize much-needed structural reforms to lift potential growth. To send a deliberate signal of solidarity, including solidarity with the tourist economies of Southern Europe so hard-hit by the pandemic, as well as the less-wealthy member states.
To show financial markets that the EU stands together as one. Remember, just the announcement of NGEU had a powerful calming effect on financial markets. The top credit rating. Debt management. A risk-management framework. A Chief Risk Officer—in fact, I see her here today!
On the expenditure side, I am delighted that NGEU has taken forward lessons from the times when I was responsible for the EU budget. Back then, we introduced a framework for a Budget Focused on Results, to add coherence in three areas:

What to spend on—a focus on areas where the EU budget could have maximum added value. Cross-border infrastructure and humanitarian aid, to mention just two.
How to spend—not just grants, but private sector co-investment.
How to communicate—transforming the EU budget from something boring into something with a story.

I am very happy to see that many aspects of the Budget-for-Results strategy live on. NGEU has built on it by taking a direct performance-based approach, where disbursements to national budgets are made entirely based on actual milestones and targets achieved. X number of new wind turbines. Y number of new solar farms. Z number of new internet connections. And, perhaps most importantly of all, difficult but necessary structural reforms, incentivized by real money. And it is working. Lessons learned, lessons implemented.
So far so good.
***
So: what comes next?
It may not be as dramatic as a pandemic, but the challenges the EU faces going forward also shout out for a concerted response. In a time of geopolitical and economic uncertainties, policy choices will matter deeply. And these choices, in turn, will fundamentally shape the next MFF. In a time of higher interest rates and squeezed budgets, we still need to find ways to provide critical common public goods, and to do so cost-effectively.
One of the clearest cases for doing more together can be made in the areas of climate and energy security.
As a new IMF paper which comes out at the end of the month will show, Europe’s climate and energy security objectives are fully complementary. For those of you looking for a good read, please watch out for a paper called “The Energy Security Gains from Strengthening Europe’s Climate Action.”
As the recent gas-supply shock showed, as long as Europe is dependent on imported fossil fuels, it will remain vulnerable. In just one year—2022—the EU’s fossil-fuel import bill doubled, to over 5 percent of GDP. Greening Europe’s energy supply is the best solution for energy security. No one can shut off the wind or the sun!
We know, however, that the size of the additional investments needed to get from here to there—to net zero emissions by 2050 and to an energy-secure Europe—will be huge. Ensuring that this transition happens in the face of countless other fiscal pressures requires an intelligent approach.
Let’s think of the facts.
The cost of abating one ton of CO2 emissions today varies widely across countries and sectors. In some sectors, even if you could throw a ton of money at the problem, you might not change the result much due to supply constraints or the absence of alternative technologies.
It becomes vital to do what you can, wherever you can, as cost effectively as possible. This involves figuring out where you get the biggest bang for your buck in terms of reducing emissions. I see this as an area where, absolutely, there is a case for a strong, coordinated, centralized EU role.
Once again, the EU needs to come together—with a focus on helping to surge public and private investments to the most cost-effective and impactful areas.
There is an equally clear case for the EU to play a stronger role in areas where there are coordination failures, externalities, risks to the single market. I am thinking of the need to ensure that cross-border investment in electricity grids happens. I am thinking about the need to promote R&D in new “clean tech” for hard-to-abate sectors. I am thinking how important it is to do so without bending the state-aid rules and distorting the single market.
All of these efforts would also go a long way towards achieving the EU’s energy security goals. Win-win.
***
I will close with one simple, clear request—and I will say it loudly.
Please put in place a new Multiannual Financial Framework that is commensurate to the huge challenges that lie ahead. I ask you all: please do not just do what may be popular at home, do what is right for Europe!
Europe is stronger together, Europe is richer together, Europe matters more together.
Thank you all for your attention!
 
 
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On May 1, U.S. Secretary of Commerce Gina Raimondo celebrated World Trade Month by reaffirming the Biden-Harris Administration’s commitment to creating a more sustainable and inclusive economy through international trade.
“International trade is essential to our nation’s economic growth and helps Americans build more resilient businesses and communities,” said Secretary Raimondo. “Throughout World Trade Month, the Commerce Department will celebrate and reaffirm the Biden-Harris Administration’s enduring commitment to deepening our economic cooperation with allies, bolstering supply chain resilience, ensuring a level playing field for American workers and businesses, and attracting foreign direct investment that creates good-paying jobs in the United States.”
Observed every May, World Trade Month is an opportunity to highlight the many ways that international trade spurs innovation and strengthens the U.S. economy by creating pathways to prosperity across the country, including for small and medium sized enterprises, minority and women-owned businesses, and rural communities.
Over the course of the month, the U.S. Department of Commerce’s International Trade Administration (ITA) will both host and participate in a variety of in-person and virtual events, trade missions and programming to help U.S. businesses compete and win in the global economy.
The full calendar of World Trade Month events and other resources, including the National Export Strategy, can be found on trade.gov/world-trade-month.

 
 
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The European Commission received today the final recommendations of the High-Level Expert Group on scaling up sustainable finance in low-and middle-income countries (HLEG), in the presence of International Monetary Fund Managing Director Kristalina Georgieva.
Since 2022, emerging markets have experienced the worst ever capital outflows. The report provides concrete and innovative actions the Commission can take to mobilise private capital for sustainable investments in Global Gateway partner countries.
It outlines ten recommendations, with a focus on establishing an enhanced strategic engagement model with partner countries while ensuring increased flexibility in leveraging the EU’s external financial support instruments. Furthermore, the HLEG recommends innovative solutions to mobilise private capital and the increase of fiscal resources for sustainable investments, alongside measures to strengthen the size and depth of local sustainable capital markets.
The recommendations in the report feed into the wider debate on how to crowd in more private funding for sustainable development in partner countries through innovative models, in a context of constrained public funds and limits to concessional finance. For this to happen, partner countries need to continue working on developing their sustainable finance ecosystems and sustainable capital markets. In parallel, ongoing discussions of the mandates of multilateral development banks and development financial institutions will also be instrumental to bring the private sector on board.
European Commissioner for International Partnerships Jutta Urpilainen said: “Sustainable finance in low- and middle-income countries has to be scaled up given the current constraints on public finance and the limited availability of concessional finance. This has been a priority of my mandate under the Global Gateway investment strategy. This report sends a strong signal to our partners that the European Commission is committed to mobilise private capital at scale for sustainable investment for low- and middle-income countries.”
European Commissioner for Neighbourhood and Enlargement Olivér Várhelyi added: “Mobilising sustainable investments in our partner countries has been a key priority during my mandate. Our ambitious Economic & Investment Plans in the Western Balkans, Eastern Partnership, and Southern Neighbourhood have been instrumental in this respect. These projects are expected to foster nearly EUR 50 billion of investments in vital sectors covering our partners’ development needs: sustainable connectivity, human capital, competitiveness and inclusive growth, the twin green and digital transitions, and more. These recommendations will help our partners amid the current economic and geopolitical volatile landscape to develop further.”
International Monetary Fund Managing Director Kristalina Georgieva stated: “Constraints on public finance coupled with high interest rates worldwide are making it ever more difficult to close the investment gap for low- and middle-income countries. This report is a valuable contribution to the ongoing international reflection on how to mobilise private capital for these countries and resonates with the IMF’s own ongoing work in this area. The IMF will continue to work closely with the European Commission in supporting our partners in developing their capital markets, attracting private investors, and overcoming financial obstacles to secure a bright, more prosperous future for all.”
Background
The HLEG was mandated by the European Commission to identify the challenges and opportunities of sustainable finance in in low- and middle-income countries, and to provide recommendations on concrete and transformative actions the European Commission could take to support sustainable finance in these countries. It brought together a diverse group of international experts representing a broad range of expertise, both financial and non-financial, including EU cross-border investors, local investors, local businesses, civil society, standard-setters and academia. Established in September 2022, the HLEG held twelve meetings in both plenary and working group format. The recommendations are the output of over 18 months of dedicated work.
Global Gateway represents the European Union’s effort reduce the worldwide investment disparity and boost smart, clean and secure connections in digital, energy and transport sectors, and to strengthen health, education and research systems. It provides sustainable investment opportunities to enhance the prosperity and security of our global partners and Europe alike. The Global Gateway strategy embodies a collaborative approach that brings together the European Union, EU Member States, and European development finance institutions. The aim is to mobilise up to €300 billion in public and private investments from 2021 to 2027, creating essential links rather than dependencies, and closing the global investment gap.
 
 
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Announcements include draft guidance documents, a draft plan for international standards, and a new measurement program opening for public comment
The U.S. Department of Commerce announced today, following the 180-day mark since President Biden’s Executive Order (EO) on the Safe, Secure and Trustworthy Development of AI, several new announcements related to the EO. The Department’s National Institute of Standards and Technology (NIST) has released four draft publications intended to help improve the safety, security and trustworthiness of artificial intelligence (AI) systems. NIST has also launched a challenge series that will support development of methods to distinguish between content produced by humans and content produced by AI. In addition to NIST’s publications, Commerce’s U.S. Patent and Trademark Office (USPTO) is publishing a request for public comment (RFC) seeking feedback on how AI could affect evaluations of how the level of ordinary skills in the arts are made to determine if an invention is patentable under U.S. law, and earlier this year released guidance on the patentability of AI-assisted inventions.
“In the six months since President Biden enacted his historic Executive Order on AI, the Commerce Department has been working hard to research and develop the guidance needed to safely harness the potential of AI, while minimizing the risks associated with it,” said U.S. Secretary of Commerce Gina Raimondo. “The announcements we are making today show our commitment to transparency and feedback from all stakeholders and the tremendous progress we have made in a short amount of time. With these resources and the previous work on AI from the Department, we are continuing to support responsible innovation in AI and America’s technological leadership.”
The NIST publications cover varied aspects of AI technology: The first two are guidance documents designed to help manage the risks of generative AI — the technology that enables chatbots and text-based image and video creation tools — and serve as companion resources to NIST’s AI Risk Management Framework (AI RMF) and Secure Software Development Framework (SSDF), respectively. A third NIST publication offers approaches for promoting transparency in digital content, which AI can alter; the fourth proposes a plan for developing global AI standards. These publications are initial drafts, which NIST is publishing now to solicit public feedback before submitting final versions later this year.
“For all its potentially transformative benefits, generative AI also brings risks that are significantly different from those we see with traditional software,” said Under Secretary of Commerce for Standards and Technology and NIST Director Laurie E. Locascio. “These guidance documents will not only inform software creators about these unique risks, but also help them develop ways to mitigate the risks while supporting innovation.”
USPTO is publishing an RFC seeking feedback on how AI could affect evaluations they make as they determine whether an invention is patentable under U.S. law. For example, the use of AI poses questions as to what qualifies as prior art and the assessment of the level of skill of a person having ordinary skill in the art. USPTO expects the responses to the RFC will help them evaluate the need for further guidance on these matters, aid in the development of any such guidance, and help inform USPTO’s work in the courts and in providing technical advice to Congress.
“As AI assumes a larger role in innovation, we must encourage the responsible and safe use of AI to solve local and world problems and to develop the jobs and industries of the future, while ensuring AI does not derail the critical role IP plays in incentivizing human ingenuity and investment,” said Under Secretary of Commerce for Intellectual Property and Director of the USPTO Kathi Vidal. “This work builds on our inventorship guidance, which carefully set forth when the USPTO will issue a patent for AI-assisted innovations, and our continuing policy work at the intersection of AI and all forms of IP.”
More information on the announcements being made today can be found below. All four of the NIST publications are initial public drafts, and NIST is soliciting comments from the public on each by June 2, 2024. Instructions for submitting comments can be found in the respective publications.
Mitigating the Risks of Generative AI
The AI RMF Generative AI Profile (NIST AI 600-1) can help organizations identify unique risks posed by generative AI and proposes actions for generative AI risk management that best aligns with their goals and priorities. Developed over the past year and drawing on input from the NIST generative AI public working group of more than 2,500 members, the guidance document is intended to be a companion resource for users of NIST’s AI RMF. The AI Profile guidance document centers on a list of 13 risks and more than 400 actions that developers can take to manage them.
The 13 risks include issues such as easier access to information related to chemical, biological, radiological or nuclear weapons; a lowered barrier to entry for hacking, malware, phishing, and other cybersecurity attacks; and the production of hate speech and toxic, denigrating or stereotyping content. Following the detailed descriptions of these 13 risks is a matrix of the 400 actions that developers can take to mitigate the risks.
Reducing Threats to the Data Used to Train AI Systems
The second publication, Secure Software Development Practices for Generative AI and Dual-Use Foundation Models (NIST Special Publication (SP) 800-218A), is designed to be used alongside the SSDF (SP 800-218). While the SSDF is broadly concerned with securing the software’s lines of code, this companion resource expands the SSDF to help address concerns around malicious training data adversely affecting generative AI systems.
In addition to covering aspects of the training and use of AI systems, the new companion resource offers guidance on dealing with the training data and data collection process, including a matrix that identifies potential risk factors and strategies to address them. Among other recommendations, the document suggests analyzing training data for signs of poisoning, bias, homogeneity and tampering.
Reducing Synthetic Content Risks
Accompanying generative AI’s development has been the rise of “synthetic” content, which has been created or altered by AI. Offering technical approaches for promoting transparency in digital content is the goal of NIST’s new draft publication, Reducing Risks Posed by Synthetic Content (NIST AI 100-4). This publication informs, and is complementary to, a separate report on understanding the provenance and detection of synthetic content that AI EO Section 4.5(a) tasks NIST with providing to the White House.
NIST AI 100-4 lays out methods for detecting, authenticating and labeling synthetic content, including digital watermarking and metadata recording, where information indicating the origin or history of content such as an image or sound recording is embedded in the content to assist in verifying its authenticity. The report does not focus only on the dangers of synthetic content; it is intended to reduce risks from synthetic content by understanding and applying technical approaches for improving the content’s transparency, based on use case and context.
Global Engagement on AI Standards
AI systems are transforming American society and around the world. A Plan for Global Engagement on AI Standards (NIST AI 100-5) is designed to drive the worldwide development and implementation of AI-related consensus standards, cooperation and coordination, and information sharing.
The draft invites feedback on areas and topics that may be urgent for AI standardization. Such topics, which are ready for standardization, include mechanisms for enhancing awareness of the origin of digital content, whether authentic or synthetic; and shared practices for testing, evaluation, verification and validation of AI systems. Other topics may require more scientific research and development to establish a foundational scientific understanding about critical components of the potential standard.
NIST GenAI
In addition to the four documents, NIST is also announcing NIST GenAI, a new program to evaluate and measure generative AI technologies. The program is part of NIST’s response to the Executive Order, and its efforts will help inform the work of the U.S. AI Safety Institute at NIST.
The NIST GenAI program will issue a series of challenge problems designed to evaluate and measure the capabilities and limitations of generative AI technologies. These evaluations will be used to identify strategies to promote information integrity and guide the safe and responsible use of digital content. One of the program’s goals is to help people determine whether a human or an AI produced a given text, image, video or audio recording. Registration opens in May for participation in the pilot evaluation, which will seek to understand how human-produced content differs from synthetic content. More information about the challenge and how to register can be found on the NIST GenAI website.
USPTO RFC on Patentability
The full Federal Register Notice can be found HERE. Comments are due July 29, 2024. Please see the Federal Register Notice for instructions on submitting comments.
To incentivize, protect, and encourage investment in innovations made possible through the use of artificial intelligence (AI), and to provide the clarity to the public on the patentability of AI-assisted inventions, the USPTO has previously published guidance in the Federal Register.

 
 
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The Commission has today adopted proposals for Council decisions on the signing and provisional application, as well as on the conclusion of the Association Agreement between the EU and Andorra and San Marino, respectively. This represents a key step towards the ratification of the agreement, while marking a significant milestone in EU efforts to develop a special relationship with neighbouring countries.
The Association Agreement will allow Andorra and San Marino to participate in the EU’s internal market and enhance cooperation in other policy areas. Their access to the internal market will become comparable to that enjoyed by Norway, Iceland and Liechtenstein under the Agreement on the European Economic Area. Ultimately, this responds to the two countries’ ambition in building closer relations with the EU.
The Association Agreement is based on the following key elements:
> It provides for the participation of the two countries in a homogenous extended internal market under equal conditions of competition and respect of the same rules.
> Access to the internal market in financial services will be progressive and will depend on a successful audit of the robustness of the associated States’ regulatory and supervisory frameworks. The European Supervisory Authorities will play a central role in the auditing process.
> The Association Agreement establishes a framework to develop and promote dialogue and cooperation in areas of common interest, such as research and development, education, social policy, the environment, consumer protection, culture or regional cooperation.
> It introduces a coherent, effective, and efficient institutional framework, including:
–the consistent interpretation and application of the Association Agreement in line with the case-law of the European Court of Justice; and
— a dispute settlement mechanism with the European Court of Justice as the ultimate arbiter for disputes on the interpretation and application of the Association Agreement.
> In line with the 2014 negotiating directives, the Association Agreement takes into account the particular situation of Andorra and San Marino as well as their specificities, arising from their relations of proximity with their neighbouring EU Member States, their size, including that of their populations. This is reflected in a number of adjustments as well as in several transitional periods for the implementation and application of parts of the EU acquis.
Next Steps
Once the Council gives its green light, the EU, Andorra and San Marino can sign the Association Agreement and then pass it to the European Parliament for consent. After the consent by the European Parliament, the Council can adopt a decision on its conclusion. Once Andorra and San Marino have also completed their ratification procedures, the Association Agreement can enter into force.  
Background
On 16 December 2014, the General Affairs Council authorised the opening of negotiations for an Association Agreement with Andorra, Monaco and San Marino. The Commission took over the responsibility of these negotiations in January 2022.
In its conclusions adopted in June 2022, the Council called on the Commission to finalise the negotiations by the end of 2023. Between March 2022 and December 2023, 49 negotiating sessions were held and significant progress was made, leading to the conclusions of negotiations at negotiators level in December 2023.
 
 
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The Commission has adopted an amendment to the 2023-24 Work Programme of Horizon Europe, the EU’s research and innovation programme. The amendment mobilises previously unallocated Horizon Europe funding to increase the 2024 budget by nearly €1.4 billion to a total of €7.3 billion. This amendment includes an investment of nearly €650 million in the EU Missions aiming to contribute to solving some of the challenges facing Europe, for example, making more than 100 cities climate neutral, a New European Bauhaus facility, as well as experimental actions opening EU research and innovation opportunities to more newcomers, among other novelties.
Some of the main features of this update of the Horizon Europe Work Programme include:
EU Missions
The EU will invest €648 million in 2024 in research and innovation activities underpinning the EU Missions. The EU Missions cover five areas and are a novelty brought by Horizon Europe to bring concrete solutions to some of our greatest challenges. They have ambitious goals and will deliver concrete results by 2030. The new actions for 2024 should result in restoring at least 25 000 km of free-flowing rivers, Climate City Contracts with more than 100 cities, 100 living labs and lighthouses leading the transition towards healthy soils, local and regional authorities better prepared to face climate-related risks, better cancer diagnosis and support to young cancer sufferers.
New European Bauhaus
The New European Bauhaus (NEB) aims to bring the benefits of the European Green Deal into people’s daily lives and living spaces. In the three years since its launch, the NEB has provided solutions to concrete problems. Examples include the TOVA project from Spain that developed a 3D printing technique with earth to provide architectural solutions for sustainable, affordable, community-based housing. Another example is the WATSUPS project from Belgium that creates a new public space alongside the river Dyle to mitigate the risk of gentrification. These solutions are rooted in research and innovation that place the Europeans at the heart of the green transformation.
A new NEB Facility will ensure that Europe continues to make most of this potential. It brings multi-annual budget support for 2025-2027 through two pillars, a research and innovation part to develop new ideas and a roll-out part to scale-up such solutions. The amended Horizon Europe work programme 2023-24 allocates €20 million to preparing the ground for the implementation of the NEB Facility.
Experimental actions to attract newcomers
This amendment includes a package of new experimental actions to reinforce the openness of the programme, support the goals of the EU Missions and foster young researchers’ careers. They will test new approaches in view of preparations for the last three years of Horizon Europe as well as of its future successor programme.
The actions include four open topics giving researchers more freedom to focus their work on a subject they choose with a total budget of €76 million in Horizon Europe Clusters addressing ‘Health’, ‘Climate, energy and mobility’ and ‘Food, Bioeconomy, Natural Resources, Agriculture and Environment’. An experimental action of €15 million for the EU Missions will make knowledge institutions such as universities or research organisations focal points of local transdisciplinary research and innovation activities with European outreach. In addition, the NEB call ‘Transforming neighbourhoods, making them beautiful, sustainable, and inclusive’ also aims to attract newcomers to the programme to maximise impact. Finally, €20 million will support talent ecosystems for attractive early research careers.
Cultural Heritage
The amendment also dedicates €48 million to the European Collaborative Cloud for Cultural Heritage. This new digital collaborative space will support cultural heritage institutions and researchers as well as the cultural and creative industries to reap the benefits of the digital transition. It will complement the common European Data Space for Cultural Heritage (the Data Space) funded under the Digital Europe programme.
Pandemic preparedness
The COVID-19 pandemic highlighted the challenges faced by European health care systems in detecting, preventing, fighting and managing outbreaks of infectious diseases. To help equip Europe for potential future pandemics, the amended work programme includes an investment of €50 million for a European Partnership for pandemic preparedness.
Paving the way for 2025
Calls for 2025 are also included in the amendment to ensure continuity of certain recurrent actions, such as the Marie Skłodowska-Curie Actions (MSCA) and ‘Teaming for Excellence’ and ‘ERA (European Research Area) Fellowships’ in the ‘Widening participation and spreading excellence’ and ‘Reforming and Enhancing the European R&I system’ part. The Commission plans to roll out the full range of actions for 2025 in a dedicated work programme in 2025.
Background
Horizon Europe is the EU’s research and innovation programme for 2021-27. Originally working with €95.5 million over seven years, the European Council decided to reduce its budget by €2.1 billion as part of the mid-term revision of the EU’s long-term budget to allow the Union to finance other urgent priorities such as aid to Ukraine. The cut has been reduced by €100 million stemming from the re-use of decommitments, therefore, the reduction in 2025-27 will amount to €2 billion.
The 2023-24 Horizon Europe work programme was adopted on 6 December 2022 and first amended on 31 March 2023. It is based on Horizon Europe’s Strategic Plan 2021-2024, adopted in March 2021, which was co-designed with stakeholders, the European Parliament and the Member States.
Today’s amendment rolls out the investment for the EU Missions, which had been held back from the original work programme 2023-24 to enable the implementation of the Communication “EU Missions two years on: assessment of progress and way forward”, adopted on 19 July 2023.
 
 
Compliments of the European Commission.The post Commission Mobilizes Research and Innovation Funding for the Green and Digital Transitions first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.

With Up to $6.6 Billion in Proposed CHIPS Direct Funding, TSMC Announces 2 Nanometer Technology at Second Fab and a New Third Fab to Produce 2 Nanometer or More Advanced Chips. Proposed CHIPS Investment in Arizona Would Support AI, High-Performance Computing, 5G/6G Communications, and More Applications.
On April 8th, the Biden-Harris Administration announced that the U.S. Department of Commerce and TSMC Arizona Corporation (TSMC Arizona), a subsidiary of Taiwan Semiconductor Manufacturing Company Limited (TSMC), have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $6.6 billion in direct funding under the CHIPS and Science Act. This proposed funding would support TSMC’s investment of more than $65 billion in three greenfield leading-edge fabs in Phoenix, Arizona, which will manufacture the world’s most advanced semiconductors.
Through this proposed investment in TSMC Arizona, the Biden-Harris Administration would take a significant step in strengthening U.S. economic and national security by providing a reliable domestic supply of the chips that will underpin the future economy, powering the AI boom and other fast-growing industries like consumer electronics, automotive, Internet of Things, and high-performance computing. After initially announcing two fabs in the U.S., TSMC Arizona is committing to build an additional third fab before the end of the decade. With this proposed funding, TSMC Arizona would be ensuring the formation of a scaled leading-edge cluster in Arizona, creating approximately 6,000 direct manufacturing jobs, more than 20,000 accumulated unique construction jobs, and tens of thousands of indirect jobs in this decade and bringing the most advanced process technology to the United States.
“Semiconductors – those tiny chips smaller than the tip of your finger – power everything from smartphones to cars to satellites and weapons systems. America invented these chips, but over time, we went from producing nearly 40% of the world’s capacity to close to 10%, and none of the most advanced chips, exposing us to significant economic and national security vulnerabilities. I was determined to turn that around, and thanks to my CHIPS and Science Act – a key part of my Investing in America agenda – semiconductor manufacturing and jobs are making a comeback,” said President Joe Biden. “TSMC’s renewed commitment to the United States, and its investment in Arizona represent a broader story for semiconductor manufacturing that’s made in America and with the strong support of America’s leading technology firms to build the products we rely on every day.”
“One of the key goals of President Biden’s CHIPS and Science Act was to bring the most advanced chip manufacturing in the world to the U.S., and with this announcement and TSMC’s increased investment in their Arizona campus, we are working to achieve that goal,” said U.S. Secretary of Commerce Gina Raimondo. “The leading-edge semiconductors that will be made here in Arizona are foundational to the technology that will define global economic and national security in the 21st century, including AI and high-performance computing. Thanks to President Biden’s leadership and TSMC’s continued investments in U.S. semiconductor manufacturing, this proposed funding would help make our supply chains more secure and create thousands of good-quality construction and manufacturing jobs for Arizonans.”
“America’s ability to maintain our competitive edge in advanced technologies like artificial intelligence is essential to igniting the next generation of research, innovation, development, and production,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “Our proposed support for TSMC Arizona represents an inflection point for America’s innovative capacity that would restore our nation’s leadership in an industry that is foundational to the U.S. and global digital economy.”
“The proposed funding from the CHIPS and Science Act would provide TSMC the opportunity to make this unprecedented investment and to offer our foundry service of the most advanced manufacturing technologies in the United States,” said TSMC Chairman Dr. Mark Liu. “Our U.S. operations allow us to better support our U.S. customers, which include several of the world’s leading technology companies. Our U.S. operations will also expand our capability to trailblaze future advancements in semiconductor technology.”
“We are honored to support our customers who have been pioneers in mobile, artificial intelligence and high-performance computing, whether in chip design, hardware systems or software, algorithms, and large language models,” said TSMC CEO Dr. C.C. Wei. “They are the innovators driving demand for the most advanced silicon that TSMC can provide. As their foundry partner, we will help them unleash their innovations by increasing capacity for leading-edge technology through TSMC Arizona. We are thrilled by the progress of our Arizona site to date and are committed to its long-term success.”
TSMC is widely recognized as a global leader in semiconductor manufacturing, having pioneered the pure-play foundry business model in 1987, and now manufactures over 90% of the world’s leading-edge logic chips. In Arizona, TSMC’s three fabs are expected to bring a suite of the most advanced process node technologies to the United States: the first fab  will produce 4nm FinFET process technologies; today, TSMC Arizona announced that the second fab will produce the world’s most advanced 2nm nanosheet process technology, in addition to previously announced plans to produce 3nm process technologies; and TSMC Arizona’s third fab will produce 2nm or more advanced process technologies depending on customer demand. At full capacity, TSMC Arizona’s three fabs would manufacture tens of millions of leading-edge chips that will power products like 5G/6G smartphones, autonomous vehicles, and AI datacenter servers. TSMC Arizona expects to begin high-volume production in their first fab in the U.S. by the first half of 2025.
Thanks to investments like those at TSMC Arizona, the United States is now on track to produce roughly 20% of the world’s leading-edge chips by 2030. With total capital expenditures of more than $65 billion, TSMC Arizona’s investment is the largest foreign direct investment in a greenfield project in U.S. history. TSMC Arizona’s investment in the United States is catalyzing meaningful investment across the supply chain, including from 14 direct suppliers that plan to construct or expand plants in Arizona or other parts of the U.S., further strengthening U.S. domestic supply chain resilience.
TSMC’s advanced chips are the backbone of core processing units (“CPUs”) for servers in large-scale datacenters and of specialized graphic processing units (“GPUs”) used for machine learning. Through the proposed funding for TSMC Arizona, the United States would onshore the critical hardware manufacturing capabilities that underpin AI’s deep language learning algorithms and inferencing techniques. This would help strengthen America’s competitive edge in science and technology innovation. Furthermore, through its Arizona fabs, TSMC will be able to better support its key customers, including U.S. companies AMD, Apple, Nvidia, and Qualcomm, among others, by addressing their leading-edge capacity demand, mitigating supply chain concerns, and enabling them to compete effectively in the ongoing digital transformation era. With the proposed incentives, TSMC Arizona has also committed to support the development of advanced packaging capabilities – the next frontier of technology innovation for chip manufacturing – through its partners in the U.S., creating the opportunity for TSMC Arizona’s customers to be able to purchase advanced chips that are made entirely on U.S. soil.
The PMT also proposes $50 million in dedicated funding to develop the company’s semiconductor and construction workforce. To build the long-term construction workforce needed to support these projects, TSMC Arizona recently signed an agreement with the Arizona Building and Construction Trades Council. The company also plans to utilize registered apprenticeship programs to meet a 15 percent apprenticeship utilization rate on the Phoenix construction site.
As part of its commitment to developing local talent, TSMC Arizona established one of the first state-supported Registered Apprenticeship programs for semiconductor technicians, with support from the City of Phoenix. TSMC’s U.S.-based recruiting team is also actively collaborating with university engineering programs around the country, including Arizona State University, University of Arizona, and Purdue University, and is partnering with Maricopa Community Colleges and career technical education programs on initiatives to develop the skills for a career in the semiconductor industry. Site employees have access to discounts, reimbursements, and priority enrollment through partnerships for local area early education and childcare centers.
In addition to the proposed direct funding of up to $6.6 billion, the CHIPS Program Office would make approximately $5 billion of proposed loans – which is part of the $75 billion in loan authority provided by the CHIPS and Science Act – available to TSMC Arizona under the PMT. The company has indicated that it is planning to claim the Department of the Treasury’s Investment Tax Credit, which is expected to be up to 25% of qualified capital expenditures.
As explained in its first Notice of Funding Opportunity, the Department may offer applicants a PMT on a non-binding basis after satisfactory completion of the merit review of a full application. The PMT outlines key terms for a potential CHIPS incentives award, including the amount and form of the award. The award amounts are subject to due diligence and negotiation of a long-form term sheet and award documents and are conditional on the achievement of certain milestones. After the PMT is signed, the Department begins a comprehensive due diligence process on the proposed projects and continues negotiating or refining certain terms with the applicant. The terms contained in the long-form term sheet and the final award documents may differ from the terms of the PMT being announced today.
 
To learn more about CHIPS for America, visit www.chips.gov.
 
Compliments of the U.S. Department of Commerce.
 The post Biden-Harris Administration Announces Preliminary Terms with TSMC, Expanded Investment from Company to Bring World’s Most Advanced Leading-Edge Technology to the U.S. first appeared on European American Chamber of Commerce New York [EACCNY] | Your Partner for Transatlantic Business Resources.