# Commerce Awards $500 Million CHIPS Materials Funding

The U.S. Department of Commerce made a $500 million CHIPS award to SandboxAQ for work addressing materials challenges in semiconductor manufacturing. The sponsored article identifies potential demand for U.S. capabilities in PFAS-free process chemicals, catalysts, rare-earth-free magnets, battery systems, and AI-enabled materials discovery, but does not identify an open solicitation or a specific action for contractors to pursue now.

- The award signals federal investment in technologies and materials that could support domestic semiconductor manufacturing, including alternatives to PFAS and rare-earth-dependent inputs.
- Companies with relevant materials science, chemical production, battery, magnet, or AI-enabled discovery capabilities can use these areas to assess potential alignment with the market direction described; the signal does not establish a current procurement opportunity.
- Procurement teams and contractors should distinguish this award to SandboxAQ from an open competition: no solicitation, proposal deadline, or additional contract details are provided.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Grants & Funding, Artificial Intelligence
**Published:** October 18, 2026

### Government Entities
- U.S. Department of Commerce (Commerce)

### Vendors
- SandboxAQ (awardee)

### Sources
- [The materials stack will determine whether America's semiconductor revival succeeds | TechCrunch](https://techcrunch.com/sponsor/sandboxaq/the-materials-stack-will-determine-whether-americas-semiconductor-revival-succeeds) - TechCrunch