The Colorado CHIPS Community Support Program, developed by the Colorado Office of Economic Development and International Trade (OEDIT), is a state-level initiative designed to bolster the growth and expansion of the semiconductor and advanced industry sectors in Colorado. This program is a key component of the broader CHIPS and Science Act and focuses on distributing the benefits of semiconductor industry growth beyond Colorado's established Front Range technology corridor. The program aims to spur development in underrepresented areas across the state by offering three types of competitive grants: Market Study Grants, Implementation Grants, and Marketing Grants.

The purpose of these grants is to enable local governments and economic development organizations to assess their regions' potential for growth in the semiconductor and advanced industries, to implement projects that can fill gaps or enhance infrastructure, and to promote their regions to external stakeholders in these industries. By doing so, the state seeks to cultivate new clusters of semiconductor-related businesses outside of its traditional hubs, while maintaining Colorado's role as a leader in advanced technologies like aerospace, bioscience, and cleantech.

The program offers funding in three categories. Market Study Grants, ranging from $25,000 to $50,000, support localities in conducting detailed analyses of their assets and opportunities in the semiconductor sector. Implementation Grants, which range from $100,000 to $500,000, are intended to support the development of physical or strategic assets that enhance a community’s ability to attract semiconductor-related businesses. Marketing Grants, ranging from $10,000 to $25,000, focus on promoting local regions to semiconductor and advanced industry stakeholders outside the state. Notably, in the program's initial cycle, only Market Study and Marketing Grants will be available for application, running from April 29, 2024, to May 31, 2024, with decisions announced by June 30, 2024.

Eligibility for these grants is limited to municipal, county, and tribal governments, as well as regional economic development organizations or consortia in Colorado. The program has a geographic focus: applicants from areas with existing high concentrations of semiconductor industries, such as the Front Range (Fort Collins, Boulder, Colorado Springs), are generally excluded from Market Study and Implementation Grants and will score lower for Marketing Grants. This approach prioritizes funding for regions with emerging or untapped potential, particularly rural and less-developed areas.

The program's total funding is $3.75 million, to be allocated across four grant cycles between 2024 and 2025. Each cycle has specific maximum funding allocations, with the first cycle focused on Market Study ($250,000) and Marketing ($125,000) grants. Subsequent cycles will allocate larger sums, particularly for Implementation Grants. Should funds remain after the planned cycles, additional cycles may be introduced.

Applications will be evaluated based on location, project readiness, and potential impact. Higher scores will be awarded to regions outside the semiconductor core, particularly rural areas with less industry presence. Strong applications will include detailed project plans, identified contractors, and clear economic benefits. Successful applicants will be expected to submit regular progress reports, with funding distributed primarily through a reimbursement model. Appeals of rejected applications are permitted and will be reviewed by the OEDIT’s Purchasing and Contracts Director.

This program represents a significant opportunity for localities in Colorado to position themselves as competitive hubs within the growing semiconductor ecosystem, particularly in regions that have not traditionally been part of the state’s semiconductor core.