Funding trigger
Does CHIPS Act funding trigger Davis-Bacon prevailing wage?
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
Short answer
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
How the requirement attaches
The CHIPS statute and the Department of Commerce program terms require that laborers and mechanics employed by contractors and subcontractors on CHIPS-funded facility construction be paid at least the Davis-Bacon prevailing wages for the locality.
Bid-file implication
Treat CHIPS-funded semiconductor facility work like federal construction: use the incorporated wage determination and submit certified payroll.
Guardrail
Screening only—not a coverage determination, tax opinion, or legal advice. Confirm the program-specific rules, exceptions, contract clauses, incorporated wage determination, and any separate federal, state, or local requirements before bidding, paying workers, filing payroll reports, or claiming a tax benefit.
FAQ
Frequently asked questions
Does CHIPS Act funding require Davis-Bacon prevailing wages?
Yes. Construction of a facility funded under the CHIPS incentives program is subject to Davis-Bacon prevailing wage requirements.
What happens when both federal and state prevailing wage apply?
Both regimes may impose requirements, but the answer is jurisdiction- and contract-specific. Compare the incorporated federal determination with the applicable state schedule, then verify classifications, fringes, overtime, apprentices, dates, exemptions, and contract clauses with the awarding agency or qualified adviser.
Do I still need certified payroll?
Covered DBRA contractors and subcontractors generally must submit weekly certified payroll showing the classifications and rates paid. Confirm the reporting clause in the specific contract.
Official sources