The U.S. Department of Commerce has declared that the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act is allocating funds to provide opportunities for companies to expand U.S. Semiconductor Packaging. The fresh funding aims to solicit applications for research and development that will aid in expediting the domestic capacity for advanced packaging substrates, a critical technology for manufacturing semiconductors.
According to a press release by the Department of Commerce, nearly $300 million in funding through the CHIPS for America program will be made accessible for innovation efforts across multiple technologies. The CHIPS and Science Act was enacted into law on Aug. 9, 2022, with over $50 billion being allocated to rejuvenate the U.S. semiconductor industry amid competition with China for supremacy in chip technology. The United States aims to domestically develop the majority of semiconductors used within its borders following reports of China hacking into infrastructure to gain access to US information. Advancing semiconductor development within the United States is expected to bolster the country's economic and national security.
The CHIPS for America act forms part of an economic plan designed to stimulate private sector investment, create well-paying jobs domestically, and develop communities that have been left behind in America. The National Institute of Standards and Technology (NIST) promotes U.S. innovation and industrial competitiveness by advancing technologies, particularly as artificial intelligence and advanced telecommunications have rapidly escalated the demand for semiconductors.
Raimondo said in a press release by the Department: "CHIPS for America is delivering on its vision to ensure new leading-edge chip architectures can be invented in our research labs, designed for every end-use application, manufactured at scale, and packaged with the most advanced technologies. Within a decade, research and activities funded by this advanced packaging program, coupled with CHIPS manufacturing incentives, will establish a vibrant, self-sustaining, and resilient onshore packaging industry, helping ensure our country is a leader in advanced semiconductor manufacturing."
