Gina M. Raimondo Secretary of Commerce | Official Website
The Biden-Harris Administration has announced a preliminary agreement with Akash Systems to provide up to $18.2 million in funding under the CHIPS and Science Act. This proposed investment aims to support the development of semiconductor technology and create over 400 jobs in West Oakland, California.
The Department of Commerce and Akash Systems have signed a non-binding memorandum of terms (PMT) for this funding, which will aid in constructing a 40,000 square foot cleanroom space for semiconductor manufacturing. The project is part of a larger $121 million investment involving contributions from Akash, venture capital firms, and other private investors.
U.S. Secretary of Commerce Gina Raimondo stated, "A critical part of the success of CHIPS for America is ensuring the United States is a global leader in every part of the semiconductor supply chain." She emphasized that this investment would help accelerate innovation and spur economic opportunities.
Akash Systems plans to use its expertise in Diamond Cooling technology to improve thermal performance in semiconductors. The company will manufacture various substrates, devices, and systems at scale in West Oakland. National Economic Advisor Lael Brainard commented on the importance of this investment for future semiconductor technologies in America.
Felix Ejeckam, co-founder and CEO of Akash Systems, expressed that the proposed funding validates their vision and strategy for developing next-generation semiconductor technology. He stated, "We’re excited to drive this advancement forward for the industry and for the future of American technology."
The project includes a labor agreement with Alameda Building Trades and focuses on hiring West Oakland residents. Akash will work with partners like IUE-CWA to recruit and train workers from underserved populations. They will also collaborate with educational institutions such as Berkeley City College.
Akash intends to claim the Department of Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which covers 25% of qualified capital expenditures. The Department of Commerce's PMT outlines potential CHIPS incentives awards but remains subject to due diligence.
CHIPS for America has allocated over $36 billion across 20 states, aiming to create over 125,000 jobs. It is part of President Biden's plan to invest in U.S. manufacturing and stimulate private sector growth.
