US government plans major investment in semiconductor packaging

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US government plans major investment in semiconductor packaging

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Laurie E. Locascio Director of NIST and the Under Secretary of Commerce for Standards and Technology | Official Website

The Biden-Harris Administration has announced that the U.S. Department of Commerce is in talks to invest up to $300 million in advanced packaging research projects across Georgia, California, and Arizona. The initiative aims to enhance the development of critical technologies within the semiconductor industry. Absolics Inc., Applied Materials Inc., and Arizona State University are expected recipients of these funds.

Each project may receive up to $100 million, focusing on advanced substrates that allow for seamless assembly and high-bandwidth communication between semiconductor chips. These substrates are pivotal for high-performance computing, AI, next-generation wireless communication, and efficient power electronics. The combined investment from federal funding and private sector contributions is projected to exceed $470 million.

U.S. Secretary of Commerce Gina Raimondo emphasized the importance of innovation in maintaining competitiveness: "The key to the United States’ long-term competitiveness hinges on our ability to out-innovate and out-build the rest of the world." She highlighted how these investments support every aspect of the semiconductor supply chain pipeline.

National Economic Advisor Lael Brainard described these awards as crucial for securing America's leadership in semiconductors: “Today’s awards are vital to secure America’s global leadership in semiconductors-- making sure the supply chain here in America is on the cutting edge from end to end.”

Advanced packaging technology is essential for emerging industries such as AI, according to Under Secretary of Commerce Laurie E. Locascio: "Advanced packaging is essential to the development of advanced semiconductors that are drivers of emerging technology like artificial intelligence."

These efforts are part of CHIPS for America, a program under President Biden's economic plan designed to boost domestic manufacturing capabilities and stimulate private investment. The National Advanced Packaging Manufacturing Program (NAPMP) plans approximately $3 billion in investments over a decade, aiming for a self-sustaining domestic industry capable of high-volume production.

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