Introduction
The U.S. Commerce Department has granted Akash Systems up to $18.2 million. The funding will support a new semiconductor manufacturing facility in West Oakland, California.
This project is part of the $52.7 billion CHIPS and Science Act. Akash will build a 40,000-square-foot cleanroom to scale its production of advanced semiconductors.
The company is investing $121 million in total, combining public and private funds. The facility will focus on Akash’s Diamond Cooling technology, which improves thermal management for AI systems.
Diamond Cooling is a cutting-edge thermal management technology developed by Akash Systems. It uses synthetic diamond materials to efficiently dissipate heat from semiconductor chips. Diamonds, being excellent thermal conductors, help reduce overheating in high-performance devices like AI data centers and communication systems. This improves chip reliability, performance, and energy efficiency. Diamond Cooling is especially valuable in managing the heat generated by modern, densely packed processors, ensuring optimal operation in demanding applications.
Key Highlights
- Akash Systems will receive $18.2 million from the U.S. Commerce Department.
- A $121 million facility will be built in West Oakland, California.
- Diamond Cooling technology will target AI and high-performance computing.
- The funding supports the CHIPS Act’s push for domestic semiconductor production.
- Labor agreements ensure fair practices for construction and production workers.
Background
The U.S. semiconductor industry has faced growing challenges. Most chips are currently manufactured in Asia, raising security and supply chain concerns. To counter this, the CHIPS and Science Act was introduced in 2022.
The Act provides $52.7 billion to boost domestic chip manufacturing. The goal is to reduce reliance on imports and strengthen U.S. technology leadership. It is one of 20 companies that have secured preliminary funding.
Akash Systems and Diamond Cooling
Akash Systems specializes in advanced semiconductor technology. Its Diamond Cooling innovation improves heat management in chips. This is crucial for AI-focused data centers and high-performance computing.
Heat generated by advanced processors often reduces efficiency. Akash’s technology helps chips run cooler, faster, and longer. The new West Oakland facility will produce Diamond Cooling substrates and systems at scale.
CEO Felix Ejeckam called the funding a validation of Akash’s strategy. “This will help us deliver solutions for today’s high-performance computing challenges,” he said.
Strategic Importance
The $18.2 million subsidy reflects U.S. efforts to lead in chip production. Commerce Secretary Gina Raimondo praised the move. She said it strengthens the U.S. role in the global semiconductor supply chain.
The facility is part of a broader $36 billion in preliminary agreements under the CHIPS Act. These efforts aim to bring semiconductor manufacturing back to the U.S.
The funding supports the U.S. goal of reducing reliance on Asian chipmakers. It also helps ensure critical technologies like AI and 5G are developed locally.
Labor Agreements
Akash Systems has also taken steps to support workers. In November 2023, it signed agreements with the IUE-CWA workers union.
These agreements cover both construction and production workers. Akash also agreed to a labor neutrality pact, a first in the semiconductor industry. This ensures fair treatment of workers and avoids labor disputes.
The agreements are a key milestone. They reflect a growing focus on worker rights in the tech sector.
Stats for $6.6 Billion: Biden Administration Grant to TSMC Under CHIPS Act
National Semiconductor Strategy
The Akash funding aligns with a larger U.S. strategy. The government is investing heavily in domestic chip production. This is part of a push to remain competitive with global rivals.
China, South Korea, and Taiwan dominate the semiconductor market. The U.S. wants to reclaim its leadership by building local capacity. Investments like Akash’s facility are a step in that direction.
The CHIPS Act has already supported companies like Intel, TSMC, and Polar Semiconductor. Akash’s project is another example of progress under this program.
Conclusion
The $18.2 million grant to Akash Systems highlights the U.S.’s semiconductor goals. The West Oakland facility will boost production of cutting-edge chips.
This aligns with the CHIPS Act’s mission to reduce reliance on foreign suppliers. Akash’s focus on thermal management also supports AI and high-performance computing.
The company’s labor agreements add another layer of significance. With this project, Akash Systems positions itself as a key player in U.S. chip manufacturing.
