Biden-Harris Administration to Invest $1.6 Billion to Accelerate Domestic Capacity Advanced Packaging

CHIPS for America plans to offer multiple awards of approximately $150 million each in federal funding for various research areas through potential cooperative agreements.

Introduction

As part of Biden-Harris Administration Investing in America agenda, The Department of Commerce has announced a Notice of Intent (NOI) to launch a competition for new research and development (R&D) activities designed to establish and accelerate domestic capacity for advanced semiconductor packaging. The CHIPS for America program plans to provide up to $1.6 billion in funding across five R&D areas, in line with the vision for the National Advanced Packaging Manufacturing Program (NAPMP).

CHIPS for America intends to award approximately $150 million each in federal funding for various research areas through potential cooperative agreements.

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CHIPS for America’s Ambitious Plan

The CHIPS for America program plans to award approximately $150 million in federal funding per project within each research area. These awards will leverage private sector investments from industry and academia, fostering public-private partnerships essential for innovation.

“President Biden emphasized the need for a robust domestic semiconductor ecosystem, and advanced packaging plays a crucial role in that,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the Biden-Harris Administration’s commitment to investing in America, we will have multiple advanced packaging options nationwide, pushing the boundaries of new packaging technologies. This announcement exemplifies our dedication to investing in cutting-edge R&D critical to creating quality jobs and establishing the U.S. as a leader in advanced semiconductor manufacturing.”

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The Importance of Advanced Packaging

Advanced packaging has become increasingly crucial to semiconductor technology, especially with the rise of artificial intelligence (AI) applications pushing the limits of high-performance computing and low-power electronics. Advanced packaging enables improvements in system performance, reduced physical footprint, lower power consumption, decreased costs, and increased chiplet reuse. Achieving these advancements requires coordinated investments in integrated R&D activities to build leading-edge domestic capacity for semiconductor advanced packaging.

Focus Areas for Funding

Funded activities will focus on five key R&D areas:

  1. Equipment, Tools, Processes, and Process Integration: Enhancing the tools and methods used in semiconductor manufacturing.
  2. Power Delivery and Thermal Management: Improving how chips manage power and heat.
  3. Connector Technology, Including Photonics and Radio Frequency (RF): Developing better ways for chips to communicate with each other.
  4. Chiplets Ecosystem: Creating an ecosystem for small, modular chips that can be combined to enhance performance.
  5. Co-Design/Electronic Design Automation (EDA): Integrating design and automation to streamline chip development.

Additionally, the funding opportunity will include prototype development, crucial for translating R&D into practical applications.

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Strategic Focus

The initiative aims to stimulate private sector investments from industry and academia, thereby fostering a robust semiconductor ecosystem within the United States. By supporting innovative R&D projects, the program seeks to accelerate advancements in semiconductor packaging technologies. This approach not only strengthens America’s technological capabilities but also creates high-quality jobs in the semiconductor industry across various states.

Collaborative Efforts

The CHIPS for America program encourages collaboration among government agencies, industry partners, and academic institutions. By leveraging federal funding with private sector investments, the initiative aims to establish cutting-edge packaging technologies that will enable the U.S. semiconductor industry to lead globally.

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About CHIPS for America

CHIPS for America is a key part of President Biden’s economic plan. It aims to invest in America, stimulate private sector investment, create well-paying jobs, increase domestic manufacturing, and revitalize communities. The program includes the CHIPS Program Office, which handles manufacturing incentives, and the CHIPS Research and Development (R&D) Office, which manages R&D programs. Both offices are part of the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology, enhancing economic security and quality of life.

Initial Funding Opportunities and Selection

In February 2024, CHIPS R&D released the first funding opportunity for the National Advanced Packaging Manufacturing Program (NAPMP). They requested applications for R&D activities to build and boost domestic capacity for advanced packaging substrates and substrate materials. Applicants from 28 states submitted over 100 concept papers. On May 22, 2024, the Department of Commerce announced that eight teams were selected to submit full applications for the NAPMP funding opportunity for materials and substrate materials.

Future Prospects and Economic Impact

Under the leadership of the Biden-Harris Administration, the program plans to revitalize American semiconductor manufacturing capabilities.

This includes the establishment of new factories, development of robust supply chains, and creation of sustainable job opportunities nationwide. The investment in advanced packaging is expected to drive significant technological advancements and economic growth in the semiconductor sector.

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Vision for National Advanced Packaging Manufacturing Program

“The National Advanced Packaging Manufacturing Program will enable a U.S. packaging sector that outpaces global competitors through innovation driven by robust R&D,” said Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology and NIST Director. “Within a decade, R&D funded by CHIPS for America will create a domestic packaging industry where advanced node chips, manufactured domestically and abroad, can be packaged within the U.S. Innovative designs and architectures will be enabled through leading-edge packaging capabilities.”

Kumar Priyadarshi
Kumar Priyadarshi

Kumar Priyadarshi is a prominent figure in the world of technology and semiconductors. With a deep passion for innovation and a keen understanding of the intricacies of the semiconductor industry, Kumar has established himself as a thought leader and expert in the field. He is the founder of Techovedas, India’s first semiconductor and AI tech media company, where he shares insights, analysis, and trends related to the semiconductor and AI industries.

Kumar Joined IISER Pune after qualifying IIT-JEE in 2012. In his 5th year, he travelled to Singapore for his master’s thesis which yielded a Research Paper in ACS Nano. Kumar Joined Global Foundries as a process Engineer in Singapore working at 40 nm Process node. He couldn’t find joy working in the fab and moved to India. Working as a scientist at IIT Bombay as Senior Scientist, Kumar Led the team which built India’s 1st Memory Chip with Semiconductor Lab (SCL)

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