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CHIPS for America Announces up to $300 million in Funding to Boost U.S. Semiconductor Packaging
On November 21, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce (DOC) is entering negotiations to invest up to $300 million in advanced packaging research projects in Georgia, California, and Arizona to accelerate the development of cutting-edge technologies essential to the semiconductor industry. The expected recipients are Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University in Arizona.
These competitively awarded research investments, each expected to total as much as $100 million, represent novel efforts in advanced substrates. Advanced substrates are physical platforms that allow multiple semiconductor chips to be assembled seamlessly together, enable high-bandwidth communication between those chips, efficiently deliver power, and dissipate unwanted heat. The advanced packaging enabled by advanced substrates translates to high performance computing for AI, next-generation wireless communication, and more efficient power electronics. Such substrates are not currently produced in the United States but are foundational to establishing and expanding domestic advanced packaging capability. Up to $300 million in federal funding will be paired with additional investments from the private sector, bringing the expected total investment across all three projects to over $470 million. This combined effort will help ensure U.S. manufacturers stay competitive and continue to drive technological innovation, giving companies a stronger edge in global competition.
To learn more about the awardees read the full press release here.
“Advanced packaging” refers to many chips with diverse functions assembled tightly together on a substrate in two or three dimensions at extremely fine dimensions. This method achieves function, performance, and power savings far greater than can be achieved with conventionally packaged chips on a printed circuit board. Recent advances in artificial intelligence, for example, would not be possible without advanced packaging.
Advanced packaging can be a transformative capability that helps U.S. manufacturers compete globally, but there are many technological challenges to solve. The CHIPS Research and Development Office has established the CHIPS National Advanced Packaging Manufacturing Program to address these challenges, including:
- How do we design and assemble chips so tightly that they behave like a single traditional large chip, but with the production efficiency and cost savings of advanced packaging?
- How do we supply power to and dissipate heat from such tightly coupled assemblies?
- How do we test and repair such complex assemblies?
- How do we ensure their reliability since traditional methods of visual inspection cannot be performed on such small, tightly packaged dimensions?
Investments in semiconductors will not succeed without investments in advanced packaging. The CHIPS and Science Act offers a once-in-a-generation opportunity to establish a domestic competitive advanced packaging capability in semiconductor manufacturing.
In addition, the CHIPS NAPMP will help train semiconductor personnel and students in relevant technologies and feed these developments into domestic manufacturing facilities. The CHIPS NAPMP will work closely with the CHIPS National Semiconductor Technology Center, the semiconductor-related CHIPS Manufacturing USA Program, the CHIPS Metrology Program, and U.S. industry and academia to make this vision a reality.
The CHIPS NAPMP will enable the development of a robust domestic advanced packaging ecosystem by:
- Establishing an advanced packaging piloting facility (or facilities) that accelerates the transfer of innovations in packaging, equipment, and process development into manufacturing;
- Driving the development of digital tools to reduce the time and cost of advanced packaging engineering; and,
- Establishing and supporting partnerships among industry, academia and training entities, and government to contribute to an advanced packaging workforce.
The six priority research investment areas of the CHIPS NAPMP are:
- Materials and substrates
- Equipment, tools, and processes
- Power delivery and thermal management for advanced packaging assemblies
- Photonics and connectors that communicate with the outside world
- A chiplet ecosystem
- Co-design of multi-chiplet systems with automated tools
Learn more from the CHIPS NAPMP vision paper, and sign up for updates from CHIPS to be informed of upcoming CHIPS NAPMP programs, events, and funding opportunities.