In-Short
- The US Department of Commerce announces a $1.6 billion competition to advance semiconductor packaging.
- Part of the CHIPS for America program, the initiative aims to reduce reliance on Asian suppliers.
- Focus areas include R&D in equipment integration, power management, connector technology, and more.
- The goal is to establish a robust domestic semiconductor ecosystem and regain global leadership.
Summary of the US Semiconductor Initiative
In a bold move to reclaim leadership in semiconductor technology, the US has launched a substantial $1.6 billion competition designed to enhance chip packaging capabilities. Announced by the Department of Commerce on July 9, 2024, this initiative is a strategic component of the Biden-Harris Administration’s CHIPS for America program. The investment targets the development of domestic advanced packaging, a sector traditionally dominated by Asian countries such as Taiwan and South Korea.
Secretary of Commerce Gina Raimondo highlighted the administration’s commitment to fostering a vibrant semiconductor ecosystem within the US. The competition will concentrate on five critical research and development areas, with the expectation of awarding several $150 million federal funding grants per area. These areas include equipment and process integration, power delivery and thermal management, connector technology, chiplets ecosystem, and co-design/electronic design automation.
As AI applications continue to evolve, advanced packaging is becoming increasingly important for enhancing system performance and reducing costs. The US currently holds a mere 3% of the global packaging capacity, in stark contrast to Taiwan’s 54%. The CHIPS for America program aims to change this dynamic by establishing high-volume packaging facilities in the US by the end of the decade.
The recent announcement builds upon earlier efforts, including the National Advanced Packaging Manufacturing Program (NAPMP), which focused on substrates and materials. With the overarching goal of reducing dependency on foreign supply chains, the US is positioning itself to lead in all facets of semiconductor manufacturing, with advanced packaging playing a pivotal role.
Conclusion and Call to Action
The US is setting the stage for a significant shift in the semiconductor industry, with a $1.6 billion investment that could potentially challenge Asia’s dominance in chip packaging. For more detailed insights into this groundbreaking initiative, readers are encouraged to visit the original source.
Footnotes
Image Credit: Braden Collum via Unsplash
