$285 million designated for North Carolina semiconductor institute

November 22, 2024

U.S. Department of Commerce has announced that it is beginning negotiations with the Semiconductor Research Corporation Manufacturing Consortium (SRC) to provide $285 million to create and run a Manufacturing USA Institute in Durham, N.C. Additional contributions bring the total to $1 billion to support the launch of the institute. 

The Semiconductor Manufacturing and Advanced Research with Twins USA (SMART USA) facility will focus on using so-called “digital twins” to enhance semiconductor design, manufacturing, advanced packaging, assembly and testing in the U.S.  

Digital twins are virtual representations of physical objects, such as chips or complex machinery. These digital models can be used by engineers and researchers to design, test and refine processes virtually before implementing them in the physical world. This approach allows for the integration of nascent technologies such as artificial intelligence, which can improve chip design, boost production efficiency, and cut costs by reducing errors and bringing operations online more quickly. 

RELATED: Albany lands flagship $825 million federal semiconductor tech center

The Durham facility, the CHIPS Manufacturing USA Institute, will join a network of 17 other institutes aimed at improving U.S. manufacturing competitiveness, research and development. SRC has been a key player in North Carolina’s research community for several years, building strong partnerships with the state’s universities. 

SRC is a nonprofit that collaborates with industry, government and academic partners to guide, fund and manage university research for its member companies, playing a crucial role in shaping the research and development strategies of industry leaders. Members get access to research findings, intellectual property and skilled students, helping them stay competitive in the global market and build the future workforce. 

“America’s technological leadership on the world stage depends on its ability to collaborate with the best and brightest around the globe,” Commerce Secretary Gina Raimondo said. “We’re opening new avenues to better safeguard U.S. national security and further technological innovation with the establishment of the SMART USA Institute. With new digital Twin capabilities, America is fostering unparalleled opportunities to collaborate with experts and researchers anywhere in the world to develop the next frontier of technological advancements in the semiconductor industry.”  

Digital twin technology also creates new job opportunities by offering real-time feedback, hands-on learning and access to systems that were previously out of reach. With these tools, researchers and technicians can develop advanced skills, create innovative systems and materials, and maintain a focus on workplace safety. 

SMART USA will bring together companies, startups, researchers and academic institutions while offering access to state-of-the-art physical resources and innovative digital tools to:   

  • Accelerate the advancement and use of cutting-edge semiconductor technologies – By simplifying development processes and reducing the time it takes to bring products to market, SMART USA aims to drive faster innovation in U.S. chip design and manufacturing.   
  • Reduce the time and costs associated with chip production- The institute will use digital twins to implement more efficient design and validation processes, helping to lower expenses and while improving productivity.   
  • Train the next generation of semiconductor professionals – SMART USA will develop programs focused on building skills and preparing workers to meet the growing demands of the industry. 

“We are honored by CHIPS for America’s recognition of SMART USA Institute’s pivotal role in driving semiconductor innovation,” Executive Director of SMART USA Todd Younkin said. “This designation as the CHIPS Manufacturing USA Institute reaffirms our dedication to fostering collaboration and excellence across the semiconductor ecosystem. At its core, the SMART USA Manufacturing Institute is about bringing people together as a cohesive team.”  

SMART USA and its anticipated members include over 150 partners from more than 30 states, representing industry, academic institutions and all aspects of the supply chain for design and manufacturing. The collaboration will also involve 10 national laboratories, five Manufacturing USA institutes, five economic development organizations and four trade and union groups. 

Within five years, SMART USA plans to:   

  • Bring together key players from semiconductor design, manufacturing, advanced packaging, assembly and testing to tackle challenges related to digital twin technology.   
  • Cut U.S. chip production costs by at least 35% by using digital twins to enhance capacity planning, optimize production, upgrade facilities and enable real-time process adjustments.   
  • Shorten development cycles by 30% for semiconductor manufacturing, advanced packaging, assembly and testing, while speeding up the adoption of new tools, materials and processes.   
  • Reduce greenhouse gas emissions by 25% in semiconductor manufacturing through better sustainability practices.   
  • Train more than 100,000 workers and students in digital twin technology to build a skilled workforce for the future. 

Image by Dmitry Steshenko from Pixabay

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