Photo by Louis Reed on Unsplash

$3 billion advanced packaging program aims to advance U.S. semiconductor sector

November 21, 2023

Advanced chip packaging is essential to manufacturing state-of-the-art semiconductors, but only a small percentage of it is done in North America.

The White House this week said it had a plan to help the U.S. catch up, announcing the release of $3 billion in funding to drive leadership in advanced packaging technology through the new National Advanced Packaging Program (NAPMP), a part of the Department of Commerce’s CHIPS for America program.

A key component of the plan includes developing a centralized advanced packaging piloting facility for research and development. An initial funding opportunity for this program in materials and substrates is expected to be announced in early 2024, the Department of Commerce said.

Most advanced packaging is concentrated in Asia, where Taiwan has dominated semiconductor production and China has also been investing in advanced packaging techniques. North America accounted for only 3% of global advanced packaging production as of 2021 according to a recent study.

“Within a decade, we envision that America will both manufacture and package the world’s most sophisticated chips,” said Laurie Losacio, director of the National Institute of Standards and Technology. “This means both onshoring a high-volume advanced packaging industry that is self-sustaining, profitable and environmentally sound, and conducting the research to accelerate new packaging approaches to market.”

Semiconductors are an essential component of electronic devices that drive communications, computing, healthcare, military systems, transportation, clean energy and countless other applications. Advanced packaging is key to helping them increasing signal speed and overall processing power.

Advanced packaging involves placing multiple chips with a variety of functions in a densely interconnected two- or three-dimensional “package,” which advanced semiconductors need to optimally operate. In addition to access to advanced packaging facilities, cooperation between chip designers, materials scientists, process and mechanical engineers and measurement scientists is also required, the White House said.

The NAPMP is one of four CHIPS for America R&D programs. In addition to the new R&D facility, it aims to facilitate workforce training programs and funding for various projects to support the semiconductor industry, including:

  • Materials and substrates
  • Equipment, tools and processes
  • Power delivery and thermal management 
  • Photonics and connectors
  • A chiplet ecosystem 
  • Co-design for test, repair, security, interoperability and reliability

NAPMP will hold an online briefing about the program’s vision, strategy and next steps at 3 p.m. (Eastern) Nov. 27, 2023.

Strategic Partnerships, Inc. can provide information on contract opportunities, plus existing and future government funding. For more information, contact

Miles Smith

Miles Smith has more than two decades of communications experience in the public and private sectors, including several years of covering local governments for various daily and weekly print publications. His scope of work includes handling public relations for large private-sector corporations and managing public-facing communications for local governments.

Smith has recently joined the team as a content writer for SPI’s news publications, which include Texas Government Insider, Government Contracting Pipeline and its newest digital product, Government Market News, which launched in September 2023. He graduated from Texas A&M University with a bachelor’s in journalism.

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