Keaton PetersMore manufacturing of advanced semiconductors is coming to U.S. soil. The U.S. Department of Commerce is finalizing negotiations to invest up to $300 million across three advanced semiconductor packaging research projects in Georgia, California and Arizona.
The funding, announced through the CHIPS for America program, looks to accelerate development of advanced semiconductor technology that is critical for artificial intelligence and next-generation computing but currently not produced in the United States.
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The federal investment will be matched with private sector funding, bringing the total expected investment to over $470 million. The funding is being awarded through the National Advanced Packaging Manufacturing Program, which has allocated approximately $3 billion to develop and scale up advanced semiconductor technologies in the United States.
This funding represents part of the government’s broader economic strategy to revitalize American manufacturing and ensure technological competitiveness. The CHIPS and Science Act, passed in 2022, allocated $52.7 billion for American semiconductor research, development, and manufacturing.
Advanced packaging represents a critical link in semiconductor manufacturing that the U.S. needs to establish domestically. Known also as substrates, the packaging technology serves as a physical platform that enables multiple semiconductor chips to be assembled while managing power delivery and heat dissipation. These capabilities are essential for artificial intelligence, high-performance computing and next-generation wireless communications.
The United States currently lacks domestic production of these advanced substrates, creating a strategic vulnerability in the semiconductor supply chain. To address this, three new manufacturing projects are set to receive $100 million each.
The largest project award will go to Absolics Inc. in Covington, Georgia, which is set to develop glass-core substrate panel manufacturing capabilities. The company is partnering with over 30 organizations including academic institutions and businesses to build what they’re calling the Substrate and Materials Advanced Research and Technology (SMART) Packaging Program.
In California, Applied Materials plans to use its award to develop silicon-core substrate technology for next-generation advanced packaging and 3D integration. The company is working with 10 collaborators to advance America’s capabilities in energy-efficient AI and high-performance computing systems.
The third award will go to Arizona State University to develop fan-out-wafer-level-processing (FOWLP) technology. Working with industry partner Deca Technologies and over 10 other organizations, ASU will establish an interconnect foundry linking advanced packaging programs with semiconductor manufacturers.
Beyond the technical research, all three projects include significant workforce development components. Absolics plans to create training and internship opportunities through a network of technical colleges and historically Black colleges and universities. Applied Materials will strengthen the pipeline between state universities and the semiconductor industry. ASU’s program includes technical credentials and quick start programs for working professionals to enter the industry.
The Department of Commerce expects to finalize negotiations with the three recipients in the coming months.
Photo by Maxence Pira on Unsplash
