The Department of Commerce recently announced four major CHIPS Act awards, reflecting continued progress in revitalizing the U.S. semiconductor industry. These investments span a range of initiatives, from boosting manufacturing to advancing critical technologies, all aimed at strengthening domestic semiconductor production and reducing reliance on foreign suppliers.
Rapid Rollout of CHIPS Act Awards, Scaling Capacity Across the Value Chain
The first announcement revealed a $300 million funding boost to support semiconductor packaging. This investment targets the development of advanced facilities that will produce critical components for cutting-edge chips, ensuring the U.S. remains competitive in global technology markets. The expected recipients are Absolics in Georgia, Applied Materials in California, and Arizona State University in Arizona.
Another award is a CHIPS Incentives Award granted to GlobalFoundries to expand its production capacity. This funding will enable the company to scale operations in New York and Vermont, increasing the domestic supply of advanced chips that power industries from healthcare to defense.
The Department of Commerce additionally announced a proposed $285 million award under the CHIPS program to support workforce development and research in semiconductor technologies. This initiative would fund the Semiconductor Manufacturing and Advanced Research with Twins USA Institute (SMART), which will focus on the use of digital twins to improve semiconductor design.
Finally, preliminary agreements with Corning and Powerex would fund capacity expansion at facilities in Canton, NY, and Youngwood, PA. Corning will enhance its production of ultra-pure materials used in semiconductor manufacturing, ensuring a reliable supply chain for these essential components. Powerex will increase its production capacity for semiconductor power modules for critical defense applications including the F-35.
Continued Momentum of the CHIPS Act
These announcements underscore the growing momentum of the CHIPS Act in re-establishing the U.S. as a global leader in semiconductor production. By investing in infrastructure, scaling manufacturing, and fostering innovation, the CHIPS Act is not only addressing supply chain vulnerabilities but also creating jobs and driving technological advancements. Together, these efforts are shaping a more resilient, self-sufficient semiconductor industry that will power America’s future.
Read More:
- Public Spend Forum’s Market Report on Microelectronics
- Dept. of Commerce Makes CHIPS Act Awards to TSMC and Akash Systems
- Dept. of Commerce Announces CHIPS Act R&D Flagship Facilities
- Dept. of Commerce Announces Awards to Infinera and Hemlock Semiconductor for Semiconductor Materials
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