The U.S. Department of Commerce is entering negotiations to invest up to $300 million from the CHIPS and Science Act in advanced packaging research projects aimed at accelerating the development of cutting-edge technologies essential for the semiconductor industry.
The investments, expected to be distributed among three entities in Georgia, California, and Arizona, will focus on advancing substrates critical to the next generation of semiconductor packaging.
The recipients of these funds will include Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University (ASU) in Arizona.
Each project is expected to receive up to $100 million, with the combined federal funding potentially bringing the total investment across all three initiatives to over $470 million, including private-sector contributions.
Advanced Substrates and Their Role in Semiconductor Innovation
Advanced substrates are essential to the future of semiconductor technology. These physical platforms allow multiple semiconductor chips to be seamlessly integrated, facilitating high-bandwidth communication, efficient power delivery, and effective heat dissipation.
As demand for high-performance computing, artificial intelligence (AI), next-generation wireless communication, and power electronics continues to grow, current packaging technology is no longer sufficient.
Developing advanced substrates will be key to sustaining and advancing industries that are critical to the future economy.
At present, the United States does not produce these advanced substrates, which are foundational for creating high-performance semiconductor packaging. The U.S. Department of Commerce’s investment is intended to help establish a domestic advanced packaging capability, strengthening the nation’s position in global semiconductor manufacturing and innovation.
Details of the Proposed Projects
- Absolics Inc., Covington, Georgia
Absolics, in collaboration with over 30 partners including academic institutions, businesses, and non-profits, plans to develop next-generation glass-core substrates for semiconductor packaging. Through its Substrate and Materials Advanced Research and Technology (SMART) Packaging Program, Absolics aims to revolutionize glass-core panel manufacturing, a technology that could leapfrog current capabilities. In addition to technical advancements, Absolics will also focus on workforce development, creating training and internship opportunities in partnership with technical colleges and programs aimed at underrepresented communities. - Applied Materials Inc., Santa Clara, California
Applied Materials is working on developing disruptive silicon-core substrate technologies that will advance 3D heterogeneous integration and next-generation packaging. The company’s effort, alongside a team of 10 collaborators, aims to solidify the U.S.’s leadership in the field of advanced packaging while enabling the development of energy-efficient AI and high-performance computing systems. Applied Materials also plans to strengthen the semiconductor workforce through partnerships with state universities and internship programs designed to bridge the gap between academia and industry. - Arizona State University, Tempe, Arizona
ASU is leading a project to develop fan-out-wafer-level-processing (FOWLP) technologies for advanced microelectronics packaging. This initiative, housed at ASU’s Advanced Electronics and Photonics Core Facility, will explore the commercial viability of new wafer-level and panel-level manufacturing technologies. ASU’s project will also include a significant focus on workforce development, offering training programs and certifications aimed at preparing the next generation of workers in the semiconductor industry. Key collaborators include Deca Technologies and a wide range of academic, industrial, and non-profit partners.
Strengthening U.S. Competitiveness
The U.S. Department of Commerce’s proposed investments are part of a broader effort to ensure that the United States remains competitive in the global semiconductor market.
The semiconductor industry is integral to technological innovation, with advanced packaging technologies driving improvements in AI, communications, and electronics.
The ability to produce advanced substrates domestically is seen as critical for maintaining U.S. leadership in these fields.
The CHIPS National Advanced Packaging Manufacturing Program (NAPMP), which supports these projects, is part of a larger strategy to foster a robust domestic advanced packaging industry.
The program is designed to advance critical technologies in semiconductor packaging, accelerating their transition to U.S. manufacturing at scale.
The expected outcome is the creation of a self-sustaining domestic industry capable of producing advanced semiconductor packages for both U.S.-manufactured and globally sourced chips.
A key component of all three projects is the focus on workforce development. Each recipient has committed to creating educational opportunities that will help equip workers with the skills needed to support the growing semiconductor industry.
These initiatives include partnerships with universities, technical colleges, and workforce development organizations, plus efforts to ensure that underrepresented groups have access to training and job opportunities in the semiconductor sector.
The Department of Commerce’s proposed investments in advanced packaging research represent a significant step in strengthening the U.S. semiconductor industry.
By advancing the development of advanced substrates and packaging technologies, these projects aim to enhance the nation’s ability to innovate and compete in a rapidly evolving global market.
With an estimated total investment of over $470 million, these initiatives are poised to play a critical role in shaping the future of semiconductor manufacturing in the United States.
CHIPS for America has awarded over $19 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 20 states are expected to create over 125,000 jobs.
The bipartisan CHIPS and Science Act, which authorized nearly $280 billion for domestic research and manufacturing of semiconductors, was signed into law by President Joe Biden in 2022, in response to the United States falling behind in production, which resulted in chip shortages for appliances, vehicles and computers during the COVID-19 pandemic.