US Invests $1.6B in Next-Gen Semiconductor Packaging Research

A new federal program aims to augment chip packaging, boost AI capabilities and challenge Asia's dominance in semiconductor tech

Ben Wodecki, Jr. Editor

July 17, 2024

3 Min Read
Digital render of a next-generation CPU
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The Commerce Department is launching a program to provide up to $1.6 billion in funding as part of a competition into advanced chip research and development.

The CHIPS for America’s National Advanced Packaging Manufacturing Program will encourage semiconductor manufacturers to explore advanced packaging or solutions that utilize multiple chips and processes on a single unit. 

The ever-increasing demand for AI requires more powerful hardware. Advanced packaging techniques, such as 3D integration and chiplet-based designs, enable manufacturers to combine multiple processors and different types of chips into a single package.

The more compact hardware solutions reduce the physical footprint of systems while offering improved power efficiency.

Asia Pacific leads the advanced packaging space, according to figures from Precedence Research, however, North America is expected to be among the fastest-growing players in the market.

In a notice of intent, the Commerce Department announced plans to open the research and development project, stating that the program would “establish and accelerate domestic capacity for semiconductor advanced packaging.”

“President Biden was clear that we need to build a vibrant domestic semiconductor ecosystem here in the U.S., and advanced packaging is a huge part of that,” said Commerce Secretary Gina Raimondo. “Now, thanks to the Biden-Harris Administration’s commitment to investing in America, the U.S. will have multiple advanced packaging options across the country and push the envelope in new packaging technologies.

Related:US Invests $285M in Digital Twins for AI Chips to Boost Supply Chain

“This announcement is just the most recent example of our commitment to investing in cutting-edge R&D that is critical to creating quality jobs in the U.S. and making our country a leader in advanced semiconductor manufacturing.”

The program will explore five areas related to advanced packaging, which will be explored in three state-of-the-art semiconductor research facilities set to open in 2025, 2026 and 2028.

They include:

  • Connector technology, including photonics and radio frequency

  • Chiplets ecosystem

  • Co-design/electronic design automation

  • Equipment, tools, processes and process integration

  • Power delivery and thermal management

The program will also support opportunities for prototype development.

Locations and partners for the research facility sites will be chosen by the Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC).

“The National Advanced Packaging Manufacturing Program will enable a packaging sector within the U.S. that outpaces the world through innovation driven by robust R&D,” said  Laurie E. Locascio, Under Secretary of Commerce for Standards and Technology. “Within a decade, through R&D funded by CHIPS for America, we will create a domestic packaging industry where advanced node chips manufactured in the U.S. and abroad can be packaged within the United States and where innovative designs and architectures are enabled through leading-edge packaging capabilities.

Related:Micron Awarded $6.1B to Expand Chip Manufacturing in New York, Idaho

Program funding was made available under the CHIPS and Science Act. The legislation has also awarded billions of dollars in tax breaks to semiconductor manufacturers including Samsung, Micron, Intel and Taiwan Semiconductor Manufacturing Company.

About the Author

Ben Wodecki

Jr. Editor

Ben Wodecki is the Jr. Editor of AI Business, covering a wide range of AI content. Ben joined the team in March 2021 as assistant editor and was promoted to Jr. Editor. He has written for The New Statesman, Intellectual Property Magazine, and The Telegraph India, among others. He holds an MSc in Digital Journalism from Middlesex University.

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