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U.S. Announces $300 Million Investment in Semiconductor Packaging Projects



The Biden-Harris Administration has announced plans to invest up to $300 million in semiconductor packaging projects in Georgia, California, and Arizona. The funding aims to accelerate the development of advanced technologies critical to industries such as artificial intelligence (AI) and next-generation computing.


Strengthening U.S. Leadership in Semiconductors

The Department of Commerce (DOC) will support three recipients: Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University in Arizona. Each project is set to receive up to $100 million, with additional private-sector contributions bringing the total investment to over $470 million.


Focus on Advanced Substrate Technology

The projects will focus on advanced substrates, essential for connecting semiconductor chips, improving performance, and enabling innovations like high-performance AI systems and efficient electronics. Currently, these substrates are not produced in the U.S., making the investment crucial for domestic capability.


Key Statements from Officials

Commerce Secretary Gina Raimondo emphasized the importance of innovation in maintaining U.S. competitiveness. She stated, "These investments prioritize every step of the semiconductor supply chain pipeline to ensure America leads in microelectronics manufacturing."


Details of Funded Projects


Absolics Inc. (Georgia):

Absolics aims to revolutionize glass-core substrate manufacturing through its SMART Packaging Program. Collaborating with over 30 partners, it will also offer workforce training through technical colleges and programs for veterans and HBCUs.


Applied Materials Inc. (California):

Applied Materials is developing silicon-core substrate technology for advanced packaging and high-performance computing systems. The project includes educational initiatives to strengthen the talent pipeline between universities and the semiconductor industry.


Arizona State University (Arizona):

ASU leads research on fan-out-wafer-level processing, an advanced microelectronics packaging technique. With a team spanning academia, businesses, and non-profits, ASU will develop manufacturing capabilities and workforce training programs, including partnerships with HBCUs and Native American organizations.


Building a Robust Semiconductor Ecosystem

The CHIPS for America initiative is part of a broader plan to boost U.S. semiconductor manufacturing. It includes a $3 billion effort under the National Advanced Packaging Manufacturing Program to foster innovations and establish a domestic advanced packaging industry within the next decade.


This initiative aligns with President Biden’s economic goals to create jobs, stimulate private investments, and strengthen American technological leadership.

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