The U.S. Department of Commerce has unveiled plans to invest up to $300 million in advanced semiconductor packaging projects in Georgia, California, and Arizona. The funding, part of the CHIPS for America initiative, aims to accelerate the development of advanced substrates essential for high-performance computing, artificial intelligence (AI), next-generation wireless communication, and energy-efficient electronics. The targeted recipients are Absolics Inc., Applied Materials Inc., and Arizona State University.
Each project is set to receive up to $100 million in federal funding, supplemented by private-sector contributions, pushing the total investment to over $470 million. These projects focus on advanced substrates, the platforms that connect and integrate multiple semiconductor chips. Currently, the U.S. lacks domestic production of these substrates, making these investments critical for maintaining technological leadership and competitiveness.
The proposed initiatives include research into glass-core, silicon-core, and wafer-level manufacturing technologies. Each recipient will also focus on workforce development, collaborating with universities, technical colleges, and organizations supporting veterans, underrepresented groups, and other key demographics to build a pipeline of skilled professionals.
Key Points
• Absolics Inc. (Covington, Georgia):
• Develops advanced glass-core substrate manufacturing technology.
• Leads the Substrate and Materials Advanced Research and Technology (SMART) Packaging Program.
• Collaborates with over 30 partners, including academic institutions, businesses, and nonprofits.
• Focuses on workforce training for technical colleges, HBCU CHIPS Network, and veterans’ programs.
• Applied Materials Inc. (Santa Clara, California):
• Pioneers silicon-core substrate technology for next-generation packaging and 3D heterogeneous integration.
• Partners with 10 collaborators to develop energy-efficient systems for AI and high-performance computing.
• Implements workforce programs to strengthen training pipelines with U.S. universities.
• Arizona State University (Tempe, Arizona):
• Advances wafer-level and panel-level manufacturing technologies.
• Leads a consortium of businesses, universities, and nonprofits, including Deca Technologies.
• Builds a national workforce pipeline through quick-start programs, microcredentials, and inclusion of the HBCU CHIPS network.
“Advanced packaging is essential to the development of the advanced semiconductors that are the drivers of emerging technology like artificial intelligence,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “These first investments of the National Advanced Packaging Manufacturing Program will drive breakthroughs that address a critical need in the CHIPS for America’s mission to create a robust domestic packaging industry where advanced node chips manufactured in the U.S. and abroad can be packaged within the United States.”
