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

This article originally appeared in AI Business.

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 US, 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 US will have multiple advanced packaging options across the country and push the envelope in new packaging technologies.

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“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:

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 US that outpaces the world through innovation driven by robust R&D,” said Laurie Locascio, Under Secretary of Commerce for Standards and Technology.

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“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.

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.