The US is betting huge on the way forward for semiconductor expertise, launching a $1.6 billion competitors to revolutionise chip packaging and problem Asia’s longstanding dominance in the sphere. On July 9, 2024, the US Division of Commerce unveiled its bold plan to turbocharge home superior packaging capabilities, a important but usually missed facet of semiconductor manufacturing.
This transfer, a part of the Biden-Harris Administration’s CHIPS for America program, comes because the US seeks to revitalise its semiconductor trade and cut back dependence on international suppliers. Superior packaging, a vital step in semiconductor manufacturing, has lengthy been dominated by Asian international locations like Taiwan and South Korea. By investing closely in this space, the US goals to reshape the worldwide semiconductor panorama and place itself on the forefront of next-generation chip expertise, marking a big shift in the trade’s steadiness of energy.
US Secretary of Commerce Gina Raimondo emphasised the significance of this transfer, stating, “President Biden was clear that we want to construct a vibrant home semiconductor ecosystem right here in the US, and superior packaging is a large a part of that. Thanks to the Biden-Harris Administration’s dedication to investing in America, the US may have a number of superior packaging choices throughout the nation and push the envelope in new packaging applied sciences.”
The competitors will give attention to 5 key R&D areas: tools and course of integration, energy supply and thermal administration, connector expertise, chiplets ecosystem, and co-design/digital design automation. The Division of Commerce anticipates making a number of awards of roughly $150 million every in federal funding per analysis space, leveraging extra investments from trade and academia.
This strategic funding comes at a vital time, as rising AI purposes are pushing the boundaries of present applied sciences. Superior packaging permits for enhancements in system efficiency, diminished bodily footprint, decrease energy consumption, and decreased prices – all important elements in sustaining technological management.
The Biden-Harris Administration’s push to revitalise American semiconductor manufacturing comes as the worldwide chip scarcity has highlighted the dangers of overreliance on international suppliers. Asia, significantly Taiwan, presently dominates the superior packaging market. In accordance to a 2021 report by the Semiconductor Business Affiliation, the US accounts for less than 3% of world packaging, testing, and meeting capability, whereas Taiwan holds a 54% share, adopted by China at 16%.
Underneath Secretary of Commerce for Requirements and Know-how and Nationwide Institute of Requirements and Know-how (NIST) Director Laurie E. Locascio outlined an bold imaginative and prescient for this system: “Inside a decade, by means of R&D funded by CHIPS for America, we’ll create a home packaging trade the place superior node chips manufactured in the US and overseas will be packaged throughout the States and the place modern designs and architectures are enabled by means of modern packaging capabilities.”
The announcement builds on earlier efforts by the CHIPS for America program. In February 2024, this system launched its first funding alternative for the Nationwide Superior Packaging Manufacturing Program (NAPMP), specializing in superior packaging substrates and substrate supplies. That initiative garnered vital curiosity, with over 100 idea papers submitted from 28 states. On Might 22, 2024, eight groups have been chosen to submit full purposes for funding of up to $100 million every over 5 years.
In accordance to Laurie, the aim is to create a number of high-volume packaging services by the last decade’s finish and cut back reliance on Asian provide traces that pose a safety threat that the US “simply can’t settle for.” In brief, the federal government is prioritising making certain America’s management in all components of semiconductor manufacturing, “of which superior packaging is without doubt one of the most fun and important areas,” White Home spokeswoman Robyn Patterson mentioned.
The most recent competitors is anticipated to appeal to vital curiosity from the US semiconductor ecosystem and shift that steadiness. It guarantees substantial federal funding and the chance to form the way forward for American chip manufacturing. As the worldwide demand for superior semiconductors continues to develop, pushed by AI, 5G, and different rising applied sciences, the stakes for technological management have by no means been larger.
Because the US embarks on this bold endeavour, the world will see if this $1.6 billion wager can problem Asia’s stronghold on superior chip packaging and restore America’s place on the forefront of semiconductor innovation.
(Photograph by Braden Collum)
See additionally: Global semiconductor shortage: How the US plans to close the talent gap
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