CHIPS for America Announces Funding Opportunity to Expand U.S. Semiconductor Packaging

Today, the U.S. Department of Commerce issued a Notice of Funding Opportunity (NOFO) to seek applications for research and development (R&D) activities that will establish and accelerate domestic capacity for advanced packaging substrates and substrate materials, a key technology for manufacturing semiconductors. The CHIPS for America program anticipates approximately $300 million in funding innovation across multiple technologies ranging from semiconductor-based to glass and organics. This is the third NOFO released overall by CHIPS for America, and the first that is focused on R&D.

President Biden signed the bipartisan CHIPS and Science Act into law on August 9, 2022. The Department of Commerce is overseeing

$50 billion to revitalize the U.S. semiconductor industry and strengthen the country’s economic and national security. CHIPS for America R&D within the U.S. Department of Commerce is responsible for administering $11 billion to advance U.S. leadership in semiconductor R&D. CHIPS R&D is a critical part of President Biden’s agenda to support American innovation for decades to come.

Emerging applications like artificial intelligence, advanced telecommunications, biomedical devices, and autonomous vehicles require leap-ahead advances in microelectronics capabilities. Improving all aspects of system performance to support the breadth of new semiconductor applications will require advanced packaging. The path to advanced packaging starts with substrates, which are the foundations on which systems are built. More capable substrates open the door to innovation at every other level in the packaging process.

“CHIPS for America is delivering on its vision to make sure new leading-edge chip architectures can be invented in our research labs, designed for every end-use application, manufactured at scale, and packaged with the most advanced technologies. Within a decade, research and activities funded by this advanced packaging program, coupled with CHIPS manufacturing incentives, will establish a vibrant, self-sustaining, and resilient onshore packaging industry, helping ensure our country is a leader in advanced semiconductor manufacturing.” Said U.S. Secretary of Commerce Gina Raimondo.

“Materials and substrates are foundational to achieving the necessary advances in advanced packaging to ensure U.S. leadership in the global semiconductor ecosystem,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio. “With this funding opportunity we are taking the first step toward strengthening domestic advanced packaging approaches so that semiconductor manufacturers can access a full suite of U.S.-based manufacturing capabilities to bring their most innovative solutions to market.”

Funded activities are expected to include, but not necessarily be limited to, basic and applied research, substrate and demonstration device development and production, commercial viability and domestic manufacturing, integrated workforce education and training, and pilot-level substrate production.

CHIPS for America will provide a briefing on details of the NOFO on March 1, 2024, at 3pm ET. Webinar participants must register in advance.