CHIPS for America Week in Review

CHIPS for America Announces up to $300 million in Funding to Boost U.S. Semiconductor Packaging

On November 21, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce (DOC) is entering negotiations to invest up to $300 million in advanced packaging research projects in Georgia, California, and Arizona to accelerate the development of cutting-edge technologies essential to the semiconductor industry. The expected recipients are Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University in Arizona.

These competitively awarded research investments, each expected to total as much as $100 million, represent novel efforts in advanced substrates. Advanced substrates are physical platforms that allow multiple semiconductor chips to be assembled seamlessly together, enable high-bandwidth communication between those chips, efficiently deliver power, and dissipate unwanted heat. The advanced packaging enabled by advanced substrates translates to high performance computing for AI, next-generation wireless communication, and more efficient power electronics. Such substrates are not currently produced in the United States but are foundational to establishing and expanding domestic advanced packaging capability.

Up to $300 million in federal funding will be paired with additional investments from the private sector, bringing the expected total investment across all three projects to over $470 million. This combined effort will help ensure U.S. manufacturers stay competitive and continue to drive technological innovation, giving companies a stronger edge in global competition.

"The key to the United States’ long-term competitiveness hinges on our ability to out-innovate and out-build the rest of the world. That’s why the R&D side of the CHIPS for America Program is so fundamental to our success, and these proposed investments in advanced packaging underscore the work we’re doing to prioritize every step of the semiconductor supply chain pipeline,” said U.S. Secretary of Commerce Gina Raimondo. “Emerging technology like AI requires cutting-edge advances in microelectronics, including advanced packaging. Thanks to President Biden’s and Vice President Harris’ leadership, and through these proposed investments, we are positioning the United States as a global leader in designing, manufacturing and packaging the microelectronics that will fuel tomorrow’s innovation.”

WHAT THEY ARE SAYING:

U.S. Senator Mark Kelly (AZ) - “This award further establishes Arizona as the national leader in advanced packaging and leading-edge microchip manufacturing. Advance packaging is a key component of the microchip manufacturing process, yet most advanced packaging research and manufacturing occurs overseas. This investment builds upon other investments we’re seeing in Arizona to bring advanced packaging back to the United States. I applaud ASU for their work in developing cutting-edge technologies and their commitment to make Arizona a major player in microelectronics.” 

U.S. Congressman Greg Stanton (AZ) - “Semiconductors are the foundation for every must-win technology of the future, including artificial intelligence. The U.S. needs to be constantly innovating if we want to compete on the global stage, and there’s no institution better positioned to lead this cutting-edge research and development than Arizona State.”

Michael Crow, ASU President - “This is a critical step for U.S. semiconductor independence, and it is the area of expertise in which we are in direct competition with China to determine who will unlock the future of innovation in semiconductor chip manufacturing. ASU is well prepared with a dynamic partner in Deca Technologies, and we are eager to lead the work that will enable SHIELD USA to play a pivotal role in ensuring the country’s technological and economic future.”

Biden-Harris Administration Announces CHIPS Incentives Award with GlobalFoundries to Strengthen Essential Chip Supply for Key U.S. Industries Including Auto and Defense

On November 20, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce awarded GlobalFoundries (GF) up to $1.5 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities.

The award comes after the previously signed preliminary memorandum of terms, announced on February 19, 2024, and the completion of the Department’s due diligence. The award will bolster U.S. competitiveness in current-generation semiconductor production by supporting the company’s investment of approximately $13 billion over the next 10-plus years in its U.S manufacturing sites in New York and Vermont, which produce essential automotive, smart mobile, aerospace and defense, and communications semiconductor technologies. The Department will disburse the funds based on GF’s completion of project milestones. 

WHAT THEY ARE SAYING: 

Biden-Harris Administration Leaders  

U.S. Secretary of Commerce Gina Raimondo: “By investing in GF’s domestic manufacturing capabilities, we are helping to secure a stable domestic supply of chips that are found in everything from home electronics to advanced weapons systems. Thanks to President Biden’s leadership and because of CHIPS for America, we are strategically strengthening every part of the semiconductor supply chain to ensure we meet our national security objectives and have the ability to out-compete and out-innovate the rest of the world.” [Statement]  

White House Deputy Chief of Staff Natalie Quillian: “After we saw semiconductor supply chain disruptions during the pandemic creating a shortage of everything from cars to washing machines, President Biden got to work passing the CHIPS and Science Act to bring semiconductor manufacturing back to America. Today's award is a testament to how the Biden-Harris Administration continues to drive an American manufacturing renaissance, strengthen our supply chains, and create thousands of good-paying jobs in New York, Vermont, and communities across the country.” [Statement] 

Industry Voices 

Dr. Thomas Caulfield, president and CEO of GlobalFoundries: “The idea of strengthening U.S. semiconductor manufacturing has been five-plus years in the making. With bipartisan support, that idea evolved into the CHIPS and Science Act. GF's essential chips are at the core of U.S. economic, supply chain and national security. We greatly appreciate the support and funding from both the U.S. Government and the states of New York and Vermont, which we will use to ensure our customers have the American-made chips they need to succeed and win.” [Statement] 

Semiconductor Industry Association: “We commend the Commerce Department and GlobalFoundries for finalizing CHIPS Act incentives that will strengthen America’s economy, national security, and global competitiveness. The new investments will advance essential semiconductor production for automotive, communications, and defense applications. We urge leaders in Washington to get more CHIPS agreements finalized expeditiously to help keep America on top in chip technology for many years to come.” [Statement] 

Joe Stockunas, President of SEMI Americas: “Congratulations to the GlobalFoundries and the U.S. Department of Commerce on this CHIPS Act award for $1.5 billion in direct grants to expand domestic chipmaking capacity. The award supports GlobalFoundries’ investments in facilities in New York and Vermont, while providing vital workforce development funding to bolster the talent pipeline in these states. SEMI is pleased to see the bipartisan foundation of the CHIPS Act culminating in these awards to strengthen the semiconductor supply chain and the technological benefits it enables worldwide.” [Post] 

Members of Congress 

U.S. Senator Chuck Schumer (D-NY): “GlobalFoundries’ CHIPS award is locked in! $1.5 billion from my CHIPS & Science Law is now signed and sealed for GlobalFoundries to help expand production and build a second, cutting-edge and massive chip factory here in Malta. This final agreement locks in the federal support GlobalFoundries needs to triple its production capacity in Saratoga County, bringing thousands of good-paying manufacturing and union construction jobs, on top of its already large world-class workforce. This investment will make sure America’s semiconductor future is made in the Capital Region not China. GlobalFoundries’ robust and exciting future in the Capital Region starts today. The essential chips GlobalFoundries makes are critical for the auto industry, national defense, and dozens of other technologies from smart phones to artificial intelligence. This major investment will help secure America’s supply chains and protect against the shortages that led to skyrocketing prices for cars, computers, and more that hit families during the COVID-19 pandemic as a result of us not producing enough of these chips domestically. This investment will also help boost the domestic supply of chips our military relies on, and will keep America ahead, with GlobalFoundries helping write the next chapter of American manufacturing. Ever since GlobalFoundries’ first Fab 8 broke ground 15 years ago, I knew we only scratched the surface of the potential for Upstate NY to be a global leader in the semiconductor industry. Now with GlobalFoundries moving forward on an expansion, including building its second massive factory, America’s first National Semiconductor Technology Center down the road at Albany NanoTech, and other major investments like Micron, it is becoming clear Upstate NY will be a driving force in the world’s semiconductor future.” [Statement] 

U.S. Representative Paul Tonko (D-NY): “The investments in jobs, manufacturing, and innovation continue to pour into our region, thanks to the Biden-Harris Investing in America Agenda. I fought hard to deliver critical funding to spur our nation’s semiconductor manufacturing over the years, and I’m thrilled to see that effort paying dividends for our Capital Region communities today. This federal investment in GlobalFoundries will further strength our region’s leadership position in semiconductor development. As we celebrate this announcement, the work begins to ensure Republicans do not roll back critical investments that are growing our domestic economy and bettering our communities. I’m committed to doing all I can to protect and support these investments, and will continue working with GlobalFoundries to ensure strong labor commitments are met in the execution of this award to bolster the strong, union jobs of tomorrow.” [Statement] 

U.S. Representative Adriano Espaillat (D-NY): BIG NEWS! @CommerceGov awarded @GlobalFoundries  $1.5 billion under the CHIPS and Science Act. This comprehensive package is helping build a strong and diverse #STEM workforce, addresses our nation’s supply chain challenges, and creates many jobs across New York State. This is a win for job growth in our state. [Tweet] 

CHIPS for America Announces New Proposed $285 Million Award for CHIPS Manufacturing USA Institute for Digital Twins, Headquartered in North Carolina 

On November 19, 2024, the Biden-Harris Administration announced that the U.S. Department of Commerce and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) are entering negotiations for the Department to provide SRC $285 million to establish and operate a Manufacturing USA institute headquartered in Durham, North Carolina.

With combined funding totaling $1 billion, this investment will support the launch of the first-of-its-kind CHIPS Manufacturing USA institute. The new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) will focus on efforts to develop, validate, and use digital twins to improve domestic semiconductor design, manufacturing, advanced packaging, assembly, and test processes.

SMART USA will join an existing network of seventeen institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure. SRC is an important part of North Carolina’s research ecosystem, including decades-long relationships with North Carolina’s universities.

WHAT THEY ARE SAYING:

U.S. Congresswoman Deborah Ross (NC) - “I’m thrilled to see a CHIPS Manufacturing USA Institute will be headquartered in North Carolina. Our state continues to lead the nation in technological advancements, and there is no better place to turbocharge our country’s semiconductor manufacturing. I fought for the CHIPS and Science Act to bring needed investment’s to North Carolina innovation enterprise. I look forward to the progress and discoveries that SMART USA will make.”

U.S. Congresswoman Valerie Foushee (NC) - “I’m delighted that Durham, a city known for its innovation and collaboration, will be home to the first-ever CHIPS Manufacturing USA digital twin institute. This proposed partnership, made possible in part by the CHIPS and Science Act, will be a driving force in transforming and unlocking domestic semiconductor manufacturing and will position the United States to lead in the next generation of semiconductor technology. The SMART USA Institute will put North Carolina at the heart of this new industrial revolution, and I’m proud that our great state will serve at the forefront of enhancing our nation’s innovative edge.”

Todd Younkin, SRC President and CEO - “We are honored by CHIPS for America’s recognition of SMART USA Institute’s pivotal role in driving semiconductor innovation. This designation as the CHIPS Manufacturing USA Institute reaffirms our dedication to fostering collaboration and excellence across the semiconductor ecosystem. At its core, the SMART USA Manufacturing Institute is about bringing people together as a cohesive team. Through this collaboration, we harness the collective strengths and expertise of our partners. Teaming is the cornerstone of our strategy, and it is through this united effort that we will succeed in achieving our ambitious goals.”

CHIPS AI/AE for Rapid, Industry-informed Sustainable Semiconductor Materials and Processes (CARISSMA) Funding Opportunity

On October 30, 2024, the Biden-Harris Administration announced a Notice of Funding Opportunity (NOFO) for activities that will use cutting-edge artificial intelligence (AI) and autonomous experimentation (AE) technologies to support the long-term viability of next-generation semiconductor manufacturing. The CHIPS AI/AE for Rapid, Industry-informed Sustainable Semiconductor Materials and Processes (CARISSMA) funding opportunity will be critical in meeting the industry’s technology, economic, and sustainability goals.

On November 15th, the CHIPS Research and Development Office hosted a hybrid Proposer’s Day event to bring potential applicants together in a collaborative atmosphere to network and support partnerships among the community. The event recording and presentation are available on CHIPS.gov.

Mandatory concept papers are due January 13, 2025.

CHIPS for America in the News

Bloomberg: US to Fund Chip ‘Digital Twins’ Center to Cut R&D Costs

• New $1 billion center slated to win $285 million via Chips Act
• Officials aim to reduce chip development times by a third

[Mackenzie Hawkins, 11/19/24]

The US plans to award $285 million to a new semiconductor research center focused on digital twin technology, with the goal of reducing the cost and time of chip development by roughly a third.

The institute — a total $1 billion investment — will be headquartered in North Carolina and run by the Semiconductor Research Corp., an existing industry consortium. The Commerce Department announced Tuesday that it is entering negotiations with the SRC to provide funding from the 2022 Chips and Science Act.

The Chips Act set aside $39 billion in grants to boost domestic semiconductor manufacturing and $11 billion for research and development efforts — all geared toward limiting reliance on Asia for critical electronic components.

The money for the digital twins effort comes from the R&D pool, which will also support new centers for chip design, prototyping and packaging. Digital twins are virtual models of physical components, allowing engineers to test their ideas before launching a new fabrication process.

Raleigh News and Observer: Durham nonprofit lands $285 million CHIPS award to launch semiconductor institute

[Brian Gordan, 11/19/24]

With two months left in office, the Biden administration announced it has begun negotiating with a Durham nonprofit to fund a major semiconductor research center in North Carolina.

Gov. Roy Cooper and Durham Mayor Leonardo Williams were among officials who spoke Tuesday as the Semiconductor Research Corp. celebrated a $285 million award from the U.S. Department of Commerce through the federal CHIPS and Science Act.

Semiconductor Research Corp., or SRC, is a consortium managing university research for the benefit of its member companies, which include IBM, Intel and Taiwan Semiconductor Manufacturing Company. With backing from CHIPS funds, the organization plans to establish an institute focusing on digital twins — virtual versions of physical items — to study U.S. semiconductor production.

Called Semiconductor Manufacturing and Advanced Research with Twins or SMART USA, the center would join a network of 17 institutes nationwide that advance domestic manufacturing. SRC said its CHIPS proposal had the support of more than 150 participating organizations. In addition to the $285 million federal investment, the nonprofit expects to receive more than $750 million from private and academic partners to build the institute.

Daily Gazette: GlobalFoundries officially awarded $1.5B in CHIPS funding

[Shenandoah Briere, 11/20/24]

MALTA — After first being announced in February, semiconductor manufacturer GlobalFoundries has formally received $1.5 billion over 10 years in CHIPS and Sciences Act funds from the federal government in order to expand its fabrication facilities in an effort to strengthen the U.S. chips manufacturing supply chain.

Officially announced Wednesday morning, the funding, $1.375 billion of which would go to the company's Malta location, is expected to allow for construction of GlobalFoundries’ second 385,000-square-foot 300mm fabrication facility at its headquarters in Luther Forest Technology Park, where it makes semiconductor chips for everyday products like smartphones and airbags. The company has previously indicated that construction on the new fabrication facility is set to begin next year.

The funding would also “revitalize” GlobalFoundries Vermont fabrication facility so it can deal with new 200mm technologies and manufacture gallium nitride to be used in items like electric vehicles and smartphones. It would also allow for silicon germanium manufacturing for communications infrastructure. The Vermont site would receive $125 million.

Politico: Morning Tech

[Christine Mui, 11/21/24]

FIRST IN MT: WHO’S CASHING IN ON CHIP RESEARCH FUNDS? The Commerce Department today will unveil three teams that it plans to award $300 million for semiconductor materials research under the CHIPS and Science Act.

Chip companies Absolics in Georgia and Applied Materials in California will lead two of the projects. Arizona State University will head the third. The department opened the competition in February as part of the Biden administration’s strategy to accelerate research and development within the U.S. semiconductor industry.

Specifically, the funds will help improve advanced packaging, or the technology behind the types of chips needed to power artificial intelligence. The Commerce Department rolled out a $3 billion national program to fund new domestic projects in the sector last year, launching the $300 million competition under it and opening a second $1.6 billion funding opportunity this summer.

Times Union: GlobalFoundries signs its $1.5B CHIPS contract for second New York fab

[Larry Rulison, 11/20/24]

Sen. Charles Schumer says the agreement will "lock in" funding as Trump, GOP take power

MALTA — GlobalFoundries and the U.S. Commerce Department finalized the terms for a $1.5 billion federal grant to support a $13 billion expansion of its New York and Vermont manufacturing operations, including building a second factory at its Fab 8 campus in Malta.

U.S. Senate Majority Leader Charles E. Schumer and the Biden administration have been moving quickly to finalize several contracts with chip manufacturers that have been promised capital grants under the $52 billion CHIPS and Science Act before Republicans take control of both Congress and the White House come January.

[…]

However, Deputy Commerce Secretary Don Graves told the Times Union on Wednesday that the plan was always to get the funding contracts signed as quickly as possible. The preliminary agreements were first announced back in February.

“This was always the plan, to get the CHIPS funding out the door as quickly as possible,” Graves told the Times Union in a phone interview on Wednesday. “We knew it was critically important for us.”

WTEN Albany: $1.5 Billion awarded to GlobalFoundries Expansion

[Jamie DeLine, 11/20/24]

ALBANY, N.Y. (NEWS10)— GlobalFoundries, a semiconductor company, will be receiving $1.5 billion dollars from the federal Government to expand its current facility and build a brand-new chip manufacturing plant at its Capital region location.

“GlobalFoundries is one of only four companies around the world that produces these current and mature chips outside of China,” explained U.S. Commerce Deputy Secretary, Don Graves. ”It’s the only company headquartered in the United States. So, this brand-new facility in Malta is going to be able to produce the types of chips that will ensure we are never held hostage to other countries and their desire to give us chips or not.”

Graves said a portion of the money will also be put towards revitalizing the company’s facility in Vermont. Here in New York, it’s expected to create 1,000 manufacturing jobs and 8,000 construction jobs.

Senate Majority Leader Chuck Schumer spoke about the investment on the floor of the U.S. Senate. “The CHIPS award is now locked in,” said Schumer. “The agreement is signed, sealed, and delivered. In fact, ready to deliver a better future for upstate NY and for America. Importantly, this funding is protected for years to come.”

Deputy Secretary was asked if he had any concerns about Chip manufacturing moving forward in the future with a different administration.

“I don’t have any concerns,” said Graves. “The CHIPS and Science Act had wide bipartisan support. It’s something that the previous administration supported in terms of a focus on semi-conductors. It’s something that Democrats, Republicans and everyone in between has been very supportive of.”

About CHIPS for America  

CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.