Biden-Harris Administration to Invest Up to $1.6 Billion to Establish and Accelerate Domestic Capacity Advanced Packaging

July 9, 2024 -- Today, as part of President Biden’s Investing in America agenda, the U.S. Department of Commerce issued a Notice of Intent (NOI) to open a competition for new research and development (R&D) activities that will establish and accelerate domestic capacity for semiconductor advanced packaging. The CHIPS for America program anticipates up to $1.6 billion in funding innovation across five R&D areas, as outlined in the vision for the National Advanced Packaging Manufacturing Program (NAPMP). Through potential cooperative agreements, CHIPS for America would make several awards of approximately $150 million federal funding available per award in each research area. These awards will leverage private sector investments from industry and academia.

“President Biden was clear that we need to build a vibrant domestic semiconductor ecosystem here in the U.S., and advanced packaging is a huge part of that. Now, thanks to the Biden-Harris Administration’s commitment to investing in America, the U.S. will have multiple advanced packaging options across the country and push the envelope in new packaging technologies. 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.” said U.S. Secretary of Commerce Gina Raimondo.

Advanced packaging capacity and R&D has never been in higher demand or more important to advances in semiconductor technology. Emerging artificial intelligence (AI)-driven applications are pushing the boundaries of current technologies like high performance computing and low power electronics, requiring leap-ahead advances in microelectronics capabilities, especially advanced packaging. Advanced packaging allows manufacturers to make improvements in all aspects of system performance and function and to shorten time to market. Additional benefits include a reduced physical footprint, lower power, decreased costs, as well as increased chiplet reuse. Achieving these goals requires coordinated investments to support integrated R&D activities to establish leading-edge domestic capacity for semiconductor advanced packaging.

“The National Advanced Packaging Manufacturing Program will enable a packaging sector within the United States that outpaces the world through innovation driven by robust R&D,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio. “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.

“Under President Biden’s leadership, we’re bringing semiconductor manufacturing back to the United States, teaming with industry to build factories, supply chains, and jobs in communities across the country. That’s how we win today, and CHIPS R&D is how we win tomorrow,” said Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy. “Investing in research to accelerate new advanced semiconductor packaging approaches will help this pivotal and fast-changing industry thrive here at home now and into the future.”

Funded activities are expected to be relevant to one or more of five R&D areas:  

1. Equipment, tools, processes, and process integration;  
2. Power delivery and thermal management;  
3. Connector technology, including photonics and radio frequency (RF);  
4. Chiplets ecosystem;  
5. and co-design/electronic design automation (EDA).  

In addition to the R&D areas, the funding opportunity is expected to include opportunities for prototype developments.

More information about the NOI will be shared in an upcoming webinar. Follow CHIPS.gov for updates.

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.  

CHIPS R&D released the first funding opportunity for the National Advanced Packaging Manufacturing Program (NAPMP) in February 2024. That funding opportunity requested applications for R&D activities that will establish and accelerate domestic capacity for advanced packaging substrates and substrate materials, a key technology for manufacturing semiconductors.  

Applicants submitted over 100 concept papers representing 28 states, and on May 22, 2024, the Department of Commerce announced that eight teams have been selected to submit full applications for the NAPMP funding opportunity for materials and substrate materials.  

Final projects will play a vital role in helping to ensure that American innovation drives cutting-edge developments in semiconductor R&D and manufacturing. The CHIPS for America program anticipates awarding approximately $300 million in amounts up to approximately $100 million over up to 5 years per award. Program awards may be leveraged by voluntary co-investment. Full applications for the first NAPMP funding opportunity were due on July 3, 2024.  

Visit https://www.chips.gov to learn more.