The U.S. government allocates up to $300 million to advance domestic chiplet packaging technology and substrate manufacturing, aiming to strengthen the nation's semiconductor capabilities.
In a strategic move to bolster the United States' semiconductor packaging capabilities, the U.S. government has announced a substantial investment of up to $300 million, targeting advancements in chiplet packaging technology and substrate manufacturing. This initiative, part of the CHIPS Act, aims to enhance domestic production and reduce reliance on foreign suppliers.
The funding is allocated to three key projects:
- Absolics in Georgia: Absolics is spearheading the development of glass-core substrate panels through its Substrate and Materials Advanced Research and Technology (SMART) Packaging Program. Collaborating with over 30 partners, the company has already secured $75 million to establish a glass-core packaging ecosystem, aiming to advance current technologies and support future high-volume manufacturing capabilities.
- Applied Materials in California: In partnership with ten collaborators, Applied Materials is focusing on scaling silicon-core substrate technology for next-generation advanced packaging and 3D heterogeneous integration. This technology is poised to enhance the U.S.'s leadership in advanced packaging, facilitating the development of energy-efficient artificial intelligence (AI) and high-performance computing (HPC) systems domestically.
- Arizona State University (ASU) in Tempe: ASU's Advanced Electronics and Photonics Core Facility is exploring the commercial viability of fan-out wafer-level processing (FOWLP) at 300 mm wafer-level and 600 mm panel-level manufacturing. This technology, currently unavailable as a commercial capability in the U.S., is being developed in partnership with Deca Technologies and other stakeholders in materials, equipment, chiplet design, electronic design automation, and manufacturing.
These investments are expected to catalyze additional private sector contributions, bringing the total anticipated investment across all three projects to over $470 million. The focus on advanced packaging, enabled by innovative substrates, is crucial for high-performance computing applications in AI, next-generation wireless communication, and more efficient power electronics.
By establishing and expanding advanced packaging capabilities within the U.S., this initiative seeks to create a robust domestic supply chain, reduce dependency on international sources, and position the nation at the forefront of semiconductor innovation.
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