CHIPS Act will support new California semiconductor manufacturing facility
The U.S. Department of Commerce has agreed to provide up to USD 18.2 million in direct funding to Akash Systems to help develop a 40,000-square-foot cleanroom space for advanced semiconductor manufacturing in West Oakland, California.
This CHIPS Act funding — alongside contributions from Akash, venture capital firms, and other private investors — will support a USD 121 million project, enabling Akash to leverage its IP and experience in developing semiconductor technologies for critical markets such as communications and defense. The project is set to generate over 400 direct manufacturing and construction jobs.
The proposed investment would support the construction of 40,000 square foot cleanroom space within an existing building to transform it into a facility for semiconductor manufacturing.
Through this proposed investment, the Biden-Harris Administration would help Akash construct a semiconductor manufacturing facility in West Oakland, California, to manufacture various Diamond Cooling substrates, devices, and systems at scale.
Rooted in Akash’s expertise in integrating synthetic diamond substrates with compound semiconductor materials like Gallium Nitride, the company utilises its Diamond Cooling technology to improve the thermal performance of semiconductors that need to maintain high-performance capabilities in challenging environments.This technology is shown to improve heat dissipation of semiconductor devices, which strengthens performance and reliability in microelectronic systems. Additionally, Akash is advancing its GPU-cooling solutions to support thermal management in AI-focused data centers.
“This proposed funding is an important milestone for Akash Systems and for innovative US technology,” said Felix Ejeckam, Akash Systems co-founder and CEO, in a press release. “As a U.S. company developing next-generation semiconductor technology, this validates our vision and strategy, helping us to deliver cutting-edge solutions that address thermal challenges in today’s high-performance compute and communication systems. We’re excited to drive this advancement forward for the industry and for the future of American technology.”
The company also intends to utilise the Department of the Treasury’s Advanced Manufacturing Investment Credit (CHIPS ITC), which provides a 25% credit for qualified capital expenditures.
