US to boosts chip packaging with $300M in funding
US government announces up to USD 300 million in funding to boost advanced semiconductor packaging.
The Biden administration has announced that the US Department of Commerce (DOC) is entering negotiations to invest up to USD 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 in Georgia, Applied Materials in California, and Arizona State University in Arizona.
These projects – which are expected to receive USD 100 million each – will focus on advanced substrates, essential for integrating semiconductor chips and enabling high-performance computing for AI, next-gen wireless, and efficient electronics. The initiative addresses a critical gap, as these substrates are not currently made in the US.
The federal funds will be matched by private investments, bringing total project funding to over USD 470 million. The effort is part of the CHIPS for America program, which aims to strengthen the domestic semiconductor supply chain and secure US leadership in emerging technologies.
- Absolics in Georgia is developing innovative glass-core substrates and fostering workforce development through partnerships with universities and technical colleges.
- Applied Materials in California is creating silicon-core substrates to support advanced AI and high-performance computing systems.
- Arizona State University in Tempe, Arizona will explore new wafer-level packaging technologies and establish a training pipeline for the semiconductor industry.
