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US defense department makes $49m semiconductor investment

The US government has announced two contracts worth USD 49 million to Micross Components and the government of Osceola County, Florida.

These awards, which focus on low-volume/high-mix production of secure 2.5 and/or 3D advanced packaging solutions, are part of DOD's Re-shore Ecosystem for Secure Heterogeneous Advanced Packaged Electronics (RESHAPE) scheme.

RESHAPE, which was unveiled last year, is an initiative to revitalize the  advanced packaging manufacturing capability of the US – particularly multi-supplier "back-end-of-line" processes for 300mm wafer diameter capabilities.

These new awards are part of a longer term program of investment that saw Micross Components receive USD 134.3 million last year. In 2023, the Innovation Capability and Modernization (ICAM) office, which manages the program, made awards totalling nearly USD 700 million.

"Revitalizing a semiconductor advanced packaging manufacturing ecosystem in the US is critical to enabling the Department's weapon system development and manufacturing partners across industry to support our warfighters," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy. "It will also enable lower volume manufacturing commercial markets across the U.S. to advance their products and to assist in sustaining these critical manufacturing capabilities."


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