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The US is betting huge on the way forward for semiconductor know-how, launching a $1.6 billion competitors to revolutionise chip packaging and problem Asia’s longstanding dominance within the area. On July 9, 2024, the US Division of Commerce unveiled its formidable plan to turbocharge home superior packaging capabilities, a crucial but typically ignored facet of semiconductor manufacturing.
This transfer, a part of the Biden-Harris Administration’s CHIPS for America program, comes because the US seeks to revitalise its semiconductor trade and cut back dependence on international suppliers. Superior packaging, an important step in semiconductor manufacturing, has lengthy been dominated by Asian nations like Taiwan and South Korea. By investing closely on this space, the US goals to reshape the worldwide semiconductor panorama and place itself on the forefront of next-generation chip know-how, marking a major shift within the trade’s stability of energy.
US Secretary of Commerce Gina Raimondo emphasised the significance of this transfer, stating, “President Biden was clear that we have to construct a vibrant home semiconductor ecosystem right here within the US, and superior packaging is a big a part of that. Due to the Biden-Harris Administration’s dedication to investing in America, the US could have a number of superior packaging choices throughout the nation and push the envelope in new packaging applied sciences.”
The competitors will give attention to 5 key R&D areas: tools and course of integration, energy supply and thermal administration, connector know-how, chiplets ecosystem, and co-design/digital design automation. The Division of Commerce anticipates making a number of awards of roughly $150 million every in federal funding per analysis space, leveraging further investments from trade and academia.
This strategic funding comes at an important time, as rising AI purposes are pushing the boundaries of present applied sciences. Superior packaging permits for enhancements in system efficiency, lowered bodily footprint, decrease energy consumption, and decreased prices – all crucial elements in sustaining technological management.
The Biden-Harris Administration’s push to revitalise American semiconductor manufacturing comes as the worldwide chip scarcity has highlighted the dangers of overreliance on international suppliers. Asia, significantly Taiwan, at the moment dominates the superior packaging market. In accordance with a 2021 report by the Semiconductor Trade Affiliation, the US accounts for under 3% of worldwide packaging, testing, and meeting capability, whereas Taiwan holds a 54% share, adopted by China at 16%.
Underneath Secretary of Commerce for Requirements and Know-how and Nationwide Institute of Requirements and Know-how (NIST) Director Laurie E. Locascio outlined an formidable imaginative and prescient for this system: “Inside a decade, by means of R&D funded by CHIPS for America, we’ll create a home packaging trade the place superior node chips manufactured within the US and overseas might be packaged inside the States and the place revolutionary designs and architectures are enabled by means of modern packaging capabilities.”
The announcement builds on earlier efforts by the CHIPS for America program. In February 2024, this system launched its first funding alternative for the Nationwide Superior Packaging Manufacturing Program (NAPMP), specializing in superior packaging substrates and substrate supplies. That initiative garnered important curiosity, with over 100 idea papers submitted from 28 states. On Could 22, 2024, eight groups had been chosen to submit full purposes for funding of as much as $100 million every over 5 years.
In accordance with Laurie, the objective is to create a number of high-volume packaging amenities by the last decade’s finish and cut back reliance on Asian provide strains that pose a safety threat that the US “simply can’t settle for.” Briefly, the federal government is prioritising making certain America’s management in all parts of semiconductor manufacturing, “of which superior packaging is without doubt one of the most enjoyable and important areas,” White Home spokeswoman Robyn Patterson mentioned.
The most recent competitors is predicted to draw important curiosity from the US semiconductor ecosystem and shift that stability. It guarantees substantial federal funding and the chance to form the way forward for American chip manufacturing. As the worldwide demand for superior semiconductors continues to develop, pushed by AI, 5G, and different rising applied sciences, the stakes for technological management have by no means been greater.
Because the US embarks on this formidable endeavour, the world will see if this $1.6 billion guess can problem Asia’s stronghold on superior chip packaging and restore America’s place on the forefront of semiconductor innovation.
(Photograph by Braden Collum)
See additionally: Global semiconductor shortage: How the US plans to close the talent gap
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