Biden launches $1.6B initiative for chip packaging

Biden launches $1.6B initiative for chip packaging

Biden initiative for chip packaging a bid to bolster domestic semiconductor capabilities, the Biden administration has unveiled a groundbreaking $1.6 billion funding competition aimed at advancing research and development (R&D) in semiconductor chip packaging. This initiative marks a pivotal move under the 2022 Chips and Science Act, aimed at revitalizing the U.S. semiconductor industry.

Supporting Innovation Across Key Domains

Commerce Undersecretary for Standards and Technology Laurie E. Locascio emphasized that the funding will allocate across five strategic domains. These efforts aim not only to foster cutting-edge research but also to expedite prototype development critical for enhancing chip packaging technologies.

Commerce Undersecretary for Standards and Technology Laurie E. Locascio’s funding emphasizes vital domains for advancing chip packaging technologies, according to WSJ Print Subscription.

Critical Role of Chip Packaging

Chip packaging integrates semiconductor chips into devices, essential for the industry’s supply chain. The US holds only 3% of global chip packaging capacity, contrasting with Asia’s dominance. Companies like Intel, SK Hynix, Amkor Technology, and Samsung are expanding US-based packaging facilities. This underscores the growing importance of the sector.

Significant Funding Milestone

The announcement marks the largest funding opportunity yet from the $11 billion Chips Act R&D fund. The legislation allocates $39 billion for grants, $75 billion for loans and loan guarantees, and introduces a 25% tax credit. These measures collectively aim to incentivize the resurgence of semiconductor manufacturing in America, reversing decades of production migration to Asia.

Biden President's Resolve

Biden’s Resolve Reaffirms Commitment Amid Calls for Withdrawal

Biden’s resolve in a letter to congressional Democrats, reaffirmed his resolve to continue his presidential campaign…

Key Focus Areas

The newly launched program focuses on five key categories: equipment and tools, power delivery and thermal management, connector technology, electronic design automation, and chiplets—modular electronic components designed for specific functions. Multiple awards up to $150 million will support each category, aiming to drive breakthroughs in semiconductor packaging technology.

The Biden administration aims to strengthen U.S. semiconductor capabilities, prioritizing national security and economic resilience while seeking global leadership.

Gain access to a remarkable 2-Year Bundle featuring Financial Times and Barron’s Digital Subscriptions for just $199. Enjoy global access via iPhone, Android, tablet, PC, or Mac. Invest now for immediate access to a wealth of information.

Sales Support