CHIPS for America Announces New Proposed $285 Million Award for CHIPS Manufacturing USA Institute for Digital Twins

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Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) are entering negotiations for the Department to provide SRC $285 million to establish and operate a Manufacturing USA institute headquartered in Durham, North Carolina. With combined funding totaling $1 billion, this investment will support the launch of the first-of-its-kind CHIPS Manufacturing USA Institute. The new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) will focus on efforts to develop, validate, and use digital twins to improve domestic semiconductor design, manufacturing, advanced packaging, assembly, and test processes. SMART USA will join an existing network of seventeen institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure. SRC is an important part of North Carolina’s research ecosystem, including decades-long relationships with North Carolina’s universities.

“America’s technological leadership on the world stage depends on its ability to collaborate with the best and brightest around the globe,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the leadership of President Biden and Vice President Harris, we’re opening new avenues to better safeguard U.S. national security and further technological innovation with the establishment of the SMART USA Institute. With new Digital Twin capabilities, America is fostering unparalleled opportunities to collaborate with experts and researchers anywhere in the world to develop the next frontier of technological advancements in the semiconductor industry.” 

Digital twins are virtual models that replicate physical objects, like chips or complex machinery. Engineers and researchers can use these virtual models to design, develop, and test processes digitally before applying them in real life. Digital twin-based research can also leverage emerging technology like artificial intelligence to optimize chip design, improve production efficiency, and lower costs by streamlining operations and reducing the need for costly adjustments. Additionally, these technologies will expand workforce opportunities by providing real-time feedback, place-based learning, and exposure to systems previously inaccessible. Through digital twins, researchers and technicians can develop new technical skills, tools, mechanical systems, and chemicals, while protecting workplace safety.

“Today’s announcement is another step forward under President Biden’s leadership to bring semiconductor manufacturing back to the United States—and invest in the research and development needed to win the future,” said Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy Arati Prabhakar. “With the CHIPS and Science Act, we’re catalyzing private sector investments that are advancing a supply chain that feeds so many other industries. And we’re creating good-paying jobs that support families and change people’s lives.”

SMART USA will convene companies, startups, researchers and academia and provide access to physical assets and novel digital capabilities, to:

• Speed up the development and adoption of advanced semiconductor technologies. By streamlining this process and reducing time-to-market, SMART USA will help accelerate innovation in U.S. chips design and manufacturing.
• Shorten the time and cost of chip production. The institute will implement efficient design and validation methods using digital twins, significantly cutting expenses and improving productivity.
• Provide training opportunities for the next generation of semiconductor workers: this includes creating programs aimed at skill development and workforce readiness.

“Digital Twin technology can unleash a new frontier for innovation in America’s semiconductor R&D ecosystem,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “With the new SMART USA Institute, America is both expanding its semiconductor manufacturing and R&D capabilities and bolstering the domestic semiconductor R&D ecosystem that will be a key innovation engine for years to come.”

“We are honored by CHIPS for America's recognition of SMART USA Institute's pivotal role in driving semiconductor innovation. This designation as the CHIPS Manufacturing USA institute reaffirms our dedication to fostering collaboration and excellence across the semiconductor ecosystem. At its core, the SMART USA Manufacturing Institute is about bringing people together as a cohesive team. Through this collaboration, we harness the collective strengths and expertise of our partners. Teaming is the cornerstone of our strategy, and it is through this united effort that we will succeed in achieving our ambitious goals,” said Todd Younkin, Executive Director of SMART USA. 

SMART USA and its planned members span more than 30 states, with more than 150 expected partner entities representing industry, academia, and the full spectrum of supply chain design and manufacturing. Collaborators also include ten national laboratories, five Manufacturing USA institutes, five economic development agencies, and four Trade and Union groups. The CHIPS Manufacturing USA Institute will join an existing network of seventeen Institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure.

Within five years, SMART USA aims to:

• Convene stakeholders across the semiconductor design, manufacturing, advanced packaging, assembly, and test industry to address shared challenges relevant to digital twins, in a collaborative environment;
• Reduce U.S. chip development and manufacturing costs by more than 35% by improving capacity planning, production optimization, facility upgrades, and real-time process adjustments using digital twins;
• Reduce development cycle times by 30% for semiconductor manufacturing, advanced packaging, assembly, and test and accelerate the development and adoption of relevant innovative technologies, including breakthrough tools, materials, and manufacturing processes;
• Demonstrate a 25% reduction in greenhouse gas emissions associated with semiconductor manufacturing; and
• Train more than 100K workers and students on digital twin technology.

Today’s announcement builds on the Administration’s historic work to bring back manufacturing to America after decades of offshoring. Investments in R&D programs, such as SMART USA, will ensure America stays at the cutting-edge of manufacturing far into the future. President Biden’s landmark Investing in America agenda includes key tax incentives and funding opportunities, which have helped catalyze nearly $1 trillion in private sector investment commitments across 21st century industries.