U.S. Department of Commerce Announces $1.4 Billion in Final Awards to Support the Next Generation of U.S. Semiconductor Advanced Packaging

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The U.S. Department of Commerce has announced that CHIPS National Advanced Packaging Manufacturing Program (NAPMP) has finalized $1.4 billion in award funding to bolster U.S. leadership in advanced packaging and enable new technologies to be validated and transitioned at scale to U.S. manufacturing. These awards will help establish a self-sustaining, high-volume, domestic, advanced packaging industry where advanced node chips are both manufactured and packaged in the United States.  

These awards include:

• A total of $300 million under the CHIPS NAPMP’s first Notice of Funding Opportunity (NOFO) for advanced substrates and material research to Absolics Inc., Applied Materials Inc., and Arizona State University. This follows the previously announced intent to enter negotiations on November 21, 2024.
• $1.1 billion to Natcast to operate the advanced packaging capabilities of the CHIPS for America NSTC Prototyping and NAPMP Advanced Packaging Piloting Facility (PPF). This follows the previously announced CHIPS R&D Facilities Model on July 12, 2024, and planned site selection for the PPF on January 6, 2025.

“Bolstering our advanced packaging capabilities is key to America remaining a global leader in leading-edge semiconductor manufacturing,” said U.S. Secretary of Commerce Gina Raimondo. “These CHIPS for America investments and CHIPS research and development flagship facilities will strengthen our end-to-end semiconductor ecosystem and help close the gap between invention and commercialization to ensure the United States is a global leader in semiconductor innovation and manufacturing.”

Awardees

Absolics, Inc. in Covington, Georgia, $100 million in direct funding: This award will support Absolics’ Substrate and Materials Advanced Research and Technology (SMART) Packaging Program and help build a glass-core packaging ecosystem. Absolics’ glass substrates will be used as an important advanced packaging technology to increase the performance of leading-edge chips for artificial intelligence (AI), high-performance compute and data centers by reducing power consumption and system complexity.

Applied Materials, Inc. in Santa Clara, California, $100 million in direct funding: This project will develop and scale a disruptive silicon-core substrate technology for next-generation advanced packaging and 3D heterogeneous integration. Applied Materials’ silicon-core substrate technology has the potential to advance America’s leadership in advanced packaging and help catalyze an ecosystem to develop and build next-generation energy-efficient artificial intelligence (AI) and high-performance computing systems in the U.S.  

Arizona State University in Tempe, Arizona, $100 million in direct funding: The award will support the development of the next generation of microelectronics packaging through fan-out-wafer-level-processing (FOWLP). Centered at ASU Advanced Electronics and Photonics Core Facility, this project supports ASU’s research in exploring the commercial viability of 300 mm wafer-level and 600 mm panel-level manufacturing, a technology that does not exist as a commercial capability in the U.S. today.

Natcast’s Advanced Packaging Facility in Tempe, Arizona, $1.1 billion in direct funding: The award will enable Natcast to operate and manage the CHIPS NAPMP advanced packaging capabilities that will be co-located with NSTC prototyping capabilities at the recently announced CHIPS for America NSTC Prototyping and NAPMP Piloting Facility (PPF) in Tempe, Arizona. Key packaging capabilities funded by this award are expected to include a baseline advanced packaging piloting line to enable the development and commercialization of new advanced packaging processes. The CHIPS for America PPF will feature cutting-edge capabilities to bridge the gap between laboratory research and full-scale semiconductor production. This facility will enable researchers and industry leaders to develop and test new materials, devices, and advanced packaging solutions in a state-of-the-art R&D environment.