January 20, 2025 /SemiMedia/ — The U.S. Department of Commerce has announced a $1.4 billion allocation to three projects and the National Advanced Packaging Manufacturing Program (NAPMP). The funding aims to establish a self-sufficient, large-scale domestic semiconductor advanced packaging industry to manufacture and package advanced node chips in the U.S.

Absolics, Applied Materials, and Arizona State University will receive a total of $300 million for substrate research projects. Additionally, $1.1 billion will go toward prototype design and the NAPMP advanced packaging pilot facility (PPF) to enhance advanced packaging capabilities.

"Strengthening advanced packaging capabilities is critical to ensuring the United States remains a global leader in cutting-edge semiconductor manufacturing," said U.S. Commerce Secretary Gina Raimondo. "These investments and flagship research facilities will reinforce our end-to-end semiconductor ecosystem, close the gap between innovation and commercialization, and secure U.S. leadership in semiconductor innovation and manufacturing."

Project Details:

  • Absolics (Covington, Georgia) will receive $100 million for glass substrate technology research, an increase from its initial subsidy of $75 million. This is part of the SMART (Substrate and Materials Advanced Research and Technology) initiative.
  • Applied Materials (Santa Clara, California) will also receive $100 million to develop silicon-based substrate technology for next-generation semiconductor advanced packaging and 3D heterogeneous integration.
  • Arizona State University will receive $100 million to develop next-generation semiconductor microelectronics packaging using fan-out wafer-level packaging (FOWLP) technology. The project will explore the commercialization of 300mm wafer-level and 600mm panel-level manufacturing, which is currently unavailable in the U.S.

Additionally, the Natcast Semiconductor Advanced Packaging Facility (Tempe, Arizona) will receive $1.1 billion to build a baseline pilot production line for advanced packaging technologies. This facility will enable researchers and industry leaders to test new materials and equipment, further strengthening the U.S. semiconductor sector.