The Biden administration is making a significant investment in the development of new technology for packaging computer chips, with up to $1.6 billion in funding being directed towards this effort. This move is part of the U.S. government’s strategy to stay ahead of China in creating components necessary for applications like artificial intelligence.
The funding, which is part of the 2022 legislation known as the CHIPS Act, will support companies in innovating in areas such as improving data transfer between chips and managing heat generation. Laurie Locascio, an under secretary in the Commerce Department, announced the initiative at an industry conference in San Francisco, signaling the start of companies applying for grants to fund research and development projects.
The focus of the research and development efforts will be on high-demand applications like high-performance computing and low-power electronics, essential for leadership in artificial intelligence. The CHIPS Act, which received bipartisan approval, aims to invest $52 billion in domestic chip production, with a significant portion of the funding going towards chip factories.
Currently, the U.S. relies heavily on foreign companies for chip packaging, with most of the packaging taking place in countries like Taiwan, Malaysia, and South Korea. The lack of domestic packaging capabilities poses a challenge to reducing dependence on foreign companies, even if chips are manufactured in the U.S.
Companies like Nvidia and T.S.M.C. are pushing the boundaries of chip packaging by incorporating multiple chips in a single package to enhance computing performance. Intel, a leading chip maker, is investing in upgrading its factories to compete with T.S.M.C. in manufacturing services.
The new grants are part of the National Advanced Packaging Manufacturing Program, which is expected to receive about $3 billion in total funding. While some industry players are taking proactive steps to advance packaging research and development, the government’s support will be crucial in keeping U.S. companies at the forefront of chip technology.
