Applied Materials, Absolics, ASU Win $100M Each For Packaging Innovation

To advance semiconductor packaging, boosting AI and tech innovation, the U.S. government has awarded up to $100 million each to Applied Materials, Absolics, and Arizona State University.

American companies Applied Materials, Absolics, and Arizona State University have each been awarded up to $100 million recently by the U.S. government to advance semiconductor packaging capabilities.  The funding is a part of the CHIPS and Science Act, introduced in 2022 by the U.S. Department of Commerce.

 The funding will support the research and development (R&D) of advanced substrates essential for assembling chips and enhancing high-performance computing. These advancements will be crucial for artificial intelligence (AI) applications, wireless communication, and power electronics.

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Absolics plans to utilise its portion of the funding to expand its manufacturing capabilities in glass-core substrate panel production at its $600 million facility in Covington, Georgia. The company will collaborate with over 30 partners to create a glass-core packaging ecosystem known for improved thermal and mechanical stability.

Applied Materials will use its funds to partner with ten collaborators in developing disruptive silicon-core substrate technologies at its R&D facility in Santa Clara, California, focusing on energy-efficient AI and high-performance computing.

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On the other hand, Arizona State University will concentrate on microelectronics packaging and wafer-level processing, focusing on the commercial viability of 300-mm wafer-level and 600-mm panel-level manufacturing.

The Commerce Department is swiftly finalising fund sanctions as President Biden’s term nears its end. In recent weeks, a flurry of approvals has been announced.

The CHIPS and Science Act is a $3 billion initiative by the Biden administration to boost domestic semiconductor packaging, aiming to strengthen the U.S. position in the global chip industry and support the growing demand for advanced AI chips.

The private sector is expected to invest an additional $170 million, bringing the total funding to at least $470 million.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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