Eyeing to power into AI, EVs, and more high-tech industries, Akash Systems lands $68 million CHIPS grant to boost its cooling tech facility, generating 400+ jobs.
On Wednesday, the US National Institute of Standards and Technology announced that Akash Systems, a satellite technology startup, has been awarded up to $18.2 million in CHIPS and Science Act funding by the Commerce Department of the United States.
In addition to the federal funding, Akash Systems is set to receive a total of $68 million in combined federal and state support. This includes $50 million in tax credits from both the federal government and the state of California.
The funding is part of a broader support of the company’s expansion into semiconductor manufacturing, specifically chip cooling technology.
Akash plans to use these funds to help build an approximate 3716 square-metre (40,000-square-foot) cleanroom within an existing West Oakland, California facility. This upgrade is expected to create over 400 new jobs in both manufacturing and construction. According to the company, the total investment in the project is projected to reach $121 million.
Akash will focus on advancing diamond cooling technology, which combines synthetic diamonds with materials such as gallium nitride. The technology improves heat dissipation in high-performance semiconductors, particularly in AI-focused data centres. Originally focused on space tech, Akash is also looking to expand into markets like EVs, autonomous vehicles, electric grids, solar energy, AI chips, and wireless circuits.
As part of its facility development, Akash Systems has committed to a project labour agreement prioritising hiring from underserved communities and unionised labour. The company is also collaborating with local educational institutions, including Berkeley City College, Laney College, and Northeastern University Oakland, to help develop a skilled workforce for the facility.
The startup plans to apply for the advanced manufacturing investment credit, covering up to 25% of its qualified capital expenditures.
This funding is part of the broader CHIPS for America initiative, which has already allocated over $1.2 billion for various projects in 2024. Since 2022, the CHIPS Act has awarded over $36 billion in proposed funding across 20 states across the country. The initiative aims to strengthen the U.S. semiconductor manufacturing industry and reduce reliance on foreign suppliers.
