The Biden-Harris Administration has announced up to $300 million in funding for advanced semiconductor packaging research projects across three states, marking a significant step in strengthening domestic semiconductor capabilities and reducing dependence on foreign manufacturing.
Core investment details: The U.S. Department of Commerce is initiating negotiations to distribute funding among three key institutions for advanced substrate development and research.
- Absolics Inc. in Georgia, Applied Materials Inc. in California, and Arizona State University are each expected to receive up to $100 million
- The federal funding will be matched with private sector investments, bringing the total investment to over $470 million
- Advanced substrates, which are not currently produced in the United States, serve as platforms for assembling multiple semiconductor chips and enabling high-performance computing
Technical significance: Advanced packaging technology represents a crucial advancement in semiconductor manufacturing that addresses current limitations in computing power and efficiency.
- The technology enables high-bandwidth communication between chips while managing power delivery and heat dissipation
- These improvements are essential for artificial intelligence, next-generation wireless communication, and power electronics
- Current packaging technology cannot meet the rising power consumption and computational performance demands of AI data centers
Project specifics: Each recipient brings unique capabilities and focus areas to advance domestic semiconductor packaging capabilities.
- Absolics Inc. will develop glass core substrate panel manufacturing through its SMART Packaging Program, collaborating with over 30 partners
- Applied Materials is focusing on silicon-core substrate technology for 3D heterogeneous integration with 10 collaborators
- Arizona State University will lead fan-out-wafer-level-processing research, working with industry partner Deca Technologies and others
Workforce development: The initiative includes comprehensive plans for building a skilled semiconductor workforce.
- Recipients will establish training programs, internships, and certification opportunities
- Partnerships with technical colleges, the HBCU CHIPS Network, and Veterans programs are planned
- Programs include microcredentials and quick start options for working professionals
Program context: This funding is part of the broader CHIPS for America initiative, which aims to revitalize U.S. semiconductor manufacturing.
- The National Advanced Packaging Manufacturing Program (NAPMP) will invest approximately $3 billion in total
- The program aims to establish a self-sustaining domestic advanced packaging industry within a decade
- These investments support both research and development and manufacturing capabilities
Looking ahead: While this investment represents a significant step toward domestic semiconductor independence, success will depend on effective execution and continued support for the ecosystem’s development, particularly as global competition in advanced chip packaging intensifies and demand for AI-capable hardware grows.
Recent Stories
DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment
The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...
Oct 17, 2025Tying it all together: Credo’s purple cables power the $4B AI data center boom
Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...
Oct 17, 2025Vatican launches Latin American AI network for human development
The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...