Semiconductor Consortium Negotiating $285M in Funding to Establish Manufacturing Institute

The institute would develop, validate and use digital twins to improve semiconductor manufacturing.

Semiconductor
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The Biden-Harris Administration announced that the U.S. Department of Commerce and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) entered negotiations for the Department to provide SRC $285 million to establish and operate a Manufacturing USA institute headquartered in Durham, North Carolina.

With combined funding totaling $1 billion, this investment will support the launch of the first-of-its-kind CHIPS Manufacturing USA Institute. The new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) will focus on efforts to develop, validate and use digital twins to improve domestic semiconductor design, manufacturing, advanced packaging, assembly and test processes.

SMART USA will join an existing network of seventeen institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure. 

Digital twin-based research can also leverage emerging technology like artificial intelligence to optimize chip design, improve production efficiency and lower costs by streamlining operations and reducing the need for costly adjustments. These technologies will expand workforce opportunities by providing real-time feedback, place-based learning and exposure to systems previously inaccessible.

SMART USA will convene companies, startups, researchers and academia and provide access to physical assets and novel digital capabilities, to:

  • Speed up the development and adoption of advanced semiconductor technologies
  • Shorten the time and cost of chip production
  • Provide training opportunities for the next generation of semiconductor workers: this includes creating programs aimed at skill development and workforce readiness

SMART USA and its planned members span more than 30 states, with more than 150 expected partner entities representing industry, academia and the full spectrum of supply chain design and manufacturing. Collaborators also include 10 national laboratories, five Manufacturing USA institutes, five economic development agencies and four Trade and Union groups.

The CHIPS Manufacturing USA Institute will join an existing network of seventeen Institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure.

Within five years, SMART USA aims to:

  • Convene stakeholders across the semiconductor design, manufacturing, advanced packaging, assembly and test industry to address shared challenges relevant to digital twins, in a collaborative environment
  • Reduce U.S. chip development and manufacturing costs by more than 35% by improving capacity planning, production optimization, facility upgrades and real-time process adjustments using digital twins
  • Reduce development cycle times by 30% for semiconductor manufacturing, advanced packaging, assembly and test and accelerate the development and adoption of relevant innovative technologies, including breakthrough tools, materials and manufacturing processes
  • Demonstrate a 25% reduction in greenhouse gas emissions associated with semiconductor manufacturing
  • Train more than 100K workers and students on digital twin technology
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