The US Commerce Department has initiated a $3 billion program to boost the domestic chip-packaging industry, a critical component in the semiconductor supply chain. The program, part of the 2022 Chips and Science Act, is the first major investment in research and development, aimed at revitalizing semiconductor production in the US amid increasing global competition, particularly with China.
The National Advanced Packaging Manufacturing Program, funded by a portion of the $11 billion allocated for research and development in the Chips Act, seeks to address the country's limited packaging capacity, which currently stands at just 3% of the world's total. This initiative aims to mitigate supply chain vulnerabilities and enhance national security, as the US endeavors to establish multiple high-volume advanced packaging facilities and emerge as a commercial-scale leader in sophisticated chip packaging by the end of the decade.
The program will focus on developing a range of packaging technologies and materials, with the first funding opportunity targeting materials and substrates set for early 2024. Additionally, the initiative will establish an Advanced Packaging Piloting Facility to cultivate scalable packaging technologies for US production and invest in workforce training.
The significance of advanced packaging in the semiconductor industry has recently gained prominence, with various industry stakeholders recognizing its transformative potential. For instance, Intel is integrating advanced packaging into its strategic roadmap, and China is also capitalizing on this critical area, leading to a global surge in advanced packaging innovations.
This shift towards prioritizing advanced packaging is propelled by the surging demand for high-performance chips, particularly in applications such as data centers, artificial intelligence accelerators, and consumer electronics. As the industry confronts physical limitations in chip scaling, advanced packaging technologies emerge as a pivotal solution, enabling seamless integration of diverse chip types and reshaping the semiconductor manufacturing landscape.
