Department of Defense Invests Additional $160 Million in CHIPS Act Funds to Propel Microelectronics Leadership

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The U.S. Department of Defense has invested an additional $160 million of funds from the Biden-Harris Administration’s bipartisan CHIPS and Science Act to advance America’s microelectronics capabilities through the Microelectronics Commons, a collaborative national network of technology hubs. The October funding, following the award in September of $269 million for 33 new technical projects and the award of just under $240 million released a year prior to initially launch the eight hubs, marks a significant milestone for the CHIPS Act’s mission to strengthen the country’s global leadership in microelectronics and semiconductor manufacturing.

The bulk of the funding in this latest tranche – $148 million – will go directly to the Microelectronics Commons Hubs, focusing on building infrastructure, supporting operations, and accelerating workforce development across the eight established hubs:

  • The Northeast Microelectronics Coalition (NEMC) Hub, led by the Massachusetts Technology Collaborative in Massachusetts, has been awarded $18.7 million.
  • The Silicon Crossroads Microelectronics Commons (SCMC) Hub, led by the Applied Research Institute in Indiana, has been awarded $16.6 million.
  • The California Defense Ready Electronics and Microdevices Superhub (CA DREAMS) Hub, led by the University of Southern California in California, has been awarded $27 million.
  • The Commercial Leap Ahead for Wide Bandgap Semiconductors (CLAWS) Hub, led by the North Carolina State University in North Carolina, has been awarded $23.7 million.
  • The Southwest Advanced Prototyping (SWAP) Hub, led by the Arizona Board of Regents on behalf of Arizona State University in Arizona, has been awarded $18.7 million.
  • The Midwest Microelectronics Consortium (MEMC) Hub in Ohio, has been awarded $12.3 million.
  • The Northeast Regional Defense Technology (NORDTECH) Hub, led by the Research Foundation for the State University of New York in New York, has been awarded $10.6 million.
  • The California-Pacific-Northwest AI Hardware Hub (NWAI), led by the Board of Trustees of the Leland Stanford Junior University in California, has been awarded $15.3 million.

An additional $10 million will support a Cross-Hub Enablement Solution (CHES), enhancing shared access to critical Electronic Design Automation (EDA) tools and cloud computing resources. October’s funding also included the latest addition to the Commons prototype project list, a $2 million project aligned to the SCMC Hub that came through after final negotiations with project team members.

“America’s military systems are the most capable in the world, and that would not be possible without advanced semiconductor technology,” said Dr. Arati Prabhakar, assistant to the President for Science and Technology and director of the White House Office of Science and Technology Policy. “Thanks to President Biden and Vice President Harris’ leadership, we’re making the semiconductor innovation investments today that will bolster global security tomorrow.”

“Semiconductors are key to the must-win technologies of the future for next generation weapons systems, including artificial intelligence and 5G,” said Dr. Dev Shenoy, principal director of microelectronics for the Department of Defense. “These technologies will be essential to achieving the goal of a dynamic, inclusive, and innovative national economy identified as a critical American advantage.”

The Microelectronics Commons network also convened its 2024 Annual Meeting and National Semiconductor Technology Center (NSTC) Symposium from October 28-30 in Washington, D.C., gathering 1,000 in-person attendees and over 1,000 virtual participants. Deputy Secretary of Defense Kathleen H. Hicks, who delivered the keynote address, praised the network’s collaborative approach, noting, “Chips bring America together.”

Throughout the event, leaders of the Microelectronics Commons provided updates on their Hubs’ progress, discussing first-year achievements, prototype projects, and workforce development initiatives. Discussions underscored the importance of ongoing investments in lab-to-fab pathways – initiatives that streamline the transition from research laboratories to semiconductor fabrication facilities.

“The Microelectronics Commons aims to enable lab-to-fab prototyping, evolving microelectronics laboratory prototyping to fabrication prototyping in domestic facilities,” said Shenoy. “More specifically, the goal is a national network of regional innovation hubs distributed across the U.S. that will foster a pipeline of domestic talent and innovative ideas, reduce barriers to innovation, and mature emerging microelectronics technologies.”

The CHIPS and Science Act and the Microelectronics Commons program represent a monumental investment in the U.S. semiconductor industry. As the Commons network gains momentum, stakeholders are optimistic about America’s potential to lead in an era where advanced microelectronics and resilient supply chains are critical to national security.