...
By Hugh Cameron
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
The Biden administration has unveiled a new semiconductor research and development facility, marking the latest move in its ongoing chip war with China.
On Monday, the Department of Commerce and Natcast, which operates the National Semiconductor Technology Center (NSTC), announced that Arizona State University (ASU) has been selected as the location for a state-of-the-art semiconductor research facility.
The new facility, the third of three CHIPS for America R&D facilities, will be based at the university's Research Park in Tempe and will "feature cutting-edge capabilities to bridge the gap between laboratory research and full-scale semiconductor production," according to the announcement.
Read More on News
Expected to become operational in 2028, the Commerce Department said that the Arizona facility will "play a key role in driving U.S. leadership in semiconductor innovation, economic growth and national security."
...
Why It Matters
The facility will be one of the few in the U.S. to focus on advanced packaging, a set of techniques that integrate multiple semiconductor chips into single packages, enhancing performance and reducing manufacturing costs.
Daniel Gonzales, a senior scientist at the RAND Corporation with expertise in the global semiconductor supply chain and trade competition between the United States and China, highlighted advanced packaging as a critical area where the U.S. lags behind other countries.
According to Gonzales, most advanced packaging capabilities are in Taiwan or South Korea, while China continues to make "major investments" in this sphere.
"Hopefully this new R&D facility will help get the U.S. back close to the leading edge in advanced packaging," he said.
What To Know
The new facility represents the United States' latest effort to strengthen its dominance in the manufacturing of semiconductors, the backbone of modern technology driving everything from smartphones to military systems.
The most serious of these efforts, through which the latest developments have been financed, was the 2022 CHIPS and Science Act, which freed up nearly $53 billion in funding to advance America's domestic semiconductor manufacturing capabilities.
According to the Commerce Department, the new Arizona facility, along with the two existing facilities in New York and California, will "fill a critical gap in the lab-to-fab innovation cycle," ensuring that American-made chips are out of factory doors as soon as possible.
What People Are Saying
U.S. Secretary of Commerce Gina Raimondo: "A strong research and development ecosystem is essential to ensuring the United States remains at the forefront of semiconductor innovation. Arizona has long been a hub for technological progress, and this new facility will strengthen our domestic supply chain, drive advanced manufacturing breakthroughs, and secure America's leadership in this critical industry. Thanks to the bipartisan CHIPS and Science Act, combined with the other two CHIPS for America R&D flagship facilities, we will help bring American innovations to the global market, further securing our national and economic security."
White House Deputy Chief of Staff Natalie Quillian: "Thanks to the bipartisan CHIPS and Science Act, we are investing at historic levels in the technologies of both today and tomorrow. Today's announcement with ASU ensures the United States will continue to be a leader in research and development and win the future by investing in skilled workers, moonshot technologies, and the advancements needed to stay ahead in critical industries, such as AI."
John Neuffer, president and CEO of the Semiconductor Industry Association: "Today's announcement is a welcome step forward for U.S. leadership in semiconductor innovation, marking significant progress in the implementation of the critical R&D programs enacted in the bipartisan CHIPS and Science Act. The new Arizona facility will benefit from—and build upon—the state's already-strong semiconductor fabrication and advanced packaging ecosystem.
"For America to remain the world's technology leader, it must continue to lead in semiconductor innovation. Driving forward U.S. research in chip prototyping and advanced packaging is critical to keeping America on top in chip technology. We look forward to continuing to work with leaders in Washington to ensure the CHIPS and Science Act's R&D initiatives and manufacturing incentives remain on track to deliver big benefits for America's economic strength, national security, and global competitiveness."
Geoff Burgan, CHIPS for America Communications Director, in a statement shared with Newsweek: "The bipartisan CHIPS for America program has awarded more than $33 billion to revitalize American semiconductor manufacturing, protect our economic and national security, protect taxpayer funds and jump-start a manufacturing boom not seen in decades.
"Prior to CHIPS, we produced 0% of the world's leading-edge logic chips, and now we are on track to produce at least 20% of those chips by 2030, helping advance U.S. technology leadership for years to come."
What Happens Next?
Despite the significant investments made in domestic semiconductor manufacturing, Gonzales said that one area in which the Biden administration has struggled has been "on the regulatory side" when constructing the foundries, or fabrication plants, where chips are made.
"I think that the time to build has been twice as long for CHIPS Act foundries in the U.S. as the new subsidized foundries in Japan where they've cleared away all of the regulatory hurdles," Gonzales said.
However, he added that the incoming Trump administration making good on its promise to cut regulations would be "very helpful in getting the CHIPS Act foundries over the finish line and up and running in the United States."
Do you have a story we should be covering? Do you have any questions about this article? Contact LiveNews@newsweek.com.
Update 01/07/24 10:50 p.m. ET: This article was updated to include comment from CHIPS for America.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines