Thanks to Kelly’s Chips and Science Law, ASU to Receive $100 Million in Funding to Boost U.S. Leadership in Advanced Packaging for Microchips

The $100 million in federal funding for ASU will be paired with an additional anticipated $30 million investment from the private sector, totaling over $130 million

The award will support the efforts of the university's SHIELD USA project, an initiative to accelerate R&D and commercial deployment, strengthen domestic supply chains, expand workforce, and research capacity, and support U.S. leadership in advanced packaging for microchips

Today, the Department of Commerce announced that Arizona State University (ASU) in Tempe, Arizona, will be awarded $100 million from the CHIPS R&D National Advanced Packaging Manufacturing Program (NAPMP) to accelerate U.S. capacity for advanced packaging substrates and substrate materials, a key technology for manufacturing microchips. Such substrates are not currently produced in the United States but are foundational to establishing and expanding domestic advanced packaging manufacturing capability.

This funding will support SHIELD USA (Substrate-based Heterogeneous Integration Enabling Leadership Demonstration for the USA), an ASU-led initiative to drive innovation in the domestic microchip packaging ecosystem, expand capacity for domestic advanced packaging, and help regain U.S. leadership in microelectronics while strengthening national security.

Earlier this year, Arizona Senators Mark Kelly and Kyrsten Sinema, along with Representatives Greg Stanton, Raúl Grijalva, Juan Ciscomani, and Debbie Lesko sent a letter in support of the SHIELD USA proposal to Commerce Department Secretary Gina Raimondo.

"This award further establishes Arizona as the national leader in advanced packaging and leading-edge microchip manufacturing," said Kelly, a chief negotiator of the Chips and Science Act. "Advanced packaging is a key component of the microchip manufacturing process, yet most advanced packaging research and manufacturing occurs overseas. This investment builds upon other investments we're seeing in Arizona to bring advanced packaging back to the United States. I applaud ASU for their work in developing cutting-edge technologies and their commitment to make Arizona a major player in microelectronics."

"Semiconductors are the foundation for every must-win technology of the future, including artificial intelligence. The U.S. needs to be constantly innovating if we want to compete on the global stage, and there's no institution better positioned to lead this cutting-edge research and development than Arizona State," said Stanton.

"This is a critical step for U.S. semiconductor independence, and it is the area of expertise in which we are in direct competition with China to determine who will unlock the future of innovation in semiconductor chip manufacturing," said ASU President Michael Crow. "ASU is well prepared with a dynamic partner in Deca Technologies, and we are eager to lead the work that will enable SHIELD USA to play a pivotal role in ensuring the country's technological and economic future."

Background:

Arizona State University is leading the charge in developing the next generation of microelectronics packaging through fan-out-wafer-level processing (FOWLP). At the heart of this initiative is the ASU Advanced Electronics and Photonics Core Facility, where researchers are exploring the commercial viability of 300 mm wafer-level and 600 mm panel-level manufacturing, a technology that does not exist as a commercial capability in the U.S. today. ASU's team of over 10 partners, led by industry pioneer Deca Technologies, is centered in a regional stronghold for microelectronics manufacturing and is composed of large and small businesses, universities and technical colleges, and nonprofits.