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We continue to pursue our tracking efforts based on the strategic insights garnered from the OODA Stratigame – Scenario Planning for Global Computer Chip Supply Chain Disruption, including the fact that public/private partnership and strategic governmental subsidies figured prominently in competent foresight strategy as it relates the future of the global computer chip supply chain, national security, and American competitiveness.
Folllowing are the latest implementation developments based on the passage of the the CHIPS and Science Act in August of 2022.
Featured Image Source: NIST
On November 9th, 2023, “the Department of Commerce announced it [had] reached an initial agreement with a new nonprofit organization called SemiUS, the expected operator for the National Semiconductor Technology Center (NSTC). This follows the Department’s recent announcement that an independent committee selected the inaugural Board of Trustees of this new nonprofit organization.
“The NSTC will provide domestic access to advanced prototyping capabilities for the research and development community. It will support U.S. technical leadership and streamline innovation for the production of American technology on shore, while also growing domestic semiconductor manufacturing and supporting well-paying jobs,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio.
Today’s agreement lays the foundation for initial operations and provides a path to the long-term execution of the ambitious vision that CHIPS for America laid out for the NSTC.
SemiUS also released a press release with more operational details about the NSTC:
The Board of Trustees is excited to announce the incorporation of a new nonprofit entity, named SemiUS, to operate the future research and development consortium known as the National Semiconductor Technology Center (NSTC). The NSTC is a key part of CHIPS for America’s research and development program established at the Department of Commerce through the CHIPS and Science Act to secure and extend U.S. technological leadership into the 21st century. The NSTC will be a public-private consortium authorized and funded through the bipartisan CHIPS and Science Act to serve as the focal point for research and engineering throughout the semiconductor ecosystem, advancing and enabling disruptive innovation to provide U.S. leadership in the industries of the future. SemiUS will work closely in partnership with the U.S. Department of Commerce and other agencies to develop and implement a wide variety of programs to fulfill the mission of the NSTC consortium. More information on the Department of Commerce’s vision and strategy for the NSTC can be found here: CHIPS for America: A Vision and Strategy for the National Semiconductor Technology Center (nist.gov) ⤤.
Early planned activities at SemiUS will include hiring a Chief Executive Officer and an executive team, establishing a membership structure for the consortium, and developing a timeline for the sequencing of program activities, which are expected to commence in 2024.
On September 29, 2023, “CHIPS for America released its second funding opportunity to strengthen the resilience of the semiconductor supply chain, advance U.S. technology leadership, and support vibrant domestic semiconductor clusters. This funding opportunity seeks applications for projects for the construction, expansion, or modernization of commercial facilities for semiconductor materials and manufacturing equipment with capital investments less than $300 million.
This funding opportunity builds upon for the Department’s announcement in June 2023 that expanded funding to larger supply chain projects as part of the Biden-Harris Administration’s strategic vision to strengthen the semiconductor supply chain through CHIPS for America investments. supply chain applicants play a vital role in producing the inputs necessary for producing semiconductors in the United States, support our domestic manufacturing ecosystem, and create jobs and opportunities in communities across the country. Through this funding opportunity, the Department is particularly interested in applications that advance clusters by closing critical gaps in the U.S. supplier landscape. If a project does not support a cluster, the application must make a compelling case for advancing one of the Department’s other two objectives.”
Read the full Small-Scale Notice of Funding Opportunity (PDF) for more information.
Additional resources for the small-scale supplier funding opportunity include:
Also, learn more about additional CHIPS for America funding opportunities.
On Monday, November 20th, “the Biden-Harris administration announced its vision to boost U.S. capabilities for advanced packaging, a key technology for manufacturing state-of-the-art semiconductors. In remarks at Morgan State University, Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio laid out how the U.S. will benefit from the Department of Commerce CHIPS for America program’s manufacturing incentives and research and development efforts. In particular, approximately $3 billion in funding for the National Advanced Packaging Manufacturing Program will be used to drive U.S. leadership in advanced packaging. An initial funding opportunity for this program is expected to be announced in early 2024. Supporting innovation and keeping the U.S. at the forefront of new research is a critical part of the president’s Investing in America agenda.
To outline the vision, CHIPS for America published “The Vision for the National Advanced Packaging Manufacturing Program” (NAPMP), which details the vision, mission and objectives for the advanced packaging program created by the bipartisan CHIPS and Science Act. The NAPMP is one of four CHIPS for America R&D programs that together are establishing the innovation ecosystem needed to ensure that American semiconductor fabrication facilities, including those funded by the CHIPS Act, produce the world’s most sophisticated and advanced technologies.
Advanced packaging is a cutting-edge design and manufacturing method that places multiple chips with a variety of functions in a densely interconnected two- or three-dimensional “package.” This design paradigm can help the sector achieve the ever denser, smaller dimensions that the most advanced semiconductors require. Advanced packaging requires an interdisciplinary approach that brings together chip designers, materials scientists, process and mechanical engineers, measurement scientists, and many more. It also requires access to resources such as advanced packaging facilities. Currently, the United States is limited in both conventional and advanced packaging capacity.
The approximately $3 billion program…will be dedicated to activities that include an advanced packaging piloting facility for validating and transitioning new technologies to U.S. manufacturers; workforce training programs to ensure that new processes and tools are capably staffed; and funding for projects that focus on:
For previous OODA Loop News Briefs and Original Analysis on the CHIPS Act and:
Computer Chip Supply Chain Vulnerabilities: Chip shortages have already disrupted various industries. The geopolitical aspect of the chip supply chain necessitates comprehensive strategic planning and risk mitigation. See: Chip Stratigame
The New Tech Trinity: Artificial Intelligence, BioTech, Quantum Tech: Will make monumental shifts in the world. This new Tech Trinity will redefine our economy, both threaten and fortify our national security, and revolutionize our intelligence community. None of us are ready for this. This convergence requires a deepened commitment to foresight and preparation and planning on a level that is not occurring anywhere. The New Tech Trinity.
Embracing Corporate Intelligence and Scenario Planning in an Uncertain Age: Apart from traditional competitive challenges, businesses also confront external threats, many of which are unpredictable. This environment amplifies the significance of Scenario Planning. It enables leaders to envision varied futures, thereby identifying potential risks and opportunities. All organizations, regardless of their size, should allocate time to refine their understanding of the current risk landscape and adapt their strategies. See: Scenario Planning
Track Technology Driven Disruption: Businesses should examine technological drivers and future customer demands. A multi-disciplinary knowledge of tech domains is essential for effective foresight. See: Disruptive and Exponential Technologies.
The Inevitable Acceleration of Reshoring and its Challenges: The momentum towards reshoring, nearshoring, and friendshoring signals a global shift towards regional self-reliance. Each region will emphasize local manufacturing, food production, energy generation, defense, and automation. Reshoring is a complex process, with numerous examples of failures stemming from underestimating intricacies. Comprehensive analyses encompassing various facets, from engineering to finance, are essential for successful reshoring endeavors. See: Opportunities for Advantage
About the Author
Daniel Pereira is research director at OODA. He is a foresight strategist, creative technologist, and an information communication technology (ICT) and digital media researcher with 20+ years of experience directing public/private partnerships and strategic innovation initiatives.
Informing your decisions with actionable intelligence
Informing your decisions with actionable intelligence