Biden Administration Commits $1.6 Billion for Advancing Computer Chip Technology

On Tuesday July 9th, the Biden administration unveiled a plan to allocate a substantial sum of up to $1.6 billion for the advancement of new technology in computer chip packaging. This move is a crucial step in the United States' endeavor to maintain a competitive edge over China in the development of essential components for various applications, including artificial intelligence (AI).

Focus of Funding

The proposed funding, a part of the allocation under the 2022 CHIPS Act, aims to empower companies to drive innovation in key areas. This includes the development of faster data transfer methods between chips within a package, as well as effective management of the heat generated by these chips. Laurie Locascio, an under secretary in the Commerce Department and the director of the National Institute of Standards and Technology, emphasized the significance of these advancements.

Grant Application Process

During her announcement at an influential industry conference in San Francisco, Ms. Locascio marked the commencement of the application process for companies seeking grants to support their research and development initiatives. These grants are anticipated to reach a substantial amount of up to $150 million each, providing significant support for groundbreaking projects.

Ms. Locascio also emphasized the strategic focus of research and development efforts in the realm of advanced packaging. These efforts will particularly concentrate on meeting the rising demand for high-performance computing and low-power electronics, both of which are critical for establishing leadership in AI.