Today, the U.S. Department of Commerce announced that CHIPS for America awarded the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) $285 million to establish and operate a CHIPS Manufacturing USA institute headquartered in Durham, North Carolina. This follows the previously announced intent to enter negotiations on November 19, 2024. With a combined total investment of over $1 billion, the new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) will focus on efforts to more rapidly develop, validate, and use digital twins to improve domestic semiconductor design, manufacturing, advanced packaging, assembly, and test processes.

“Digital twin technology opens the door for unparalleled opportunities for manufacturers to collaborate with researchers to develop and produce the next frontier of technological advancements in the semiconductor industry,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to this CHIPS investment, SMART USA will bolster collaboration within the semiconductor ecosystem while expanding training opportunities for the industry’s growing workforce.”

Digital twins are virtual models that replicate physical objects, like chips or machinery. Engineers and researchers use these virtual models to design, develop, and test processes, or entire supply chains digitally before deploying them in real life. By developing new technologies virtually before physically building them, engineers and researchers can iterate on design changes faster and test them in a simulated environment. Digital twin-based research can also leverage emerging technology like artificial intelligence to optimize chip design, improve production efficiency, and lower costs by streamlining operations and reducing the need for costly adjustments.

“With investments like this one through the CHIPS and Science Act, we’re making good on President Biden’s promise to bring semiconductor manufacturing back to the United States—and pursue the research and development needed to win the future,” said Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy Arati Prabhakar.

SMART USA will convene stakeholders across the semiconductor design, manufacturing, advanced packaging, assembly, and test industry and within five years, aims to:

• Address shared challenges relevant to digital twins in a collaborative environment;
• Reduce U.S. chip development and manufacturing costs by more than 40% by improving capacity planning, production optimization, facility upgrades, and real-time process adjustments using digital twins;
• Reduce development cycle times by 35% for semiconductor manufacturing, advanced packaging, assembly, and test and accelerate the development and adoption of relevant innovative technologies, including breakthrough tools, materials, and manufacturing processes;
• Reduce greenhouse gas emissions associated with semiconductor manufacturing by 30%; and
• Train and educate more than 110,000 workers and students on digital twin technology.

SMART USA and its planned members span more than 30 states, with more than 150 expected partner entities representing industry, academia, and the full spectrum of supply chain design and manufacturing. Collaborators also include ten national laboratories, five Manufacturing USA institutes, five economic development agencies, and four trade and union groups. The CHIPS Manufacturing USA institute will join an existing network of seventeen institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure.

“We are thrilled to have finalized the SMART USA Institute award with the U.S. Department of Commerce. The awarding of the CHIPS Manufacturing Institute is a reminder of the power of collaboration, the importance of ambitious research and development, and the enduring impact from both education and disciplined imagination. The sky’s the limit when we work together,” remarked Todd Younkin, Executive Director of SMART USA.

For more information about this award, please visit the CHIPS for America website.

About CHIPS for America

CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit https://www.chips.gov to learn more.

About Manufacturing USA

Manufacturing USA was created to help secure U.S. global leadership in advanced manufacturing through large-scale public-private collaboration on technology, supply chain, and advanced manufacturing workforce development. The network includes the U.S. Departments of Commerce, Energy, and Defense, their sponsored manufacturing innovation institutes–currently seventeen–and six additional federal agency partners. This creates a whole-of-government, national effort to drive innovation in manufacturing. In 2023, the network worked with over 2,900 member organizations, including more than 1,315 primarily small manufacturers. The network also collaborated on over 920 applied R&D projects, engaged more than 150,000 individuals in advanced manufacturing workforce development programs, and secured $539 million in investments from state, federal, and industry funds. To learn more, visit https://www.manufacturingusa.com/.

About Semiconductor Research Corporation

Semiconductor Research Corporation (SRC) is a world-class, non-profit consortium that works with industry, government, and academia partners to define, fund and manage university research on behalf of its member companies. Through its highly regarded research programs, SRC plays an indispensable part in both research and development strategies of the most influential industry leaders. Members of SRC gain access to research results, fundamental IP, and highly experienced students to compete in the global marketplace and build the workforce of tomorrow. Visit https://www.src.org/ to learn more.