CHIPS Act to fund $285 million for semiconductor digital twins

The Biden administration has proposed adding another $285 million to the CHIPS and Science Act for funding semiconductor development in the U.S. with the creation of a chip manufacturing institute and support for digital twins.

The CHIPS for America Program is proposing a first-of-its-kind institute focused on the development, validation, and use of digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes.

The CHIPS Manufacturing USA institute aims to establish regional networks to share resources with companies developing and manufacturing both physical semiconductors and digital twins.

Digital twins are virtual representations of physical chips that mimic how the real version will function. It is meant to be a faster way to develop, test, and revise chips without having to make physical versions of them. It’s much easier to simulate a chip than spin out silicon and helps researchers test out new processors before putting them into production.

“Digital twin technology can help to spark innovation in research, development, and manufacturing of semiconductors across the country — but only if we invest in America’s understanding and ability of this new technology,” Commerce Secretary Gina Raimondo said in a statement. “This new Manufacturing USA institute will not only help to make America a leader in developing this new technology for the semiconductor industry, it will also help train the next generation of American workers and researchers to use digital twins for future advances in R&D and production of chips.”

Congress passed the CHIPS Act in 2022, and President Biden signed it into law in an effort to boost semiconductor manufacturing in the United States, which has a very meager share of semiconductor manufacturing. Much of semiconductor manufacturing is in Taiwan or South Korea.

The Commerce Department has provided almost $33 billion in preliminary grants to chipmakers, in many cases to giant companies like Intel and Micron. Intel announced plans to build massive fabrication plants in Ohio, but they have since been delayed for a year due to economic conditions.

Biden administration officials have scheduled briefings on May 16 where interested parties can speak with the government officials about the funding opportunities. The government will fund the operational activities of the institute, research around digital twins, physical and digital facilities, and workforce training.

The CHIPS Manufacturing USA institute is expected to use integrated physical and digital assets to tackle important semiconductor-industry manufacturing challenges. The institute hopes to foster a collaborative environment to significantly expand innovation, bring benefits to both large and small to mid-sized manufacturers.