US to Invest $5b in Public-Private Semiconductor Consortium

Author photo: Patrick Arnold
ByPatrick Arnold
Industry Trends

The United States has announced it expects to invest over $5 billion in semiconductor-related research, development, and workforce needs, including in the National Semiconductor Technology Center (NSTC), to advance American leadership in semiconductor research and development. As part of the implementation of the CHIPS and Science Act, these investments will Semiconductor Consortiumreduce the time and cost of commercializing new chip technologies, reduce US reliance on foreign semiconductors, and help develop the skilled workforce needed for this initiative. 

The United States was a pioneer in semiconductor development, but today the country produces less than 10 percent of global supply, with the most advanced chips being produced elsewhere. The CHIPS and Science Act aims to change that with a historic investment in U.S. semiconductor manufacturing, research and development (R&D), and workforce. The CHIPS R&D program includes $11 billion in total funding to advance four programs: the NSTC; the National Advanced Packaging Manufacturing Program (NAPMP), the CHIPS Metrology Program, and the CHIPS Manufacturing USA Institute. The NSTC, the centerpiece of the CHIPS R&D program, will bring together and support government, industry, labor, customers, suppliers, educational institutions, entrepreneurs, and investors to accelerate the pace of semiconductor innovation.

Building the National Semiconductor Technology Center

The US plans to invest at least $5 billion in the NSTC, which has been formally established as a Public-Private Semiconductor Consortium. The NSTC will ensure the U.S. leads the way in the next generation of semiconductor technologies by supporting the design, prototyping, and piloting of the latest semiconductor technologies, leveraging shared facilities and expertise to ensure innovators have access to critical capabilities, and building and sustaining a skilled semiconductor workforce.

Investing in the Semiconductor Workforce

The program will invest hundreds of millions of dollars in the NSTC’s workforce efforts, including the creation of a Workforce Center of Excellence with a presence in multiple regions of the country. This work will help create streamlined training pathways to connect workers to the jobs necessary for this technology to flourish. The NSTC will leverage workforce investments made by industry, academia, and other education and workforce partners and its own funding to convene stakeholders, facilitate participation in technical colleges and workforce development programs, and guide future investment.

Investing in Other Key R&D Needs

Additionally, the program will create a first-of-its-kind semiconductor manufacturing digital twin institute, which will allow innovators to replicate and experiment with physical manufacturing processes at low cost, helping to significantly reduce U.S. chip development and manufacturing costs, improve development cycle time, and accelerate the adoption of innovation semiconductor manufacturing technologies.

It will also invest in initiatives to research advanced packaging of substrates, a key technology for semiconductors, and various smaller programs that address common needs across the microelectronic industry.







Engage with ARC Advisory Group

Representative End User Clients
Representative Automation Clients
Representative Software Clients