How to Use Funding For Semiconductor Packaging

CHIPS For America is a program to help the United States stay competitive in important technology areas such as semiconductor manufacturing. The Department of Commerce recently issued a Notice of Intent (NOI) announcing a competition for new R&D (research and development) to expedite semiconductor advanced packaging and related technologies.

What Is The CHIPS Act?

The Chips and Science Act is a federal statute signed into law in August 2022. The main goals of providing funding for semiconductor packaging are:

• Revitalize domestic manufacturing
• Help the U.S. compete with China and other nations in the semiconductor arena
• Strengthen American supply chains
• Create jobs
• Lower the cost of semiconductor technology

R & D Areas That Will Be Funded

The CHIPS For America program’s intent is to focus on five types of research and development as outlined below. 

1. Equipment, tools, processes, and process integration. Equipment needed may include dicing machines, probing machines, grinders, and CMP (chemical mechanical polishing).
2. Power delivery and thermal management.
3. Connector technology, including photonics and radio frequency (RF).
4. Chiplets ecosystem. Chiplets are small modular chips that can serve many functions, such as a processor core, memory block, or a signal processing unit.
5. Co-design/electronic design automation (EDA).

4 Programs That Will Develop R&D Advances

• The National Semiconductor Technology Center (NSTC)
• The National Advanced Packaging Manufacturing Program (NAPMP)
• The CHIPS Metrology Program
• Manufacturing USA

Investment Priorities For NAPMP

 There are six priority research areas for NAPMP.

1. Materials and substrates.
2. Equipment, tools, and processes.
3. Power delivery and thermal management for advanced packaging assemblies.
4. Photonics and connectors that communicate with the outside world.
5. A chiplet ecosystem.
6. Co-design of multi-chiplet systems with automated tools.

Who is Eligible For Funding?

As of June 2024, about half of the proposed $52 billion funds for the CHIPS act have been dispersed. Among the companies that have received funding are Intel, Samsung, Microchip Technology, TSMC, and Global Foundries. Small and mid-size companies are also eligible for funding. CHIPS Act funding offers a great opportunity for smaller companies in the tech sector to grow as they contribute to national security and America’s leadership in the semiconductor market. As funding is expected to conclude by the end of the calendar year, applicants need to move quickly. As many companies are applying for CHIPS funding, the requirements are fairly strict. Some of the criteria used are:

• Technical feasibility and timeline. Is the product or process likely to be developed soon or will it take many years to bring to fruition?
• Commercial viability of the project.
• Workforce capabilities.
• Amount of funding needed.

Application Process

CHIPS awards can take several forms. You can receive direct funding, a loan, or a loan guarantee. The application process is as follows.

• Submit a statement of interest.
• A pre-application that describes the project. This is not mandatory but recommended.
• Full application with detailed project information, including technical specifications and economic feasibility.
• The CHIPS program office conducts due diligence. This may involve the office requesting further details about the project.
• If approved, the Department of Commerce will disperse the award. Typically, awards are given in phases based on the completion of milestones.

Riviera Finance: Another Possible Source of Funding

Companies in the tech sector making innovations to the semiconductor industry should definitely consider applying for CHIPS Act funding. However, you should also explore other funding options. Riviera Finance offers flexible funding options for businesses, such as invoice factoring. You may qualify for funding in areas such as transportation, construction, facility workers, AC, and concrete, among others. Contact us online for a free, no obligation consultation today.