WASHINGTON, OCT 20 – The United States (US) plans to increase funding by up to US$1.6 billion to advance semiconductor packaging, the Commerce Department said recently.
The funding was made under the CHIPS and Science Act, an incentive package to boost US semiconductor research and production.
“Securing domestic packaging capabilities is an important part of our mission to grow domestic semiconductor manufacturing,” US Commerce Secretary Gina Raimondo said in a statement.
Semiconductor packaging allows components to be combined as a single electronic device, and recent investments seek to drive innovation in the process.
The US Department of Commerce said the goal is to help develop an advanced domestic packaging industry that is self-sustaining and profitable.
The majority of semiconductor assembly, testing and packaging facilities are in Indo-Pacific countries, the Center for Strategic and International Studies said last year.
The CHIPS and Science Act cuts up to US$52 billion in subsidies to stimulate US domestic semiconductor production.
The US used to produce nearly 40 percent of the global chip supply, but now produces only about 10 percent, the White House said. – AFP
