By Lee Shappell/Ahwatukee Foothills News
A landmark $1.2 billion in direct funding to support the semiconductor industry is coming to Tempe in two grants announced Jan. 16 by the U.S. Department of Commerce.
The department awarded $1.1 billion to Natcast to operate and manage the flagship computer-chip packaging and prototype research-and-development facility at ASU Research Park, 8240 S. River Parkway in south Tempe, which last week was selected as site of the facility.
It will be capable of testing prototype chips at scale. Only one other facility in the world outside of China has that capability.
Natcast operates the National Semiconductor Technology Center.
The Tempe facility will jointly host NSTC Prototyping as well as National Advanced Packaging Manufacturing Program’s Advanced Packaging Piloting. Expected to open in 2028, it will be among only three CHIPS for America research and development flagship facilities in the nation.
Also, the Commerce Department announced $100 million in direct funding via a grant to Arizona State University to support development of the next generation of microelectronics packaging through fan-out-wafer-level-processing.
That semiconductor packaging technology improves the electrical and thermal performance of chips used in handheld electronics and phones.
Centered at ASU Advanced Electronics and Photonics Core Facility in Tempe, this project will boost ASU’s research in exploring the commercial viability of 300 mm wafer-level and 600 mm panel-level manufacturing, a technology that does not exist as a commercial capability in the U.S. today.
Microelectronics packaging refers to the process of designing and assembling miniature electronic systems, like integrated circuits chips.
It connects them together and encloses them within a protective housing, allowing them to interface with a circuit board and function within an electronic device, while managing power distribution, signal integrity and heat dissipation.
Essentially, it’s the method of “wrapping” a microchip to make it usable in a larger system.
A computer chip, also known as a microchip or integrated circuit, is a small electronic device that processes data and stores information. It is made of semiconductor materials like silicon or germanium.
Microelectronics packaging protects sensitive components of a chip from environmental factors like moisture and mechanical stress, while also providing electrical connections to the external circuit board.
The chip is attached to a substrate, or under layer. Connections are made to its terminals, and the whole assembly is sealed.
Proper packaging design is crucial for optimizing performance, reliability and size of electronic devices.
Advanced packaging in the semiconductor industry is a set of sophisticated techniques that combine multiple chips onto a single package, allowing increased functionality, improved performance and reduced power consumption.
It integrates components rather than packaging them individually. It is a way to create more powerful electronic devices by stacking and connecting chips in complex ways beyond traditional packaging methods.
“Bolstering our advanced-packaging capabilities is key to America remaining a global leader in leading-edge semiconductor manufacturing,” said U.S. Secretary of Commerce Gina Raimondo.
“These CHIPS for America investments and CHIPS research and development flagship facilities will strengthen our end-to-end semiconductor ecosystem and help close the gap between invention and commercialization to ensure the United States is a global leader in semiconductor innovation and manufacturing.”
Tempe ranks among the nation’s top 10 technology submarkets, according to CBRE, the world’s largest commercial real estate services and investment firm.
The CBRE Tech30 measures the tech industry’s impact on office space in the U.S. and Canada. The report ranks the 30 leading tech markets and 10 up-and-coming tech markets. Tempe has been on this list for several years.
Since 2020, semiconductor industry leaders have announced more than 40 expansions in Arizona, creating more than 16,000 high-paying jobs with more than $102 billion in investment.
The expected partnership with ASU will jumpstart R&D and leverage programs underway at the university, solidifying Arizona’s place at the center of America’s advanced-manufacturing economy and opening pathways for continued business investment and job growth.
Within a decade, CHIPS National Advanced Packaging Manufacturing Program-funded activities coupled with CHIPS manufacturing incentives is expected to establish a self-sustaining, domestic, advanced-packaging industry, where advanced-node chips manufactured in the U.S. are packaged in the U.S.
“Arizona has benefitted more than any other state from the CHIPS and Science Act,” said Rep. Greg Stanton, who represents Tempe in Congress, and who worked with the Commerce Department on the selection of Tempe for the R&D site.
“This historic funding will help ASU develop the next-generation technology America needs to compete and win on the world stage and train the future of the semiconductor workforce here at home.”
The technology developed will be leveraged in new applications and market sectors, and at scale. Workforce development also is expected to take a leap forward.
“Tempe and Arizona continue to be at the center of groundbreaking research and development, leading the way in next-generation technology,” said Tempe Mayor Corey Woods.
“We are proud to be the home of this new flagship facility that will serve as a hub for semiconductor innovation nationwide. We thank our partners at ACA and ASU, which have developed a world-class research ecosystem right in our backyard to serve our community and beyond.”
The Tempe R&D center is the latest boost to the Valley in the global semiconductor space.
A massive Taiwan Semiconductor Manufacturing Co. plant is expected to open this year in the northwest Valley, and the sprawling Intel campus in Chandler has a $20 billion expansion to build two new chip factories underway with the largest private investment ever in the state.
$1.1B for R&D
The huge grant to Natcast’s Advanced Packaging Facility in Tempe will enable it to operate and manage advanced packaging as well as prototyping.
The facility will feature cutting-edge capabilities to bridge the gap between laboratory research and full-scale semiconductor production, enabling researchers and industry leaders to develop and test new materials, devices and advanced packaging in a state-of-the-art research and development environment.
Key packaging capabilities funded by this award are expected to include a piloting line to enable the development and commercialization of advanced packaging processes.
Prototyping capabilities will consist of at least one 300mm full-flow complementary metal-oxide-semiconductor technology as a stable baseline for experiments.
The facility will allow for a variety of R&D in a manufacturing-like environment that would not be feasible at a manufacturing site, including novel materials and device architectures.
The facility will support U.S. workforce-development efforts by providing opportunities for collaborative, hands-on research utilizing industry-leading tools and equipment.
“This groundbreaking effort will mean that researchers and startups won’t need to go to China or Europe to test out their cutting-edge prototype microchips. They’ll be able to do that right here in America,” said Arizona Sen. Mark Kelly, who played a role in Research Park’s selection.
“The most advanced microchips in the world that power everything from AI to quantum computing will now be able to be developed, tested, manufactured and packaged in our state.”
Kelly was a key driver of the CHIPS and Science Act, as well as the Building CHIPS in America Act, which boosted Arizona in the chip industry.
As a key part of President Biden’s Investing in America agenda, CHIPS for America is driven by the growing need to bolster the U.S. semiconductor supply chain, accelerate U.S. leading-edge R&D and create high-quality jobs.
As one of three CHIPS R&D flagship facilities, the Research Park facility will be amplified by Arizona’s robust microelectronics landscape.
It includes leading front-end semiconductor manufacturing, equipment and materials suppliers, and advanced packaging companies as well as a vibrant university research environment and pioneering workforce training initiatives at colleges and universities.
CHIPS for America, which sits within the National Institute of Standards and Technology at the Commerce Department, makes investments that, in turn, stimulate more private-sector investment that create high-wage, high-tech jobs.
The CHIPS Research and Development Office is responsible for R&D programs.
Natcast is a non-profit entity created to operate the National Semiconductor Technology Center established by the CHIPS and Science Act of the U.S. government. The NSTC is a public-private consortium dedicated to semiconductor R&D in the United States.
$100M to ASU for chip packaging
Organic substrate-based microelectronics refers to the field of microelectronics where electronic components are built on an under layer made from organic materials, like polymers or small organic molecules, instead of traditional inorganic materials like silicon.
This allows for flexible, lightweight and potentially low-cost electronic devices for wearable electronics and large-area displays, among others.
Through ASU’s Substrate-based Heterogeneous Integration Enabling Leadership Demonstration for the USA program, the university, in close collaboration with Deca Technologies and numerous program partners, will design and develop molded-core under layers that enable improved performance in organic substrate-based microelectronics packages.
The molded-core substrates with embedded components support applications such as data-center artificial intelligence, edge AI, high-performance computing, advanced driver-assistance systems and 5G/6G communications.
This project also supports ASU’s research in exploring the commercial viability of 300 mm wafer-level and 600 mm panel-level manufacturing, a technology that does not exist as a commercial capability in the U.S. today.
ASU will provide learning experiences and advanced-packaging training for future generations of engineers and technicians. It will develop training courses and micro credentials and will implement internship, apprenticeship and researcher-in-residence programs for hands-on learning.
The university also will train and reskill current working professionals and raise awareness of microelectronics in K-12 students to expand the STEM pipeline to meet the domestic advanced-packaging workforce demand for years to come.