Today, the Biden-Harris Administration issued a Notice of Funding Opportunity (NOFO) asking for proposals from qualified applicants for activities to establish and operate a CHIPS Manufacturing USA institute focused on digital twins for the semiconductor industry. 

Digital twins are virtual models that mimic the structure, context, and behavior of a physical counterpart. The CHIPS for America Program predicts up to approximately $285 million for a first-of-its-kind institute focused on developing, validating, and using digital twins for semiconductor manufacturing, advanced packaging, assembly, and test processes. 

The CHIPS Manufacturing USA institute is the first Manufacturing USA institute launched by the Department of Commerce under the Biden Administration.

This move aligns with the 2022 Chips and Science Act, providing a substantial $11 billion allocation dedicated to semiconductor research and development. The initiative aims to steer the U.S. towards advanced chip technology, thereby lessening dependence on international supply chains, reported Bloomberg.

Digital twin-based research can also leverage emerging technology like artificial intelligence to help accelerate the design of new U.S. chip development and manufacturing concepts and significantly reduce costs.

The U.S. Department of Commerce has already earmarked close to $33 billion in initial grants to bolster chip production within the country. 

Leading chipmakers, including Nvidia Corp (NASDAQ:NVDA) and Advanced Micro Devices, Inc (NASDAQ:AMD), have earned breakthroughs in AI technology chips courtesy of the U.S. and global Big Tech companies splurging on expanding their AI moat.

This effort is crucial in establishing or expanding semiconductor fabrication sites, commonly referred to as fabs. 

Intel Corporation (NASDAQ:INTC) is in discussions with the Biden administration to receive over $10 billion in subsidies. If realized, it will mark the largest allocation under a plan to revive semiconductor manufacturing.

Micron Technology, Inc (NASDAQ: MU) has signed a non-binding Preliminary Memorandum of Terms (PMT) for $6.1 billion in funding under the CHIPS and Science Act.

"Digital twin technology will help transform the semiconductor industry," said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio.

“This historic investment in the CHIPS Manufacturing USA institute will help unite the semiconductor industry to unlock the enormous potential of digital twin technology for breakthrough discoveries. This is a prime example of how CHIPS for America is bringing research institutions and industry partners together in public private partnership to enable rapid adoption of innovations that will enhance domestic competitiveness for decades to come.”

Details of specific projects will hinge on applications submitted by the September 9 deadline, the report added. Notably, only institutions incorporated and primarily operating in the U.S. are eligible for these awards.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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