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Biden admin. earmarks $285M for digital twins semiconductor development

President Joe Biden holds up a semiconductor in February 2021 as he signs an executive order to address a chip shortage. On Monday, his administration announced hundreds of millions of dollars in funding for a new institute aimed at preventing the United States from being affected if a similar global shortage of semiconductors were to occur. Pool File Photo by Doug Mills/UPI
President Joe Biden holds up a semiconductor in February 2021 as he signs an executive order to address a chip shortage. On Monday, his administration announced hundreds of millions of dollars in funding for a new institute aimed at preventing the United States from being affected if a similar global shortage of semiconductors were to occur. Pool File Photo by Doug Mills/UPI | License Photo

May 6 (UPI) — The Biden administration on Monday announced it will grant $285 million from CHIPS and Science Act funding for a first-of-its-kind institute to develop digital twins for the chip manufacturing industry.

The announcement is the Biden administration’s latest effort to invigorate U.S. semiconductor manufacturing following the COVID-19-induced global shortage of 2022-2023 that threatened U.S. supply chains.

The Commerce Department announced the notice of funding opportunity Monday to establish and operate a CHIPS Manufacturing USA institute focused on digital twins, which are virtual models that mimic the structure, context and behavior of a physical counterpart.

The department said the funding has been earmarked for an institute to develop, validate and use digital twins for semiconductor manufacturing, advanced packaging, assembly and test processes.

“Digital twin technology can help to spark innovation in research, development, and manufacturing of semiconductors across the country — but only if we invest in America’s understanding and ability of this new technology,” Secretary of Commerce Gina Raimondo said in a statement.

“This new Manufacturing USA institute will not only help to make America a leader in developing this new technology for the semiconductor industry, it will also help train the next generation of American workers and researchers to use digital twins for future advances in R&D and production of chips.”

The Biden administration has heralded the CHIPS and Science Act, which President Joe Biden signed in August 2022, as one of its policy accomplishments in an effort to not only spur domestic production of semiconductors to boost employment but also as a national security insolation to keep the United States at the forefront of leading technologies, from nanotechnologies to artificial intelligence.

In August, when the act turned a year old, Biden boasted that the legislation had already created more than 800,000 new manufacturing jobs across the country.

This year, several initiatives have also been announced under the bill, including the disbursement of some $162 million to Microchip Technology in January to triple its production capacity by expanding its operations in Oregon and Colorado.

Last month, Intel was awarded $8.5 billion to expand semiconductor facilities in four states.

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