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Biden-Harris Administration Launches Next Phase for Over $5 Billion in CHIPS R&D Investments, Including the National Semiconductor Technology Center (

Daniel Nenni

Admin
Staff member
February 09, 2024

Square with rounded edges. Fill of square looks like American flag. Coming off the sides of the square are lines with unfilled circles at end. Words underneath: CHIPS for AMERICA


Today, leaders from the Departments of Commerce, Defense, and Energy; and the National Science Foundation; and the Chief Executive Officer of the National Center for the Advancement of Semiconductor Technology (Natcast) gathered at the White House to announce over $5 billion in expected investment in the CHIPS R&D program, including the National Semiconductor Technology Center (NSTC), and formally establish a public-private consortium for the NSTC. The announcement included hundreds of millions of dollars of expected investment in the semiconductor workforce; along with specific funding announcements in packaging, metrology, and a CHIPS Manufacturing USA Institute. This announcement is a reflection of President Biden’s commitment to American innovation and research and development.

The NSTC is the centerpiece of CHIPS for America’s $11 billion research and development (R&D) program. A once in-a-generation opportunity, the NSTC will bring together government, industry, labor, customers, suppliers, educational institutions, entrepreneurs, and investors to accelerate the pace of new innovations from idea to marketplace. As a public-private consortium, the NSTC will lower the barriers to participation in semiconductor R&D to create a more vibrant national ecosystem and to directly address fundamental needs for a skilled, diverse semiconductor workforce.

Following the announcements and consortium agreement signing, leaders from across the semiconductor community participated in roundtables led by White House Office of Science and Technology Policy Director Arati Prabhakar, National Science Foundation Director Sethuraman Panchanathan, and Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio, along with senior government leaders from the White House; Departments of Commerce, Defense, Energy, Labor, Education; and the National Science Foundation. The roundtables centered on the R&D opportunities and need for industry participation, along with how CHIPS for America will help increase access to talent for employers and access to opportunity for Americans who want to work in the semiconductor industry.

“CHIPS research and development programs are at the core of our greatest innovations and help to find the solutions for the semiconductor industry’s most pressing challenges. With strategic investments in R&D complementing targeted industry incentives, CHIPS for America will not only bring semiconductor manufacturing back to the U.S. – it will keep it here for good. As we create opportunities for good-paying jobs, the workforce initiatives, such as the NSTC Workforce Center of Excellence, will help ensure a diverse, skilled, and prepared workforce across the nation,” said Secretary of Commerce Gina Raimondo.

“Because of President Biden’s Investing in America agenda, semiconductor manufacturing is coming back in America. Now it’s time to make sure we win the future, too. The NSTC is a place where our CHIPS R&D investments will deliver big advances—advances that will open opportunities for the American semiconductor industry, create good-paying jobs, and strengthen our supply chains,” said White House Office of Science and Technology Director Arati Prabhakar.

President Biden’s CHIPS and Science Act appropriated $39 billion to the Department of Commerce in funding to onshore semiconductor manufacturing through an incentives program. The appropriation also included $11 billion to advance U.S. leadership in semiconductor R&D through four programs: the NSTC, the National Advanced Packing Manufacturing Program, the CHIPS Metrology Program and the CHIPS Manufacturing USA Institute.

“For the United States to lead the world in semiconductors, all parts of the R&D enterprise must work hand in hand with manufacturers to bolster each other’s successes and move the industry ever forward,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology (NIST) Director Laurie E. Locascio. “With the NSTC at the epicenter, CHIPS R&D programs are working to revolutionize the U.S. semiconductor ecosystem and enable rapid adoption of innovations to enhance domestic competitiveness for decades to come.”

With the official launch of the NSTC consortium, there are opportunities to express interest in joining the NSTC. Further information about this may be found on the Natcast website.

“Our first priority is to build a community whose members will help define the strategy and investments core to the semiconductor R&D ecosystem,” said Deirdre Hanford, CEO of Natcast, the nonprofit operator of the NSTC. “The NSTC represents a once-in-a-generation opportunity to establish a new, long-lasting institution that can serve as an engine of innovation to benefit our nation's national and economic security for decades to come.”

The NSTC is one of four CHIPS for America research and development programs. Together, these programs are establishing the innovation ecosystem needed to ensure that American semiconductor fabrication facilities, including those funded by the CHIPS for America Act, produce the world’s most sophisticated and advanced technologies. CHIPS for America’s Jay Lewis, NSTC Program Director, and Deirdre Hanford, CEO of Natcast, will provide an update on early NSTC activities in March 2024.

About CHIPS for America  
CHIPS for America is part of President Biden’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development (R&D) Office, responsible for R&D programs. Both offices sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. NIST promotes U.S. innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life. NIST is uniquely positioned to successfully administer the CHIPS for America program because of the bureau’s strong relationships with U.S. industries, its deep understanding of the semiconductor ecosystem, and its reputation as fair and trusted. Visit chips.gov to learn more.
 
Labor will be part of the NSTC? How? Union reps? Sounds like BS.

I'm still unclear on how inventions created in the NSTC labs will be managed. Will the NSTC hold patents and license them to only US companies? Will companies have to cross-license with other member companies when they participate in NSTC research? Will non-US citizens be allowed to work in the NSTC? Must NSTC research only be used in US fabs? Inquiring taxpayers would like to know.
 
Is this real? is this the big announcement from chips act? a consortium that will move at government speed?

the NSTC will never develop anything so we dont need to know what to do with the inventions.
 
Is this real? is this the big announcement from chips act? a consortium that will move at government speed?

the NSTC will never develop anything so we dont need to know what to do with the inventions.
Never say never. ;)

The Dept of Commerce says the NSTC will be "fast moving". See page 20:


On page 22 it talks about "IP licensing fees".

I'm still wondering... does TSMC get to join? If you take CHIPS Act funds do you have to join as a condition of getting funds?

There are more unknowns here than about UFOs.
 
Never say never. ;)

The Dept of Commerce says the NSTC will be "fast moving". See page 20:


On page 22 it talks about "IP licensing fees".

I'm still wondering... does TSMC get to join? If you take CHIPS Act funds do you have to join as a condition of getting funds?

There are more unknowns here than about UFOs.
UFOs will produce more semiconductor inventions than NSTC and UFOs will still be around in 20 years.....

They are forming a working group to decide on whether to form a steering committee to study whether to authorize a discussion on TSMCs participation.
 
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Never say never. ;)

The Dept of Commerce says the NSTC will be "fast moving". See page 20:


On page 22 it talks about "IP licensing fees".

I'm still wondering... does TSMC get to join? If you take CHIPS Act funds do you have to join as a condition of getting funds?

There are more unknowns here than about UFOs.
If we checked history of SEMATECH, intel, IBM, Samsung, TSMC, Hynix, Micron were all members. Unfortunately imec replaces SEMATECH for a while. What will be the value NSTC provides to the industry? Should not be just a second source or duplicate of similar consortium.
 
If we checked history of SEMATECH, intel, IBM, Samsung, TSMC, Hynix, Micron were all members. Unfortunately imec replaces SEMATECH for a while.
SEMATECH was an industry consortium which got DARPA funding, and was run by private sector representatives. Robert Noyce was the first CEO. The NSTC is a US government agency with leaders appointed by the Department of Commerce. Two very different animals.
What will be the value NSTC provides to the industry? Should not be just a second source or duplicate of similar consortium.
In my opinion, the NSTC is a waste of money, poorly conceived, and may complicate our relationships with important allies.
 
I recommend reading the entirety of the NSTC document I referenced in a previous post. Here it is again.


It is not an easy read. Some of the organizational concepts included just pop into an innocuous sentence in a paragraph. Like this one that caused me to stop and think about the implications of a quip like, on page 21, that:

"... the Department anticipates the creation of a new, purpose-built, independent, nonprofit entity with the requisite neutrality, expertise, leadership, and capacity to serve as the operator of the NSTC."

So the Department of Commerce is going to completely define the NSTC, initially (at least) choose the leadership, and then spin it out into a private non-profit corporation which will have a charter defined by the DoC, but... it will effectively report to the "CHIPS R&D Office" which remains part of the DoC. This complex arrangement appears to be a legal maneuver for the DoC to have control over the NSTC without having to actually make the NSTC part of the US government. Perhaps I'm wrong, but the diagram on page 23 makes it look like that. The CHIPS R&D Office has responsibility for "funding, oversight, and support". So does the Congress over the Dept of Defense. ;)

Perhaps I'm underestimating the US Congress, but I can't believe any congresspeople really understood what they were voting for in the CHIPS Act.
 
If we checked history of SEMATECH, intel, IBM, Samsung, TSMC, Hynix, Micron were all members. Unfortunately imec replaces SEMATECH for a while. What will be the value NSTC provides to the industry? Should not be just a second source or duplicate of similar consortium.
I am obviously not a huge fan of these consortiums... government or private.

But I have been told at IEDM that startups in the US and research universities do wish that there was a IMEC like group in the US. So they will be happy. But this will not affect fab builds in the US or revenue of Major companies like Intel, Micron IMO . is it any better to have it in the US vs IMEC? Start ups like it, Major companies dont seem to care. The US government is not good at stuff like this.
 
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