First ‘CHIPS For America’ Semiconductor R&D Facility Set To Open

Part of the Biden administration's Investing in America agenda is to re-establish the U.S. as a semiconductor leader.

The Department of Commerce in conjunction with Natcast, which operates the National Semiconductor Technology Center (NSTC), on Thursday announced that the first semiconductor research facility under the CHIPS for America plan is set to open in Albany, N.Y.

The Extreme Ultraviolet (EUV) Accelerator will be located in the Albany NanoTech Complex. The EUV will conduct research and development on EUV technology that is needed to manufacture smaller, faster and more efficient chips, the Department of Commerce said in a news release.

The Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, signed by President Joe Biden in 2022 as part of the administration’s Investing in America initiative, was created to drive innovation and establish the U.S. as a leader once again in semiconductor manufacturing.

The push for leadership in the semiconductor space comes amid concerns over tensions between the U.S and China and over conflict between China and Taiwan, according to the Council on Foreign Relations, an independent, nonpartisan think tank on international relations.

“Despite producing close to 40 percent of the world’s semiconductor supply in 1990, the United States now manufactures only about 12 percent, and none of the most advanced types. In contrast, more than half of all semiconductors and some 90 percent of the world’s most advanced chips are made in Taiwan, predominantly by industry giant Taiwan Semiconductor Manufacturing Company (TSMC),” the organization said in an online report.

“Supply disruptions during the COVID-19 pandemic shook the global economy, driving growing concerns that a potential China-Taiwan conflict could cripple Western access to the chips market. More broadly, there is a growing fear that lagging behind China in such critical technologies will undermine U.S. national security and economic competitiveness,” the Council on Foreign Relations report further stated.

The CHIPS Act’s goal is to have the U.S. “produce 20 percent of the world’s leading-edge semiconductors by 2030,” Biden said in a White House press release in April.

The EUV Accelerator will begin operations in 2025, providing “access to cutting-edge EUV lithography tools and next generation R&D capabilities, including high numerical aperture (NA) EUV systems, with standard NA EUV expected by 2025 and High NA EUV in 2026.” The facility will also foster collaboration between industry, government, and academic partners to drive tech innovation, the Department of Commerce said.

“With this first proposed flagship facility, CHIPS for America is providing access to cutting-edge research and tools to the NSTC and its launch represents a key milestone in ensuring the United States remains a global leader in innovation and semiconductor research and development,” said Secretary of Commerce Gina Raimondo. “The research and development component of the CHIPS and Science Act is fundamental to our long-term national security and ensuring the U.S. remains the most technologically competitive place on earth.”