On November 19, 2023, the Biden administration announced that the U.S. Department of Commerce is in negotiations with Semiconductor Research Corporation (SRC) to provide $285 million in subsidies under the CHIPS and Science Act. The funding will support the establishment and operation of a semiconductor manufacturing research institute based in Durham, North Carolina.
SMART USA institute: a key to semiconductor innovation
SRC’s total investment amounts to $1 billion, aimed at creating the first U.S. semiconductor manufacturing research institute, named SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA). The institute will focus on the development, validation, and application of digital twins to enhance domestic semiconductor design, manufacturing, advanced packaging, assembly, and testing processes.
SMART USA will join an existing network of 17 research institutes aimed at boosting U.S. manufacturing competitiveness and fostering a strong research infrastructure. SRC plays a significant role in North Carolina’s research ecosystem, which has been strengthened by decades of collaboration with the University of North Carolina.
Strengthening U.S. tech leadership
U.S. Secretary of Commerce Gina Raimondo stated, “America’s technological leadership on the world stage depends on our ability to collaborate with the best and brightest around the globe. Thanks to President Biden and Vice President Harris’s leadership, we are opening new pathways to better secure national security and drive tech innovation forward through the establishment of SMART USA.”
Digital twins: the future of semiconductor R&D
A digital twin is a virtual model that replicates a physical object, such as a chip or complex machine. Engineers and researchers can use these virtual models to design, develop, and test processes digitally before applying them in real life. Research based on digital twins can also leverage emerging technologies like artificial intelligence (AI) to optimize chip designs, improve production efficiency, and reduce costs by minimizing expensive adjustments and simplifying operations. Moreover, these technologies will provide new workforce opportunities by offering real-time feedback and location-based learning.
Advancing semiconductor manufacturing in the U.S.
Arati Prabhakar, Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy, highlighted, “Today’s announcement is another step forward under President Biden’s leadership to bring semiconductor manufacturing back to America and invest in the research and development needed to win the future.”
SMART USA’s strategic objectives
SMART USA aims to bring together companies, startups, researchers, and academics to leverage both physical assets and novel digital capabilities for:
- Accelerating Advanced Semiconductor Technology: By streamlining processes and shortening time-to-market, SMART USA will help drive innovation in U.S. chip design and manufacturing.
- Reducing Time and Costs of Chip Production: The institute will use digital twins to implement efficient design and validation methods, significantly lowering costs and improving productivity.
- Workforce Development: SMART USA will also focus on creating workforce training programs to develop skills and prepare workers for the next generation of semiconductor jobs.
Digital twin technology: a new frontier for U.S. semiconductor R&D
Laurie E. Locascio, Deputy Under Secretary for Standards and Technology and Director of the National Institute of Standards and Technology (NIST), remarked, “Digital twin technology opens a new frontier for innovation in the U.S. semiconductor R&D ecosystem. With SMART USA, the U.S. is expanding its semiconductor manufacturing and R&D capabilities, strengthening the domestic semiconductor ecosystem, which will be a key innovation engine for years to come.”
Collaboration for a stronger semiconductor ecosystem
Todd Younkin, Executive Director of SMART USA, expressed gratitude for the recognition, saying, “We are honored to receive the recognition of SMART USA’s critical role in advancing semiconductor innovation. Being named a CHIPS Manufacturing USA institute reaffirms our commitment to fostering collaboration and excellence across the semiconductor ecosystem.”
SMART USA will include over 150 partner entities across more than 30 states, representing industry, academia, and all aspects of supply chain design and manufacturing. Collaborators also include 10 national labs, 5 manufacturing research institutes, 5 economic development organizations, and 4 trade and labor unions.
SMART USA’s five-year goals
In the next five years, SMART USA plans to:
- Facilitate Collaboration: Bring together stakeholders from semiconductor design, manufacturing, advanced packaging, assembly, and testing to solve shared challenges related to digital twins.
- Reduce U.S. Chip Development and Manufacturing Costs by Over 35%: Using digital twins to improve capacity planning, production optimization, facility upgrades, and real-time process adjustments.
- Accelerate the Development Cycle: Shorten semiconductor manufacturing, packaging, assembly, and testing cycles by 30%, speeding up the development and adoption of breakthrough tools, materials, and processes.
- Reduce Greenhouse Gas Emissions: Demonstrate a 25% reduction in greenhouse gas emissions related to semiconductor manufacturing.
- Train Over 100 Workers and Students: Provide training in digital twin technology to more than 100 workers and students, fostering the next generation of semiconductor professionals.
Through its innovative initiatives, SMART USA is set to play a key role in reshaping the future of semiconductor manufacturing in the United States.
