Today, the Biden-Harris Administration announced that the U.S. Department of Commerce and the Semiconductor Research Corporation Manufacturing Consortium Corporation (SRC) are entering negotiations for the Department to provide SRC $285 million to establish and operate a Manufacturing USA Institute. With combined funding totaling $1 billion, this investment will support the launch of the first-of-its-kind CHIPS Manufacturing USA Institute. The new institute, known as SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) Institute will focus on efforts to develop, validate, and use digital twins to improve domestic semiconductor design, manufacturing, advanced packaging, assembly, and test processes. SMART USA will join an existing network of seventeen institutes designed to increase U.S. manufacturing competitiveness and promote a robust R&D infrastructure. SRC is an important part of North Carolina’s research ecosystem, including decades-long relationships with North Carolina’s universities.

“America’s technological leadership on the world stage depends on its ability to collaborate with the best and brightest around the globe,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to the leadership of President Biden and Vice President Harris, we’re opening new avenues to better safeguard U.S. national security and further technological innovation with the establishment of the SMART USA Institute. With new Digital Twin capabilities, America is fostering unparalleled opportunities to collaborate with experts and researchers anywhere in the world to develop the next frontier of technological advancements in the semiconductor industry.”

“We are honored by CHIPS for America's recognition of SMART USA Institute's pivotal role in driving semiconductor innovation. This designation as the CHIPS Manufacturing USA institute reaffirms our dedication to fostering collaboration and excellence across the semiconductor ecosystem. At its core, the SMART USA Manufacturing Institute is about bringing people together as a cohesive team. Through this collaboration, we harness the collective strengths and expertise of our partners. Teaming is the cornerstone of our strategy, and it is through this united effort that we will succeed in achieving our ambitious goals,” said Dr. Todd Younkin, Executive Director of SMART USA.

SMART USA will focus on the development, validation, and application of digital twins to enhance semiconductor manufacturing processes, including advanced packaging, assembly, and testing. By building a national open-source digital SMART Backbone for semiconductor manufacturing process flow, SMART USA will reduce time and cost of chips design, improve efficacy of domestic production, and return chips productivity to American soil.

The mission of SMART USA is to foster a collaborative ecosystem within the domestic semiconductor industry enabled by shared facilities; support industry-led solutions through funded research projects; accelerate technology towards commercialization through significant co-investment; and enable digital twin workforce training. SMART USA will enable a new generation of digitally skilled workforce, while at the same time leveraging digital twins to reach remote, underserved, underrepresented, and inaccessible communities.

With over four decades of experience uniting industry, government, and academia, SRC remains attuned to the evolving needs of the industry and anticipates the emerging requirements of the semiconductor sector. The CHIPS Manufacturing USA Institute was established through the CHIPS and Science Act of 2022. After releasing the Decadal Plan for Semiconductors in 2021, which continues to provide crucial insight and guidance to the industry, SRC began laying the groundwork for the SMART USA Institute. This was done in partnership with the Founding Executive Committee, which includes industry giants Advanced Micro Devices, IBM, Intel Corporation, Micron Technology, and Texas Instruments, as well as prestigious universities Georgia Institute of Technology, Purdue University, and State University of New York. SRC’s final submitted proposal garnered broad community support, including more than 150 participating organizations, all unified in their commitment to advancing semiconductor manufacturing and research.

David Henshall, SRC Vice President of Business Development, emphasized, “The SMART USA Institute (SMART USA) will advance American digital twin technology and apply it to the full semiconductor supply chain, enabling rapid process optimization, predictive maintenance, and agile responses to chips supply chain disruptions. These efforts will strengthen U.S. global competitiveness, ensuring our country reaps the rewards of American innovation at scale.”

The SMART USA Institute aims to address the critical challenges facing semiconductor manufacturing by leveraging cutting-edge research, fostering educational initiatives, and promoting industry-academic partnerships. By uniting a diverse array of stakeholders, the institute is poised to make significant strides in enhancing the competitiveness and resilience of the U.S. semiconductor industry.

The selection of the SMART USA Institute is contingent upon the successful negotiation of an Other Transaction Agreement (OTA). The terms and conditions contained in any final contract may differ from those being announced today. We are committed to working diligently with all parties involved to finalize an agreement that meets the needs and expectations of all stakeholders.

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 https://www.chips.gov to learn more.

About Semiconductor Research Corporation

Semiconductor Research Corporation (SRC) is a world-class, non-profit consortium that works with industry, government, and academia partners to define, fund and manage university research on behalf of its member companies. Through its highly regarded research programs, SRC plays an indispensable part in both research and development strategies of the most influential industry leaders. Members of SRC gain access to research results, fundamental IP, and highly experienced students to compete in the global marketplace and build the workforce of tomorrow. For more information and to stay informed on our advancements, visit www.src.org.

SRC/SMART USA Institute Media Contact Jennifer Q Dickens, media@src.org