Fueling Microchip Making in these Hot Summer Months

If you’re like me, you’ll agree, summer is a wonderful time of the year. I’ve been attempting—with limited success--to improve my golf game, enjoy a drink by the pool, and take in the wonderful warm weather. Of course, summer is also time for work and this summer, critical work to bolster our national security is happening from coast to coast.?

Next Wednesday, July 24th, is an important day—another step in the journey to ensuring that if the United States is forced to fight, we have a technological advantage to win. Next week, Microelectronics Commons hubs will be accepting project ideas to create cutting-edge, trusted semiconductors in the six technical areas that are critical to the DoD: 5G/6G, AI Hardware, Commercial Leap-Ahead Technologies, Electromagnetic Warfare, Secure Edge/IoT Computing and Quantum Technology.

The Call for Topics (CFT) , as it’s known, will allow teams of small technology businesses, academics and established defense contractors to come up with novel ideas to solve problems and push the defense technology envelope forward.?

“The CFT is a unique opportunity for DoD to essentially crowd-source ideas , not just for Commons but also to inform other USG (U.S. government) initiatives or road mapping efforts,” said Stephanie Lin, the NSTXL Director for Microelectronics Commons. “It’s an opportunity for non-traditional defense entities and startups to be heard.”

Microelectronics Commons , as you may well be aware by now, is the tip of the CHIPS and Science Act spear—the landmark, $280BN legislation authored by my fellow Marine and friend, Senator Todd Young.?

As part of CHIPS and Science, just days ago, the Department of Commerce awarded $300M to fund three facilities focused on microelectronics research and development.?

“To reclaim America’s semiconductor leadership, we can’t just invest in manufacturing capacity , we also need to supercharge our research and development ecosystem,” said US Secretary of Commerce Gina Raimondo.

But the U.S. government is not just spending money on research and development, this is about the wholesale reshoring of everything--microelectronics R&D, design and manufacturing--capabilities that we have steadily lost to Asia over the past few decades—and much of it to our peer-to-peer adversary, China.?

Two weeks ago, a $1.6BN funding competition was launched for chip packaging research—the largest funding opportunity to come out of the CHIPS and Science Act so far. Currently the U.S. only accounts for 3% of the world capacity of packaging, the process of encasing and connecting microchips, the vast majority is done in Asia. That said, companies like Intel, Samsung and SK hynix are bringing microchips packaging back to the U.S., and they’re doing it in areas not traditionally known for high tech manufacturing, in places like West Lafayette, Indiana; Columbus, Ohio; and Sherman, Texas.?

The reshoring effort that was introduced as the Endless Frontier Act in 2020 ?is moving ahead rapidly--so far, some $35BN has been awarded to companies investing in domestic microelectronics design, development and production.?

Of course, the goal of government funding is to provide a carrot to industry—seed money to reduce risk and incentivize private sector investment. It is also helping grow the economy by potentially adding tens of thousands of jobs.?

Case in point, the infusion of $24M to Rocket Lab, a global leader in launch services and space systems, to vastly increase production of radiation-tolerant microchips designed for space applications like satellites and spacecraft.??

“This strategic investment will empower Rocket Lab to significantly expand and modernize our operations, bolstering our economic footprint and technological leadership in New Mexico, while adding more than one hundred manufacturing jobs to the U.S. economy in addition to reinforcing our national security,” said Adam Spice, Rocket Lab’s Chief Financial Officer.?

Indeed, The Heat is On, this summer, borrowing the title of the song by the late, great Glenn Fry . Yes, we need some pool time and to hit the links, but as the former Eagles front man put it, You can make or break, Can win or lose, That's a chance you take when the heat's on you. This summer we have work to do.?