The Biden administration aims to leverage the $280 billion CHIPS and Science Act to attract semiconductor companies focusing on digital twins, virtual representations of physical chips.
According to The Verge, this initiative includes the establishment of the CHIPS Manufacturing USA institute, which seeks to create regional networks for collaboration and resource-sharing among companies developing both physical semiconductors and their digital twins.
Digital twins enable easier simulation of chip behavior, aiding in testing new processors before production.
"Digital twin technology can help to spark innovation in research, development and manufacturing of semiconductors across the country - but only if we invest in America's understanding and ability of this new technology," Commerce Secretary Gina Raimondo said in a press release.
She added: "This new Manufacturing USA institute will not only help to make America a leader in developing this new technology for the semiconductor industry, it will also help train the next generation of American workers and researchers to use digital twins for future advances in R&D and production of chips."
The administration plans to host briefings for interested parties to discuss funding opportunities, which will cover operational costs of the institute, digital twin research, facility access, and workforce training.
The CHIPS Act, enacted in 2022 to bolster domestic semiconductor manufacturing, has faced challenges meeting capital demands, with requests surpassing the allocated $28 billion.
Key players such as Intel Corp (NASDAQ: INTC) and Micron Technology Inc (NASDAQ: MU) are poised to receive government funding under the CHIPS Act. The administration aims to incentivize semiconductor companies, particularly in developing new processor types, amid rising demand driven by advancements like AI.