US Allocates $285M to Develop Digital Twins for AI Chip Innovation and Supply Chain Enhancement

The Biden Administration has announced a significant investment of $285 million aimed at fostering the development of digital twins for semiconductors. Under the CHIPS for America Program, the initiative invites proposals from companies interested in creating and managing these virtual replicas. This effort will contribute to the establishment of a new CHIPS Manufacturing USA institute, which will utilize digital twins of physical chips to enhance testing and development processes in semiconductor production and assembly.

As the nation aims to strengthen its domestic supply chains and reduce the costs associated with research and development, Commerce Secretary Gina Raimondo emphasized the critical role of digital twin technology. “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,” Raimondo stated.

The new Manufacturing USA institute is designed not only to position the U.S. as a leader in semiconductor technology but also to equip the next generation of American workers and researchers with the skills needed to leverage digital twins for future advancements in research and development and chip production. Funded activities under this initiative will focus on several key areas, including:

- Research and development of digital twin technology

- Establishment and management of both physical and digital facilities

- Industry-relevant demonstration projects

- Workforce training related to the utilization of digital twins

Arati Prabhakar, director of the White House Office of Science and Technology Policy, highlighted the transformative potential of this initiative. “Under President Biden’s leadership, we’re writing a new chapter in semiconductor manufacturing in America. CHIPS R&D is about ensuring that American manufacturers can continue to succeed and thrive. Digital twin technology can accelerate the costly and time-consuming efforts involved in developing the next generation of robust manufacturing processes for these highly complex products.”

To further support potential participants, the administration will conduct briefings with interested companies this month to outline funding opportunities. However, the application process will remain open until September, providing ample time for companies to prepare their proposals.

Initially launched in 2022, the CHIPS Act was designed to strengthen American manufacturing, enhance supply chains, and bolster national security within the realm of emerging technologies, including nanotechnology, quantum computing, and artificial intelligence. The CHIPS Manufacturing USA institute will complement the current network of 17 existing Manufacturing USA institutes that focus on advancing U.S. manufacturing capabilities.