US Invests $285M in Digital Twins for AI Chips to Boost Supply Chain

The Biden Administration has announced a $285 million investment into companies that can build digital twins of semiconductors.

Under the CHIPS for America Program, the administration said it is open to proposals from companies looking to establish these virtual assets, creating and operating the new CHIPS Manufacturing USA institute.

The institute will feature digital twins of physical chips, offering a more true-to-life means of testing and developing chip production and assembly, as the U.S. looks to bolster domestic supply chains of the tech and reduce research and development costs.

“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,” said Gina Raimondo, secretary of commerce.

“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.”

Funded activities are expected to include research and development of digital twins, establishment and running of physical and digital facilities, industry-relevant demonstration projects and digital twin-related workforce training.

Related:Biden to Award Intel $20B to Advance U.S. Chip Manufacturing

“Under President Biden’s leadership, we’re writing a new chapter in semiconductor manufacturing in America,” said Arati Prabhakar, director of the White House office of science and technology policy. “CHIPS R&D is about making sure American manufacturers can continue to succeed and thrive, 

“Digital twin technology can accelerate the costly and time-consuming work to develop the next generation of robust manufacturing for this extraordinarily complicated product.”

The administration will hold briefings with potential companies this month, to discuss funding opportunities, though applications will remain open until September.

The Biden administration first launched the CHIPS Act in 2022, established to “strengthen American manufacturing, supply chains, and national security” in the fields of emerging tech, such as nanotechnology, quantum computing and AI.  

The CHIPS Manufacturing USA institute joins 17 existing Manufacturing USA institutes established to support U.S. manufacturing.