ASU, Deca Technologies awarded $100 million for microchip packaging project

PHOENIX — Arizona State University is getting a $100 million federal grant for a program to drive innovation in domestic microchip packaging capabilities.

ASU is partnering with Deca Technologies for SHIELD USA (substrate-based heterogeneous integration enabling leadership demonstration), an initiative that aims to help the U.S. establish itself as global microelectronics leader while strengthening national security.

“This is a critical step for U.S. semiconductor independence, and it is the area of expertise in which we are in direct competition with China to determine who will unlock the future of innovation in semiconductor chip manufacturing,” ASU President Michael Crow said in an announcement last week. “ASU is well prepared with a dynamic partner in Deca Technologies, and we are eager to lead the work that will enable SHIELD USA to play a pivotal role in ensuring the country’s technological and economic future.”

Where does funding for ASU microchip packaging project come from?

The funding comes from the CHIPS R&D National Advanced Packaging Manufacturing Program, which is administered by the U.S. Department of Commerce.

“To bring substrate manufacturing back to the U.S., we need to change the game. More than incremental progress, we need 10-times breakthroughs,” Craig Bishop, chief technology officer of Deca Technologies, said in the announcement. “This is a fantastic example of a university working in close partnership with industry to drive innovation, and we’re excited to partner so closely with ASU and to collaborate with leading industry players in this effort to reestablish technology leadership.”

U.S. Sen. Mark Kelly said the award establishes Arizona as the national leader in advanced microchip packaging.

“Advance packaging is a key component of the microchip manufacturing process, yet most advanced packaging research and manufacturing occurs overseas. This investment builds upon other investments we’re seeing in Arizona to bring advanced packaging back to the United States,” he said in a press release.

Last week, the Biden administration finalized a $6.6 billion investment for the Taiwan Semiconductor Manufacturing Company factories under construction in Phoenix. That funding came from the CHIPS and Science Act, which Kelly helped negotiate.