The CHIPS Act and its Impact on the Semiconductor Industry and Analytical Labs

Major disruptions in the restart and the ensuing supply chain issues and critical shortages in the wake of COVID led the US Congress to finally formulate a program to help stabilize the semiconductor industry. Direct aid programs by several States served as a model for Federal action, and the US CHIPS Act was signed into law in 2022. By early 2024 the basic plans for corporate onshoring/restructuring and an outline for the National Center for the Advancement of Semiconductor Technology (Natcast) were in place. By the closeout of the last administration at end of January, 2025, most of the original funding allocation had been pledged, and a good portion had gone to contract. Multiple research grants and adjunct programs were initiated, along with sites and preliminary structure for the National Semiconductor Technology Center and National Advanced Packaging Manufacturing Program announced. Despite new questions about the future of spending what Congress approved, programs do continue to move forward.

While all of the above is indeed good news, ASM’s EDFAS has expressed deep concerns that analytical techniques have not kept pace with rapidly advancing microchip design and assembly. After 2+ years of trying to convey this, the new Natcast R&D director has asked for a comprehensive Physical Failure Analysis and Electrical Fault Isolation development proposal, and initial documents were submitted this April. This could result in an organized national effort to improve analytical tools, techniques, and the incorporation of AI into the process.