Small Business R&D Gets Exciting Opportunity: Commerce Department Unveils $54 Million Funding for Semiconductor Metrology

• Commerce Department announces $54 million funding opportunity for Small Business R&D in Semiconductor Metrology
• Funding aims to improve U.S. leadership in computer chip manufacturing by addressing production defects and increasing yields
• National Institute of Standards and Technology identifies challenges and priority areas in semiconductor metrology
• SBIR grant funding available for small businesses developing breakthrough advances in material characterization and manufacturing capabilities
• Large federal funding under CHIPS and Science Act allocated to major chip manufacturing companies; efforts to attract investments from overseas chipmakers

Small Business R&D: Commerce Department’s $54 Million Funding Opportunity

In a significant move aimed at advancing measurement technologies critical to semiconductor production, the U.S. Department of Commerce recently announced a funding opportunity earmarking $54 million under the CHIPS and Science Act. This funding, made available through the Small Business Innovation Research (SBIR) program, is designed to drive improvements in computer chip manufacturing by addressing production defects and enhancing production yields.

Background: Semiconductor Metrology Challenges and Opportunities

Back in August 2022, shortly after President Joe Biden signed the CHIPS and Science Act into law, the National Institute of Standards and Technology (NIST) highlighted seven major challenges in semiconductor metrology. This field involves using measurement science to ensure the flawless manufacturing of complex computing chips across numerous production stages. Subsequently, in June 2023, NIST identified 10 priority focus areas in semiconductor metrology, emphasizing supply chain assurance, interoperability standards, and metrology for nanostructured materials and 3D structures.

SBIR Grant Funded Projects and Focus Areas

The recent Notice of Funding Opportunity (NOFO) from the Biden Administration specifically targets small businesses engaged in developing products or services for the microelectronics market. SBIR grant funding is set to support companies pioneering breakthroughs in material characterization, instrumentation, testing, and manufacturing capabilities. NIST, the administering body for the SBIR funding program, aims to finance projects that bolster U.S. leadership in metrology standards, introduce innovative manufacturing metrologies, develop provenance technologies, and establish R&D testbeds for metrology.

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Implications and Future Outlook for Small Business R&D

While the recent NOFO primarily focuses on semiconductor metrology projects by small businesses, a significant portion of federal funding allocated under the CHIPS and Science Act has already been directed towards major players in the chip manufacturing industry. For instance, the Commerce Department recently entered into an agreement with Intel Corporation, making the semiconductor giant eligible for substantial funding to build or upgrade chip fabrication facilities in the U.S. Similar arrangements have been made with other industry leaders like Taiwan Semiconductor Manufacturing Corporation (TSMC) and Samsung, signaling a broader effort to bolster domestic semiconductor production.

The current funding opportunity presents a unique chance for small businesses to drive innovation in semiconductor metrology and contribute to the advancement of U.S. leadership in chip manufacturing. By addressing critical challenges and focusing on key focus areas, these businesses have the potential to make significant strides in enhancing measurement technologies vital to the semiconductor industry’s growth and competitiveness.