The U.S. Department of Commerce recently announced a Notice of Intent (NOI) to launch a competition to accelerate the development of sustainable semiconductor materials and processes using artificial intelligence (AI).
The initiative, part of the CHIPS for America program, comes with up to $100 million in funding for university-led, industry-informed collaborations focused on AI-powered autonomous experimentation (AI/AE). The goal is to develop innovative semiconductor materials and manufacturing processes that are both commercially competitive and environmentally sustainable.
According to a report by McKinsey, the global semiconductor market was valued at approximately $600 billion in 2022 and is expected to grow to over $1 trillion by 2030. Despite this growth, the U.S. share of global semiconductor manufacturing has dropped from 37% in 1990 to around 12% today, according to the Semiconductor Industry Association (SIA). This decline has increased reliance on foreign supply chains, particularly in Asia, which produces around 75% of the world’s semiconductors.
The CHIPS for America program aims to bolster domestic semiconductor production by addressing technological and environmental challenges. The U.S. seeks to improve its global standing by integrating AI into material development, making semiconductor chip manufacturing more sustainable.
AI/AE is emerging as a crucial tool in reducing the time and resources required to develop new semiconductor materials. Typically, new materials take several years to be production-ready. The combination of automated synthesis and characterization tools, guided by AI algorithms, allows researchers to optimize processes quickly and efficiently. This technology can help overcome some of the industry’s most pressing sustainability challenges, such as reducing water usage, minimizing chemical waste, and lowering energy consumption during chip production.
The CHIPS for America initiative focuses on using AI to shorten development timelines and reduce the environmental footprint of semiconductor manufacturing. This is critical as the semiconductor industry is among the most resource-intensive, consuming large amounts of water and energy.
This initiative’s $100 million funding will support university-led collaborations involving industry, national laboratories, and other stakeholders. The focus on academic institutions, particularly emerging research institutions, is intended to expand universities’ participation in semiconductor research and development (R&D). This fosters innovation and contributes to workforce development in the semiconductor sector.
According to the U.S. Bureau of Labor Statistics, the semiconductor industry employed roughly 250,000 workers as of 2023. However, the industry faces a significant skills gap, particularly in fields related to advanced manufacturing and AI. The CHIPS for America initiative seeks to address this by fostering collaboration between universities and industry, ensuring that the next generation of engineers and researchers is prepared to meet the demands of modern semiconductor manufacturing.
The semiconductor industry’s environmental impact is a growing concern. According to a report from Applied Materials, semiconductor manufacturing consumes around 10,000 gallons of water per day for a typical chip fabrication facility. In addition, producing semiconductors generates significant amounts of hazardous waste, including chemicals such as hydrofluoric and sulfuric acid.
Integrating AI into semiconductor R&D offers a pathway to mitigate these environmental impacts. AI can be used to optimize resource consumption in real-time, reduce waste, and even design more efficient manufacturing processes that require less energy. By developing new, more sustainable materials, the U.S. can reduce its dependence on scarce resources and align its semiconductor production with global sustainability goals.
The anticipated Notice of Funding Opportunity, expected later this year, will formalize the details of the competition. This initiative represents a significant opportunity for the U.S. semiconductor industry to lead in technological innovation and sustainability. By leveraging AI, the U.S. can address the twin challenges of environmental sustainability and global competitiveness, positioning the country as a leader in the next generation of semiconductor manufacturing.
