The Commerce Department has announced plans for a $1.6 billion advanced chip R&D competition. This CHIPS for America program will make awards of around $150 million each to promote private sector investment in five research areas.

The money will come through the 2022 Chips and Science Act in an effort to accelerate the US’s expertise in advanced packaging. Advanced packaging technology is in high demand now with advances in semiconductor technology powered by the growth of artificial intelligence applications and microelectronics. Currently, this market is dominated by Asian countries, and the US is estimated to control just 3% of the world’s capacity.

The US government outlined its vision for boosting its advanced chip capabilities in the National Advanced Packaging Manufacturing Program (NAPMP), which was unveiled last year. It has already handed out financial incentives to companies such as Intel , SK Hynix, Amkor and Samsung to boost the domestic advanced packaging sector.

With this new announcement the US Commerce Department is targeting five R&D areas:

• Equipment, tools, processes, and process integration
• Power delivery and thermal management
• Connector technology, including photonics and radio frequency (RF)
• Chiplets ecosystem
• Co-design/electronic design automation (EDA)

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

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Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.