Dive Brief:
- The Biden-Harris administration offered Akash Systems up to $18.2 million in proposed CHIPS and Science Act direct funding, the National Institute of Standards and Technology announced on Wednesday.
- The money would support the construction of a 40,000-square-foot cleanroom space within an existing building and transform it into a facility for semiconductor manufacturing in West Oakland, California. The project is expected to create over 400 manufacturing and construction jobs.
- The satellite technology manufacturer, which now makes chip cooling technology, is also planning on receiving $50 million in combined federal and California state tax credits, adding the total aid to $68 million, according to the company’s press release.
Dive Insight:
The CHIPS funding is part of Akash’s total $121 million investment in the project.
Akash’s facility will focus on diamond cooling technology — which combines synthetic diamond with materials like gallium nitride — as it aims to improve heat dissipation in high-performance semiconductors. The technology enhances the reliability and performance of microelectronics and is supposed to improve cooling in AI-focused data centers as well, the release stated.
For the company’s facility workforce development efforts, Akash will operate under a project labor agreement, prioritizing hiring from underserved communities and unions. It will also continue its ongoing partnerships with Berkeley City College, Laney College and Northeastern University Oakland, according to the release.
Akash plans to apply for the advanced manufacturing investment credit to cover up to 25% of qualified capital expenditures.
The manufacturer has been under consideration for the CHIPS award for a year now, according to a November 2023 press release. The startup is aiming to broaden its business strategy with the funding and move into new markets.
“Presently, our primary focus has been space; however, with this funding, our capabilities will expand, allowing us to venture into promising and fast-growing markets like EV, autonomous vehicles, electric grid power, solar cell markets, AI chips, and wireless circuits,” the release stated.
The Commerce Department is trying to finalize major awards before President-elect Donald Trump takes office in January. Trump publicly criticized the legislation during his campaign, saying he would curtail federal subsidies and impose tariffs instead.
This fall, CHIPS for America allocated over $1.2 billion in funding across seven projects. The CHIPS Act has awarded over $36 billion in proposed funding across 20 states since 2022, according to the government release.
Glass maker Corning and power module manufacturer Powerex were the latest companies to receive CHIPS funding. The former was awarded $32 million for a factory in New York and the latter earned $3 million for a facility in Pennsylvania.
