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US Bolsters Defense with $49M Semiconductor Investment

Economic Boost in Defense Technology

The US Department of Defense has announced a significant investment in the semiconductor sector, allocating $49 million in contracts to Micross Components and the government of Osceola County, Florida. This move is part of a broader effort to revitalize the US’s semiconductor advanced packaging manufacturing capability.

RESHAPE Strategy: Revitalization and Security

Under the RESHAPE initiative (Re-shore Ecosystem for Secure Heterogeneous Advanced Packaged Electronics) unveiled last year, the Department of Defense aims to strengthen the production of advanced 2.5D and 3D packaging solutions. This strategy focuses not only on increasing production but also on securing “back-end-of-line” processes for 300mm wafer diameter capabilities with multiple suppliers. The primary goal is to bolster the national supply chain and mitigate risks associated with dependence on foreign suppliers in a critical sector for national security.

Impact and Future Prospects

The investment in Micross Components, which received $134.3 million last year, is part of a long-term investment program that saw nearly $700 million in allocations in 2023 through the Innovation, Capability, and Modernization (ICAM) office. According to Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy, revitalizing the US semiconductor manufacturing ecosystem is crucial not only for weapon system development but also for enabling lower volume commercial markets to advance their products and maintain these critical manufacturing capabilities.