U.S. Steps Up Semiconductor Game with $18.2M Support for Akash Systems

The U.S. Commerce Department is set to provide an $18.2 million subsidy to Akash Systems, supporting a large-scale semiconductor manufacturing facility in California. This is part of a $121 million investment in collaboration with private investors. The funding aims to enhance the U.S.'s position in the semiconductor supply chain.

The U.S. Commerce Department announced on Wednesday the allocation of $18.2 million in subsidies to Akash Systems for the development of a 40,000-square-foot cleanroom space dedicated to advanced semiconductor manufacturing.

This funding, which comes from the government’s sizable $52.7 billion semiconductor manufacturing and research subsidy program, will be combined with investments from California-based Akash, venture capital firms, and other private investors. The total $121 million investment focuses on the mass production of Diamond Cooling substrates, devices, and systems in West Oakland, California, to boost thermal management in AI-centric data centers.

“This validates our vision and strategy as a U.S. company developing next-generation semiconductor technology,” Akash Systems CEO Felix Ejeckam stated. Meanwhile, Commerce Secretary Gina Raimondo emphasized the significance of this award in maintaining the United States' leadership in the global semiconductor supply chain.

(With inputs from agencies.)