The Biden-Harris Administration has announced a major investment in the U.S. semiconductor industry with the creation of the SMART USA (Semiconductor Manufacturing and Advanced Research with Twins USA) Institute. The new research center, backed by a combined $1 billion investment, will be headquartered in North Carolina and focus on advancing digital twin technology to improve domestic semiconductor manufacturing. The U.S. Department of Commerce is entering negotiations to provide $285 million in funding from the CHIPS and Science Act of 2022, while additional funding will come from private and academic partners.

The SMART USA Institute will join an existing network of 17 institutes established to enhance U.S. manufacturing competitiveness. It aims to address key challenges in semiconductor production by developing, validating, and applying digital twins—virtual models of physical components that allow for real-time testing and optimization. These efforts are expected to cut the cost and time of chip development, reduce greenhouse gas emissions associated with chip manufacturing by 25% within five years, and train over 100,000 students and workers in digital twin technology.

U.S. Secretary of Commerce Gina Raimondo emphasized the importance of the initiative, stating, “America’s technological leadership depends on collaboration with the best and brightest worldwide. With the SMART USA Institute, we are opening new avenues to safeguard U.S. national security and drive technological innovation."

The project is being spearheaded by the Semiconductor Research Corp. (SRC), a leading consortium with deep ties to North Carolina’s research ecosystem and decades of experience in uniting industry, government, and academia. SMART USA will involve a diverse range of stakeholders, including semiconductor giants like AMD, IBM, Intel, Micron Technology, and Texas Instruments, as well as renowned academic institutions such as Georgia Tech, Purdue University, and the State University of New York.

Dr. Todd Younkin, Executive Director of SMART USA, emphasized the collaborative nature of the initiative: "This designation as the CHIPS Manufacturing USA institute reaffirms our dedication to fostering collaboration and excellence across the semiconductor ecosystem. Teaming is the cornerstone of our strategy, and it is through this united effort that we will achieve our ambitious goals."

The institute's mission includes building a national open-source digital backbone for semiconductor manufacturing, which will improve design efficiency and bring chip production back to American soil. It will also focus on digital twin workforce training, enabling a new generation of digitally skilled professionals and expanding access to underserved communities.

SRC’s Vice President of Business Development, David Henshall, highlighted the strategic importance of the SMART USA Institute: "These efforts will strengthen U.S. global competitiveness, ensuring our country benefits from American innovation at scale."

The funding for the SMART USA Institute is part of the larger CHIPS and Science Act, which allocated $53 billion to bolster domestic semiconductor production and innovation. The selection of SMART USA is pending final contract negotiations, but the initiative has already garnered broad support from over 150 organizations committed to advancing the U.S. semiconductor industry.

The new institute will play a crucial role in developing digital twin technology across the semiconductor supply chain, enhancing the United States’ ability to respond to supply chain disruptions, optimize processes, and maintain a competitive edge in the global tech market.