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SEPTEMBER 2023 I SMT007 MAGAZINE 53 very likely to continue utilizing the global out- sourcing model to Asia that has developed over the past 25 years. For defense applications, expect some improved capabilities for North American- based substrates, packaging, and final system assembly, but also expect continued discus- sions and partnerships with U.S. allied nations such as Japan, South Korea, and Taiwan to pro- vide trusted high-quality supply of substrates and package assembly. U.S. CHIPS Act 9902 Incentives Program investments are largely geared toward near-term SiC-based semiconductors for microelectronic applications (e.g., CPUs, GPUs, memory). GaN and SiC-based semiconductor development for power electronics is a focus for longer-term U.S. CHIPS Act 9906 R&D investments, along with next generation Si-based R&D. Beyond these observations, it is imperative the CHIPS Act enables a broader U.S. semi- conductor ecosystem supporting mission crit- ical systems. To claim success, the objective of the CHIPS Act needs to support a robust, resilient, sustainable (over the longer-term) domestic ecosystem—enabling not just semi- conductor fabrication, but also minimum via- ble capability for substrates, package assem- bly, and final system assembly. IPC continues to work with industry and policy makers to adopt a "silicon-to-systems" approach building "regional plus global" sup- ply chains, where investments in semicon- ductors are supported by additional critical investments in component packaging includ- ing substrate fabrication, and component assembly and test. In addition, high density interconnect (HDI) printed circuit boards, and complex integrated systems require investment. All these elements are critical, not just silicon. SMT007 References 1. To learn more about the IAC, visit nist.gov/chips/ industrial-advisory-committee. Figure 2.