This week, the U.S. Department of State, Bureau of Economic and Business Affairs, awarded a $13.8 million cooperative agreement (CA) to Arizona State University (ASU) under the International Technology Security and Innovation (ITSI) Fund, created by the CHIPS Act of 2022. This new initiative will bolster the assembly, testing, and packaging (ATP) capabilities in ITSI partner countries in the Americas and Indo-Pacific, enhancing a resilient supply chain for U.S. semiconductor manufacturers.
This multi-regional initiative, led by State and ASU's Ira A. Fulton Schools of Engineering, marks the beginning of the next phase of the Department's ITSI-related efforts, builds on the ongoing ecosystem reviews, and will contribute to the growth and diversification of the global semiconductor ecosystem. This initiative will help our ITSI partners create the investment environment to support the semiconductor industry and will bolster workforce capacity to create a pipeline of new talent. Through high-quality workforce development programs, this initiative builds workforce skills partners need to keep up with advancing technology, secure meaningful employment, and contribute to economic growth and prosperity. The initiative will also allow US semiconductor manufacturers to leverage improved supply chains and labor connections from around the world.
In August 2022, President Biden signed the CHIPS Act of 2022, a U.S. law that appropriated new funding to boost domestic manufacturing and research of semiconductors in the United States. The CHIPS Act of 2022 created the ITSI Fund, which provides the U.S. Department of State with $500 million ($100 million per year over five years, starting in Fiscal Year 2023) to promote the development and adoption of secure and trustworthy telecommunications networks and ensure semiconductor supply chain security and diversification through new programs and initiatives with our allies and partners.
