On November 13, the US government announced a non-binding preliminary agreement with Akash Systems. Through the CHIPS and Science Act, the Department of Commerce intends to allocate up to US$18.2 million in funding to support Akash's development of next-generation semiconductor technologies, according to Reuters.
The funding will enable the conversion of an existing facility into a 40,000-square-foot cleanroom, equivalent to nine basketball courts, establishing a state-of-the-art semiconductor manufacturing site.
As reported by Reuters, the allocation is part of the US government's US$52.7 billion semiconductor subsidy initiative, which will be supplemented by additional investments from Akash, venture capital firms, and private stakeholders.
The joint US$121 million investment will drive Akash's expansion in West Oakland, California, where the company plans to increase production of semiconductor substrates, devices, and systems using its proprietary diamond cooling technology.
The initiative is expected to help Akash leverage its intellectual property and technical expertise to serve key markets, including communications and defense while creating over 400 direct manufacturing and construction jobs in West Oakland.
The company maintains a distinct technical edge by integrating synthetic diamond substrates with compound semiconductor materials like GaN to improve heat dissipation in high-demand environments.
This proven technology significantly enhances thermal management in semiconductor devices, thereby improving the performance and reliability of microelectronic systems.
Notably, Akash has engineered GPU cooling technology using diamond-based materials specifically for AI data centers, optimizing thermal management to meet the rigorous demands of high-performance computing.
US Secretary of Commerce Gina Raimondo emphasized that the funding for Akash Systems supports America's leadership across every segment of the semiconductor supply chain, as reported by Time.
