The U.S. Department of Commerce has invested up to $18.2 million in Akash Systems for the construction of a new semiconductor manufacturing facility.
The department said Wednesday it signed a non-binding preliminary memorandum of terms with the Oakland-based startup to turn an existing building’s 40,000-square-foot cleanroom space into a new manufacturing facility. The proposed project will be funded under the CHIPS and Science Act. It will also receive funding from Akash, venture capital firms and other private investors.
Akash Systems’ New Semiconductor Facility
The new semiconductor facility will be utilized for manufacturing diamond cooling substrates, devices and systems at scale. It will be constructed in West Oakland, California and will cost a total of $121 million. The proposed project is expected to generate up to 400 new jobs in direct manufacturing and construction.
Akash Systems will utilize its understanding of semiconductor technologies, particularly its own innovations, in serving crucial end markets including defense and communications. The company specializes in integrating synthetic diamond substrates with compound semiconductor materials like gallium nitride.
What Is Diamond Cooling?
Diamond cooling technology is an emerging technology developed by Akash. It is used to enhance the thermal performance of semiconductors, especially in challenging environments. It helps manage the heat dissipation of semiconductor devices in high-performance systems.
Secretary of Commerce Gina Raimondo, stated, “Through this proposed investment in Akash, we are taking a critical step forward to fulfill that mission. With the support of this proposed funding, the Biden-Harris Administration is helping to accelerate innovation, advance U.S. technology leadership in semiconductor manufacturing and spur good-paying jobs and increased economic opportunities.”
