SandboxAQ has secured a $500 million award from the U.S. Department of Commerce’s CHIPS Research and Development Office to accelerate the discovery and commercialization of critical semiconductor materials. The funding is aimed at reducing U.S. dependence on foreign-controlled supply chains and strengthening domestic semiconductor manufacturing capabilities.
The award is one of the largest CHIPS Act research investments focused specifically on materials innovation and supply chain resilience.
AI Platform to Accelerate Materials Discovery
SandboxAQ plans to leverage its proprietary ReAQT platform and Large Quantitative Models (LQMs) to identify and develop new materials for semiconductor production. Unlike traditional AI systems trained primarily on text, LQMs are built using principles of physics, chemistry, and biology, enabling them to model real-world scientific processes and accelerate research.
The company believes this approach can dramatically reduce the time required to discover and validate new semiconductor materials, replacing years of trial-and-error laboratory testing with targeted AI-driven simulations.
Focus on Four Critical Technology Areas
The research program will concentrate on four strategic areas essential to chip manufacturing:
- PFAS-free process chemicals to reduce reliance on “forever chemicals”
- Advanced catalysts that improve semiconductor production efficiency
- Rare-earth-free magnets to lessen dependence on foreign mineral supplies
- Next-generation battery systems for semiconductor manufacturing facilities and equipment
Successful technologies will be validated through laboratory testing and then commercialized with U.S.-based manufacturing partners.
Strengthening U.S. Economic and National Security
Federal officials view the initiative as a critical step toward securing domestic access to materials that are currently sourced from vulnerable international supply chains. The program aligns with broader U.S. efforts to strengthen semiconductor independence, improve supply chain resilience, and maintain technological leadership in strategic industries.
As part of the agreement, the Commerce Department will receive a minority non-voting equity stake in SandboxAQ and may earn royalties from future commercial licensing of technologies developed through the program.
Looking Ahead
The award positions SandboxAQ at the forefront of AI-powered materials research and highlights the growing role of advanced AI in semiconductor innovation. If successful, the initiative could help create new domestic sources of critical chipmaking materials, reduce reliance on foreign suppliers, and accelerate the development of next-generation semiconductor technologies across the United States.
