New Florida Semiconductor Institute Aims to Make State Global Leader in Microchip Production

An instructor at the Florida Semiconductor Institute works with students in an engineering class. Courtesy University of Florida Herbert Wertheim College of Engineering

The University of Florida recently announced the creation of the Florida Semiconductor Institute (FSI), a campus and state-wide network to establish critical infrastructure in the Sunshine State and make it a world leader in microchip manufacturing during an international chip shortage.

According to FSI, the project aims to lead, advise, and coordinate with Florida on all matters related to semiconductors, or microchips—their design, manufacturing, and implementation.

The institute hopes to make Florida attractive to investors and create more than 10,000 new jobs in the sector.

FSI will utilize UF’s engineering department and faculty to train a new workforce of professionals leading the world in microchip production as the state grows its existing infrastructure.

These public-private partnerships are the central aim of FSI, according to program director Dr. Volker J. Sorger.

UF opened FSI at the start of the 2023 fall semester to combat the ongoing microchip shortage.

According to S&P Global, the microchip industry before COVID operated on a “just-in-time inventory strategy,” where companies met demand without stockpiling reserves.

But the COVID pandemic turned the microchip sector on its head.

Car manufacturers initially scaled down production, anticipating a drop in sales. Then the increase in demand for consumer electronics like game consoles and computers for remote work pushed microchip foundries to dedicate crucial production away from automobile chips, according to S&P Global.

When car companies resumed normal production capacity, the flailing microchip industry could not meet demand.

Congress responded with the bipartisan CHIPS and Science Act of 2022, a $280 billion spending package aimed at bolstering the country’s microchip infrastructure and making it a global competitor with China, according to Forbes.

The bill allocates $52.7 billion in subsidies for United States microchip manufacturing and another $1.5 billion for “technology development for U.S. firms dependent on foreign telecommunications.”

“The goal of the CHIPS Act is to boost U.S. innovation and competitiveness and to reinvigorate domestic semiconductor manufacturing,” a spokesperson from SkyWater, a leading domestic chip foundry, told The Epoch Times.

“The United States has spent much of the last 30 years offshoring semiconductor manufacturing, and we have reached a critical point where re-establishing a strong domestic supply chain is a national priority.”

SkyWater collaborates directly with FSI on workforce development and “advanced packaging” technologies.

SkyWater technicians work with a semiconductor wafer-bonder machine at the company's laboratories. Courtesy SkyWater Technology

Microchips account for the fifth-largest United States export sector and support a quarter of a million jobs directly and another million jobs indirectly, according to Intel—one of the world’s largest microchip manufacturers.

But Intel says the country has fallen behind—in 1990, the United States produced 37 percent of the world’s microchips. In 2021, that number dropped to 12 percent.

Intel will invest more than $43.5 billion to expand the country’s chip manufacturing operations, including creating a $20 billion large-scale foundry operation in Arizona and a $3.5 billion production investment in New Mexico.

However, according to Dr. Sorger, Florida is already a leader in microchip design and “packages,” which are structures that protect chips from damage and also allow semiconductors like CPUs to directly mount to computer motherboards by hand.

Florida has the fifth largest semiconductor workforce in the country, and FSI plans to double that in the next 10 years, Dr. Sorger said.

The Sunshine State is only behind California, Oregon, Arizona, and Texas.

The only thing Florida lacks, he said, is large-volume chip manufacturing foundries.

Florida’s Gov. Ron DeSantis announced on Sept. 19 that Florida will invest $50 million in “cutting-edge workforce development” to assist in growing the state’s microchip manufacturing.

“Florida is quickly becoming the global hub for semiconductor manufacturing in the space and defense industries,” Mr. DeSantis said in a news release.

“By dedicating $50 million to expand our manufacturing capabilities, we are strengthening Florida’s supply chain and ensuring Florida maintains a strong economy that supports Florida families.”

Florida is also third in the nation for semiconductor establishments, according to Secretary of FloridaCommerce J. Alex Kelly.

This figure accounts for the whole microchip sector—particularly research and design—not just production and manufacturing.

An FSI student tests a new semiconductor prototype. Courtesy of University of Florida Herbert Wertheim College of Engineering

But expanding the microchip pipeline is no simple task, according to Dr. Sorger.

While Florida is already a leader in Department of Defense microchip technology, in part because of the military and NASA presence in the state, growth is predicated on the labor involved, he said.

Much of microchip manufacturing relies on manual labor that can and should be automated, according to Dr. Sorger.

Once companies create technology to automate the rest of the semiconductor assembly line, it will be much easier for Florida and the United States to dominate microchip production.

China and Taiwan are the international leaders in semiconductor exports.

Dr. Sorger said the political differences between the United States and China give the United States a unique advantage in pushing to the front of the global supply chain.

“The freedom that this country offers intrinsically fosters creativity, period,” he said. “If it’s top down, you just do what you’re told, and you’re stuck in your ways.”

This spirit of free creativity drives many of the technological advances seen in the semiconductor industry, Dr. Sorger said.

He is confident the United States can utilize this advantage to out-engineer countries like China, Taiwan, and Japan.

But the United States cannot achieve this goal in two or three years, he said.

“We’re talking about right now a vision of 10 years. But in 10 years, if you asked me do you see the United States becoming a leader in manufacturing—I’d say absolutely.”