Akash Systems secures $18 million for semiconductor plant
Major investment to boost US domestic semiconductor production.
The US Commerce Department has pledged up to $18.2 million in funding to California-based Akash Systems to build a 40,000-square-foot cleanroom facility dedicated to advanced semiconductor manufacturing in West Oakland, California. This funding, part of the $52.7 billion semiconductor subsidy program, will be combined with Akash’s own investments and venture capital to create a $121 million production site for Diamond Cooling substrates and systems designed to enhance thermal management in AI-driven data centres.
Akash CEO Felix Ejeckam highlighted this investment as a significant step in meeting the challenges of high-performance computing. Last year, the company also established a landmark labor neutrality agreement for West Oakland semiconductor production workers in partnership with the IUE-CWA union, covering both construction and production roles.
The announcement comes as the Commerce Department works to finalise semiconductor grants under the 2022 Chips and Science Act, aimed at bolstering US-based chip production to reduce reliance on Asia. Thus far, around 20 companies have been awarded 36 billion in preliminary agreements, including a finalised $123 million deal with Polar Semiconductor to modernise its facility in Minnesota. Additional awards for major chipmakers, including Taiwan Semiconductor Manufacturing Co. and GlobalFoundries, are expected before the administration transition in January.
