$500M CHIPS Award Fuels SandboxAQ’s AI-Driven Materials Discovery

A $500 million research and development award from the Department of Commerce will fuel SandboxAQ’s efforts to accelerate the discovery of new materials vital to the semiconductor industry. The funding, secured through the CHIPS and Science Act, specifically targets bottlenecks in the supply chain, moving beyond chip manufacturing to address the foundational materials themselves. SandboxAQ’s platform aims to compress materials development timelines by combining physics-based simulation with artificial intelligence, focusing on areas like alternatives to PFAS, rare earth-free magnets, and novel battery chemistries for semiconductor facility backup power. “President Trump is committed to strengthening America’s semiconductor supply chain and ensuring national security,” said Secretary of Commerce Howard Lutnick, emphasizing the award’s role in reducing reliance on foreign-controlled materials.

$500 Million CHIPS Award Fuels AI-Driven Materials Discovery

This substantial funding will propel SandboxAQ’s artificial intelligence-driven platform, designed to shorten the traditionally lengthy process of materials discovery and address vulnerabilities within the semiconductor supply chain. The initiative extends to the supporting infrastructure and essential process chemicals. Specifically, the platform will target replacements for per- and polyfluoroalkyl substances (PFAS) currently used in semiconductor manufacturing; SandboxAQ intends to leverage its ReAQT platform and LQMs to screen candidate materials and identify PFAS-free alternatives. The scope of materials research also includes developing catalysts for semiconductor fabrication and advanced solid-state or hybrid energy storage solutions, mitigating U.S. vulnerability to disruptions in the supply of minerals like lithium and cobalt.

Bill Fraunhofer, Executive Director of Semiconductor Investment and Innovation, stated that by investing in AI-enabled materials discovery, they are advancing a capability that can identify novel chemistries and molecules for the semiconductor ecosystem, accelerate development timelines, and improve U.S. supply chain resilience. As part of the agreement, the Department of Commerce will receive a minority equity stake in SandboxAQ, further benefiting U.S. taxpayers.

SandboxAQ’s ReAQT Platform & LQMs Target PFAS Replacements

This investment addresses vulnerabilities within the supply chain at a molecular level, with specific attention paid to replacing problematic substances like PFAS. SandboxAQ’s approach centers on its ReAQT platform and Liquid Quantum Models (LQMs), designed to accelerate materials discovery by integrating physics-based simulations with artificial intelligence and high-throughput screening of potential candidates. The platform’s capabilities extend to several critical areas beyond PFAS alternatives, including the development of catalysts for semiconductor fabrication and rare earth-free magnets. China currently dominates over 90% of global neodymium-based permanent magnet production, essential for semiconductor manufacturing equipment; establishing domestic alternatives is a key objective. The company is targeting novel battery chemistries for backup power systems within semiconductor facilities, aiming to lessen reliance on minerals like lithium and cobalt predominantly sourced from overseas.

This investment extends beyond chip fabrication itself to the foundational materials underpinning the entire process, with a specific emphasis on reducing reliance on foreign-controlled resources. The company’s platform will prioritize discovering rare earth-free magnetic materials utilizing domestically sourced elements, aiming to reduce exposure to foreign supply chain risks. This proactive approach seeks to mitigate U.S. vulnerability to disruptions, developing alternative battery solutions manufactured from domestically-accessible materials.