A $500 million research and development award from the Department of Commerce will fuel SandboxAQ’s efforts to accelerate the discovery of new materials essential to the semiconductor industry. The funding, secured through the CHIPS and Science Act, specifically targets bottlenecks in the supply chain, moving beyond chip manufacturing itself to address the foundational materials that underpin it. SandboxAQ’s platform aims to compress materials development timelines by combining physics-based simulation with artificial intelligence, focusing on areas like replacements for 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, authorized through the CHIPS and Science Act, will accelerate the deployment of an artificial intelligence-driven platform designed to overcome critical materials bottlenecks and reduce reliance on vulnerable supply chains. SandboxAQ’s approach compresses materials development timelines by integrating first-principles simulations with AI-powered optimization and high-throughput screening of potential candidates. A key focus of this initiative is addressing environmental concerns within the semiconductor supply chain, specifically targeting replacements for PFAS. The platform will screen for alternatives in heat-transfer, lubricants, and insulating coatings, aiming to match or exceed current performance without introducing toxicity or bioaccumulation risks.
Beyond PFAS, the funding will also support the development of domestically sourced rare earth-free magnets, crucial for semiconductor manufacturing equipment where China currently controls over 90% of global production. The Department of Commerce stated that establishing new rare earth alternatives can dramatically reduce domestic exposure to foreign supply chain risk. The award prioritizes novel battery chemistries for uninterrupted power backup systems in semiconductor fabrication facilities, seeking alternatives to lithium and cobalt sourced primarily from China. Bill Fraunhofer, Executive Director of Semiconductor Investment and Innovation, added that by investing in AI-enabled materials discovery, we 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.
The CHIPS Research and Development Office is taking a targeted approach to strengthen the domestic semiconductor industry by supporting the development of new materials solutions to critical input constraints.
Bill Fraunhofer, Executive Director of Semiconductor Investment and Innovation
SandboxAQ’s ReAQT Platform & LQMs Target PFAS Replacements
The push to onshore semiconductor manufacturing, fueled by the CHIPS and Science Act, is extending beyond simply building more fabrication facilities; a substantial $500 million research and development award to SandboxAQ signals a deeper investment in the foundational materials science underpinning the industry. This funding isn’t merely about increasing chip production, but about fundamentally reshaping the supply chain for the materials used to create them. SandboxAQ’s platform, designed to shorten materials development timelines, will focus on several critical bottlenecks, including the replacement of PFAS currently used in semiconductor manufacturing processes. Specifically, the company will leverage its ReAQT platform and Liquid Quantum Models (LQMs) to screen candidate materials and identify PFAS-free alternatives that match or exceed the performance of existing chemicals, with the aim of expanding domestically-sourced options. SandboxAQ will also explore novel battery chemistries for backup power systems within semiconductor facilities, moving away from reliance on critical minerals like lithium and cobalt primarily sourced from China. The Department will receive a minority equity stake in SandboxAQ, further aligning incentives for success and benefit to U.S. taxpayers.
President Trump is committed to strengthening America’s semiconductor supply chain and ensuring national security.
Rare Earth Alternatives & Battery Chemistries for Supply Chain Resilience
Beyond increasing chip production, the funding targets foundational material science, specifically focusing on areas where supply chains are vulnerable to geopolitical disruption. A key area of investigation involves replacements for PFAS currently used in semiconductor manufacturing; SandboxAQ’s platform will screen candidate materials to identify PFAS-free alternatives that maintain or exceed existing performance standards, aiming to expand domestically-sourced chemical options. The company’s efforts extend to reducing reliance on China’s dominance in rare earth magnet production, which currently exceeds 90% of global supply.
China controls more than 90% of global production of neodymium-based permanent magnets, which are critical inputs to semiconductor manufacturing equipment.
