Commerce Department Cancels $23.8 Million Grant for Vermont Semiconductor Hub
The U.S. Department of Commerce has rescinded a significant $23.8 million grant intended for advancing semiconductor research and manufacturing in Vermont. This funding was earmarked for the Vermont Gallium Nitride Tech Hub, a consortium involving the University of Vermont, the State of Vermont, and GlobalFoundries, among other private entities. This initiative was part of President Biden’s Regional Technological and Innovation Hubs program, established under the CHIPS and Science Act of 2022, aimed at stimulating technological growth in underrepresented areas.
Commerce Secretary Howard Lutnick announced the decision, citing that the prior administration’s granting process was "rushed, opaque, and unfair." He indicated that previous awards, inclusive of Vermont’s, were initiated even though the requisite funds had not been secured. Lutnick emphasized plans for revamping the Tech Hubs program and expressed intentions to restart the grant selection process, with potential funding reallocation as early as 2026.
According to Doug Merrill, UVM’s regional innovation officer, the grant would have supported three ongoing Vermont projects focusing on gallium nitride semiconductors, which promise enhanced efficiency over traditional silicon. These projects included a publicly accessible lab for testing, a software design center, and a workforce development initiative.
Despite the cancellation, Merrill confirmed that no funds had been received or spent, as the consortium had already anticipated delays in finalizing the grant. He expressed optimism about using alternative funding sources to advance their initiatives and plans to reapply for federal funds in the future. “We were competitive in the last round, and we expect to be even more competitive in the next,” he stated. The CHIPS and Science Act aims to boost domestic semiconductor manufacturing and technological research across the U.S.
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