Congresswoman Barbara Lee Applauds More Than $18 Million for Akash Systems Through CHIPS and Science Act
Lee helped secure funding for Black-owned Akash Systems in Oakland. This proposed CHIPS investment could create over 400 new jobs.
Oakland, CA – Congresswoman Barbara Lee (CA-12) today applauded the announcement that the Department of Commerce and Akash Systems have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $18.2 million in proposed direct funding under the CHIPS and Science Act. The preliminary terms offered by the US Department of Commerce could unlock a potential total federal investment of up to $68 million while also helping create over 400 direct manufacturing and construction jobs.
Lee voted for the bipartisan CHIPS and Science Act to usher in a new era of semiconductor manufacturing in the United States and advance U.S. economic and national security. Last year, Lee toured Black-owned Akash Systems in West Oakland to celebrate Black Business Month. This funding will be used to expand Akash System’s manufacturing footprint in the Bay Area, a proposal Lee and Senators Padilla and Feinstein previously presented to Commerce Secretary Gina Raimondo.
Lee also helped convene Akash Systems, their union, and relevant government actors to help increase the initial estimate of funds that Akash Systems had received.
The proposed investment would support the construction of 40,000 square foot cleanroom space within an existing building to transform it into a facility for semiconductor manufacturing. This proposed CHIPS funding, together with funding from Akash, venture capital firms, and other private investors, would support a $121 million investment and enable the company to leverage its intellectual property and experience of developing semiconductor technologies that serve important end markets, such as communications and the defense industrial base, while also creating over 400 direct manufacturing and construction jobs.
“We are witnessing technological innovation, good-paying jobs, and workforce diversity that Akash Systems is bringing to our East Bay communities firsthand,” said Congresswoman Barbara Lee. “This proposed investment only helps develop and further support this critical industry. I am proud that thanks to the CHIPS and Science Act I supported, semiconductor manufacturing technologies have a future here in Oakland.”
“This proposed funding is an important milestone for Akash Systems and for innovative US technology,” said Felix Ejeckam, Akash Systems co-founder and CEO. “As a U.S. company developing next-generation semiconductor technology, this validates our vision and strategy, helping us to deliver cutting-edge solutions that address thermal challenges in today’s high-performance compute and communication systems. We’re excited to drive this advancement forward for the industry and for the future of American technology.”
“Today’s investment supports the build out and scale up of innovative semiconductor manufacturing technologies of the future here in America while utilizing a project labor agreement and strong labor provisions,” said National Economic Advisor Lael Brainard.
CHIPS for America has allocated over $36 billion in proposed funding across 20 states and proposed to invest billions more in research and innovation, which is expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $400 billion in private investments, catalyzed in large part by public investment. CHIPS for America is part of President Biden and Vice President Harris’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce.