U.S. awards SandboxAQ $500M to accelerate AI-driven semiconductor materials discovery

The U.S. Department of Commerce’s CHIPS Research & Development Office announced a definitive agreement with SandboxAQ for a $500 million award under the CHIPS and Science Act. The award funds AI-driven materials discovery to address critical semiconductor supply chain bottlenecks, including alternatives to PFAS “forever chemicals,” advanced catalysts, rare earth-free magnets, and novel battery chemistries for semiconductor facility backup power systems.

SandboxAQ’s platform integrates first-principles physics and chemistry simulation, AI-driven optimization, high-throughput screening of millions of candidates, and targeted experimental validation. The company plans to partner with American manufacturing partners to scale breakthrough results into domestic production.

The agreement prioritizes four programmatic areas: developing PFAS-free process chemicals for semiconductor manufacturing, next-generation high-purity catalysts to reduce foreign supplier control, rare earth-free magnetic materials to mitigate reliance on China-dominated supply chains, and advanced battery chemistries using domestically accessible materials.

The Department of Commerce will receive a minority, non-controlling equity stake in SandboxAQ as part of the award. The CHIPS Research and Development Office continues to solicit proposals for research, prototyping, and commercial solutions under announcement 2025-NIST-CHIPS-CRDO-01 at grants.gov.