SandboxAQ has been awarded $500 million by the Department of Commerce’s CHIPS Research and Development Office to bolster U.S. production of essential semiconductor materials. The funding aims to reduce reliance on foreign suppliers by advancing AI-driven research in key chemical and material sectors critical to semiconductor manufacturing.

The company plans to focus on developing Per- and Polyfluoroalkyl substances (PFAS)-free process chemicals, rare earth-free magnets, catalysts, and battery technologies. By leveraging its AI simulation platform, SandboxAQ seeks to shorten the timeline for discovering and validating new molecules, replacing decades of traditional experimental processes with rapid computational screening.

SandboxAQ will prioritize moving successful innovations into manufacturing by partnering with U.S. industrial firms. This effort supports broader government strategies to secure supply chains and enhance national economic and security interests amid global competition over semiconductor materials. The company’s AI platforms, including ReAQT and large quantitative models (LQMs), employ physics, biology, and chemistry principles instead of language-based datasets to accelerate material discovery.

This CHIPS Act award builds on SandboxAQ’s expanding federal portfolio, which includes contracts for post-quantum cryptography with the Department of War CIO, involvement in quantum sensing projects supporting GPS-independent navigation, and AI-powered battery analytics for the U.S. Army. Commerce officials emphasize the initiative’s relevance to current efforts to strengthen domestic semiconductor supply networks.