SandboxAQ Secures $500 Million CHIPS Award from U.S. Commerce to Accelerate PFAS-Free Semiconductor and New Battery Material Discovery with AI

June 28, 2026

SandboxAQ Press Room USA

Overview

SandboxAQ has secured a $500 million grant agreement from the U.S. Department of Commerce’s CHIPS R&D Office. This significant funding is designated to accelerate the development and deployment of an AI-driven materials discovery platform, addressing critical material bottlenecks and supply chain risks for essential components like PFAS-free process chemicals, catalysts, rare-earth-free magnets, and novel battery chemistries crucial for semiconductor manufacturing. Leveraging physics-based AI, SandboxAQ aims to virtually screen millions of candidate materials, translating robust findings into domestic manufacturing and commercialization.

In Depth

Key Findings

SandboxAQ has secured a substantial $500 million grant agreement from the U.S. Department of Commerce’s CHIPS R&D Office. This funding is specifically allocated to accelerate the development and deployment of an AI-driven materials discovery platform, targeting critical material bottlenecks and supply chain risks for essential components such as PFAS-free process chemicals, catalysts, rare-earth-free magnets, and novel battery chemistries vital for semiconductor manufacturing. This represents a crucial step towards bolstering the independence and competitiveness of the U.S. semiconductor industry.

Technical / Clinical Details

SandboxAQ leverages its proprietary platform, built upon quantum physics-inspired AI technology, to address challenges in materials science. This platform combines physics-based AI with high-performance computing to rapidly screen millions of candidate materials in a virtual environment, predicting their properties. Compared to traditional experimental approaches, this dramatically reduces the time and cost associated with material development, thereby accelerating the innovation cycle.

Specific goals include:

PFAS-Free Process Chemicals: PFAS (per- and polyfluoroalkyl substances), widely used in semiconductor manufacturing, are facing increased regulations due to environmental and health concerns. SandboxAQ aims for rapid discovery of safe and high-performing alternatives.
Catalysts: Accelerating the development of new catalysts that enhance manufacturing process efficiency and enable more environmentally friendly chemical reactions.
Rare-Earth-Free Magnets: Exploring high-performance magnetic materials that do not rely on specific rare-earth elements, which pose supply risks.
New Battery Chemistries: Discovering novel electrolytes and electrode materials to improve the energy density, safety, and cycle life of next-generation batteries.

These materials will be designed and optimized through AI-driven simulations and subsequently commercialized via domestic manufacturing partnerships. This approach aims to establish technological leadership for the U.S. in both materials science and manufacturing.

Background & Context

The U.S. CHIPS and Science Act aims to strengthen the domestic semiconductor industry and enhance supply chain resilience. The supply of specialized materials crucial for semiconductor manufacturing processes, in particular, has been identified as vulnerable due to geopolitical risks and evolving environmental regulations. The reduction of ‘forever chemicals’ like PFAS is also an urgent environmental imperative. The $500 million grant secured by SandboxAQ is a critical investment to powerfully drive the domestic development and production of these strategic materials, ensuring U.S. economic security and technological leadership. AI-driven materials discovery is positioned as one of the most promising approaches to resolve these challenges.

Strategic Significance & Outlook

This $500 million grant will enable SandboxAQ to significantly scale up its AI-driven materials discovery platform. Over the next few years, the company plans to virtually screen millions of material candidates, identify promising new materials, and transition them to commercial production through domestic partnerships. The outcomes are expected to have ripple effects across a wide range of sectors beyond semiconductors, including clean energy, defense, and transportation. The realization of PFAS-free technologies and rare-earth-free magnets will have a major impact on both environmental protection and resource security, accelerating technological innovation towards a sustainable future. SandboxAQ’s efforts are poised to usher in a new era of materials innovation in the United States.

Source: https://www.sandboxaq.com/press/sandboxaq-us-department-of-commerce-500-million-chips-award

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