Natcast, the nonprofit created in 2023 to operate the U.S. CHIPS & Science Act’s National Semiconductor Technology Center (NSTC), is laying off most of its staff. Only a small core team will remain to wind down operations. The move follows a sudden withdrawal of funding from the Department of Commerce, reports IEEE Spectrum.
The organization was set up to help with research, prototyping, and workforce development in advanced semiconductor technologies, aiming to strengthen the U.S. domestic supply chain. Natcast’s work included issuing grants (e.g., for designing RF chips using machine learning), defining a national R&D agenda, and creating programs to expand the semiconductor workforce.
On August 25, Commerce Secretary Howard Lutnick announced the withdrawal of a promised US$7.4 billion in funding under Natcast’s contract. He claimed Natcast was not created legally. He also declared that the National Institute of Standards and Technology (NIST) will instead take over operations of the NSTC.
Natcast disputes those claims. In a letter to its nearly 200 members, CEO Deirdre Hanford defended the organization’s structure and oversight. She noted that Natcast had delivered “milestones and deliverables” (119 in total) to the Commerce Department, and emphasized the nonprofit’s industry-driven model and experienced semiconductor staff.
The effects of the shutdown are substantial. Research awardees are uncertain when, or if, their grants will be disbursed. Access to prototyping tools and facilities for startups and university researchers, especially in advanced 300-mm wafer and memory/logic nodes, is now at risk. The loss of Natcast could slow down innovation cycles and raise costs for emerging projects without established infrastructure.
To sum up, what was meant to be a cornerstone of U.S. semiconductor R&D and domestic capability is now facing an abrupt dismantling. The gap Natcast was intended to fill, i.e., reducing time from concept to prototype and supporting smaller players, may go unaddressed, leaving the United States in a weaker position in global semiconductor competition.