SandboxAQ Receives $500M CHIPS Act Award for AI-Driven Semiconductors

SandboxAQ lands major federal funding for chip innovation

SandboxAQ has secured a $500 million award from the Commerce Department's CHIPS program to strengthen domestic semiconductor manufacturing capabilities through artificial intelligence applications, according to details first reported by Fox Business.

CEO Jack Hidary outlined the company's approach during an appearance on Mornings with Maria, explaining how SandboxAQ plans to deploy AI across multiple dimensions of chip production. The funding will support efforts to identify and develop alternative materials that reduce dependence on rare earth minerals, a strategic priority as supply chain vulnerabilities continue to challenge the semiconductor industry.

AI applications across the manufacturing stack

The company's strategy centers on using quantitative AI models to accelerate chip development processes. Hidary described applications ranging from critical mineral exploration to creating new material formulations that bypass traditional rare earth dependencies.

SandboxAQ is also integrating its quantitative AI capabilities with large language models, specifically mentioning Anthropic's Claude, for drug discovery applications. This cross-domain approach suggests the company views its AI platform as applicable beyond semiconductor manufacturing alone.

Why it matters

The half-billion-dollar award represents one of the larger CHIPS Act disbursements aimed at reshoring advanced manufacturing capabilities. By focusing on AI-driven materials science rather than traditional fabrication expansion, SandboxAQ's approach addresses a different bottleneck in the semiconductor supply chain—the availability of critical inputs and the speed of materials innovation. Success in developing rare-earth alternatives could reduce geopolitical risk in chip supply chains while accelerating the design-to-production timeline for next-generation semiconductors.

CHIPS program deployment continues

The Commerce Department has been steadily allocating funds from the CHIPS and Science Act, which authorized tens of billions in subsidies and incentives to rebuild U.S. semiconductor manufacturing capacity. Awards have targeted both large-scale fabrication facilities and, as in SandboxAQ's case, enabling technologies that support the broader manufacturing ecosystem.

The emphasis on AI-driven innovation reflects growing recognition that computational tools can compress development cycles and reduce the experimental iteration required to bring new chip designs and materials to market.

Details of the award were announced during the June 17, 2026 broadcast of Fox Business's Mornings with Maria.