Igniting the American Manufacturing Renaissance: THE SUPER INTEGRATED CIRCUIT CHIP SEMICONDUCTOR DEVICE

Igniting the American Manufacturing Renaissance: The Strategic Acquisition of Akhan Semiconductor’s Gurnee Facility and Diamond IP

Executive Summary

This report details the critical opportunity presented by Chicago Pixels’ proposed acquisition of the former Akhan Semiconductor facility and its diamond-based intellectual property in Gurnee, Illinois. This strategic move offers a direct pathway to addressing pressing U.S. semiconductor supply chain vulnerabilities, fostering an “American Manufacturing Renaissance” through high-tech job creation, and bolstering national security. The unique value of Akhan’s specialized diamond technology for next-generation defense and industrial applications is highlighted, positioning this initiative as a crucial step towards re-establishing American leadership in advanced manufacturing. Catalyzed by philanthropic donations and amplified by public-private partnerships, this endeavor represents a significant investment in the nation’s technological and economic future.

The Imperative for Domestic Microchip Manufacturing

The United States currently faces a profound strategic vulnerability stemming from its heavy reliance on foreign semiconductor manufacturing. Over the past three decades, domestic production capacity has sharply declined, from nearly 40% of the global supply in 1990 to a mere 12% today, with the majority of microchips now produced in East Asia, specifically South Korea, Taiwan, and China. This dependence is particularly acute for advanced nodes below ten nanometers, where the U.S. lacks sufficient fabrication capacity and relies heavily on firms like Taiwan Semiconductor Manufacturing Corporation (TSMC). The inherent fragility of this supply chain is further compounded by the fact that a single chip can take over three months to manufacture under stringent conditions, and critical equipment, such as extreme ultraviolet lithography (EUV) machines essential for advanced nodes, is exclusively produced by ASML in the Netherlands.  

CLICK BELOW TO DONATE AND HELP MAKE AMERICA A SEMICONDUCTOR GIANT AGAIN!!!

This concentration of advanced chip manufacturing in geopolitically sensitive regions, combined with sole-source critical equipment providers, creates a magnified vulnerability where a single point of failure can trigger widespread disruptions. For instance, escalating geopolitical tensions, particularly with China’s aggressive posture toward Taiwan, expose a glaring weakness in American national security and economic resilience. A disruption in any single critical node—whether due to geopolitical conflict, natural disaster, or a cyberattack on a key equipment supplier—would not merely cause a localized shortage but could trigger cascading failures across global defense, economic, and technological sectors. This intricate web of dependencies means that while building new domestic fabrication facilities is crucial, it must be complemented by a broader strategy that addresses the vulnerabilities inherent in the entire global semiconductor ecosystem, including critical materials and equipment.  

Beyond direct supply disruptions, this foreign dependency and supply chain fragility contribute significantly to inflationary pressures and impede domestic innovation, affecting the U.S. Gross Domestic Product (GDP) and long-term economic leadership. The 2021 global chip shortage, stemming from COVID-19 supply disruptions, caused estimated losses of $210 billion across industries worldwide. Tight supply conditions have led to sharp price increases for electronic components, which in turn contribute to inflation in downstream goods such as vehicles, computers, and medical devices. This constrained, globally concentrated supply, vulnerable to shocks, leads to higher costs and reduced availability, which not only impacts immediate economic stability through inflation but also severely impedes the nation’s capacity for technological advancement and its ability to maintain economic leadership in the long term. The cost of inaction in addressing these vulnerabilities is therefore far greater than just defense implications.  

National Security and Economic Implications of Supply Chain Fragility

The strategic importance of semiconductors is underscored by the U.S. Department of Homeland Security’s classification of the industry under the Critical Manufacturing Sector. These microchips are indispensable, powering a vast array of products from advanced defense systems—including fighter jets, missile guidance systems, AI systems, and national command and control networks—to medical devices, automotive components, and telecommunications infrastructure. The economic stakes of semiconductor insecurity are immense, as these components are embedded in products that represent over 12% of U.S. GDP. Past chip shortages have already demonstrated their severe impact, halting missile assembly lines and delaying major U.S. military acquisition programs such as the F-35 and B-21.  

The global race for semiconductor manufacturing dominance is intrinsically linked to achieving AI supremacy, which directly translates into geopolitical leverage and military advantage. The most capable AI chips, such as NVIDIA’s Grace Blackwell, require advanced five-nanometer manufacturing nodes, which currently only Taiwan’s TSMC and South Korea’s Samsung can fabricate. A loss of access to these chips or exploitation of vulnerabilities within their supply chain would severely impair the development of U.S. defense-relevant AI, including drone swarms, cyber defense automation, and intelligence analysis. The National Security Commission on AI has warned that China could surpass the U.S. in AI capabilities by 2030 if it secures greater access to cutting-edge semiconductors, highlighting the urgency of domestic production.  

Furthermore, the highly automated and interconnected nature of semiconductor fabrication facilities makes them prime targets for sophisticated cyberattacks. These facilities rely on industrial control systems and remote monitoring, similar to other critical infrastructure sectors like water, telecommunications, and energy. A successful cyberattack could not only disrupt production but also subtly corrupt chip designs or physically damage machinery through logic manipulation, akin to the Stuxnet attack on Iranian centrifuges. This creates a long-term, insidious national security threat that extends far beyond immediate supply shortages, as compromised chips could introduce undetectable flaws or backdoors into critical defense systems or infrastructure. Securing the industry’s future therefore requires robust cybersecurity measures and supply chain resilience.  

The CHIPS Act and National Strategic Goals

In recognition of these strategic vulnerabilities, Congress passed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act in 2022. This bipartisan legislation allocates $52 billion to incentivize domestic semiconductor production, research, and workforce development, with $39 billion specifically earmarked for the construction of fabrication plants. Since its enactment, the CHIPS Act has spurred over $450 billion in announced private investments across 28 states, with the U.S. projected to account for approximately 30% of global advanced-node fabrication capacity by 2032. The Act aims to reduce foreign dependency by fostering U.S.-driven manufacturing, packaging, and testing capabilities, and by creating regional manufacturing clusters in states like Arizona, New York, and Texas. It also addresses the significant talent gap, estimated at 67,000 engineers, technicians, and computer scientists by 2030, through investments in training and education, and includes $13.7 billion for semiconductor R&D efforts. Additionally, the law provides a temporary 25% advanced manufacturing investment credit and prohibits funding recipients from expanding semiconductor manufacturing in China or other countries posing a threat to U.S. national security.  

The CHIPS Act has successfully catalyzed significant private investment and a re-shoring trend in semiconductor manufacturing. However, its effectiveness is constrained by the inherent long lead times and immense costs associated with building new fabrication facilities. Constructing leading-edge fabs typically takes three to five years and costs over $10 billion per facility. These new facilities also require a highly trained workforce that the U.S. currently lacks, with a projected talent gap of 67,000 by 2030. This creates a bottleneck where financial incentives alone cannot fully overcome the time and human capital constraints. Therefore, acquiring and revitalizing existing, albeit defunct, facilities with relevant intellectual property could offer a more rapid and cost-effective pathway to accelerating domestic production and addressing these challenges.  

While much of the public discourse and CHIPS Act funding focuses on leading-edge silicon nodes, the Act also implicitly and explicitly supports the production of mature and legacy chips. This indicates a broader strategic imperative to secure the supply of specialized components critical for defense, industrial, and automotive applications. The CHIPS Act specifically responds to the requirement to increase U.S. capability for the production of mature nodes, which have been consistently under-supplied and are essential to the military, automotive, and manufacturing sectors. This broader strategic focus makes specialized technologies, such as Akhan’s unique diamond technology, particularly relevant, even if they do not compete directly with the most advanced silicon logic. Their value lies in filling a vital, often overlooked, segment of the semiconductor supply chain that is crucial for national security and specific industrial needs, aligning perfectly with a comprehensive interpretation of the CHIPS Act’s objectives.  

The Akhan Semiconductor Opportunity in Gurnee, Illinois

Overview of Akhan Semiconductor’s History and Diamond Technology

AKHAN Semiconductor, Inc., founded in Gurnee, Illinois in 2013, was a technology company specializing in the development and fabrication of lab-grown, electronics-grade diamond materials. Their core innovation centered on using man-made diamond rather than silicon to produce new chip materials that offered significant advantages: they were more cost-effective, operated at higher temperatures, were thinner, and required less power. A flagship product, Miraj Diamond® Glass, demonstrated exceptional properties, being six times stronger, ten times harder, and over 800 times cooler than leading competitor glass. These characteristics positioned Akhan’s technology for revolutionary applications in consumer displays, automotive, defense, and industrial sectors.  

The company’s technological foundation was further strengthened by exclusive licensing rights to breakthrough low-temperature diamond deposition technology from the U.S. Department of Energy’s Argonne National Laboratory. This allowed for the deposition of low-defect nanocrystalline diamond (NCD) thin films on various wafer substrate materials at temperatures as low as 400°C, highly advantageous for integration with existing CMOS platforms. Akhan also demonstrated the strategic value of its technology through a collaboration with Lockheed Martin, successfully testing diamond-based coating technology to enhance the survivability of manned and unmanned military aircraft systems against directed energy weapons. Their extensive patent portfolio covers diverse applications, including diamond semiconductors, thin-film coatings, displays, mirrors, and even transistor pathogen detectors.  

Akhan’s diamond technology offers a unique, high-performance solution for extreme operating environments and superior durability. Its ability to operate at higher temperatures, coupled with its exceptional hardness and thermal conductivity, positions it to fill a critical strategic niche not adequately addressed by conventional silicon-based semiconductors. This is particularly relevant for defense, aerospace, and specialized industrial applications where robustness, thermal management, and resistance to harsh conditions are paramount. The collaboration with Lockheed Martin on diamond coatings for UAS survivability against directed energy weapons directly illustrates a high-stakes, specialized application where diamond’s unique thermal and physical properties are not merely beneficial but potentially indispensable. This indicates that Akhan’s technology is not merely an incremental improvement but a foundational shift for specific, high-value sectors where silicon’s limitations become critical, directly addressing a gap in U.S. capabilities for extreme-environment electronics.

Status of the Gurnee Facility and Patent Portfolio

AKHAN Semiconductor ceased operations on June 3, 2024. Its global headquarters and production facility in Gurnee, Illinois, located at 940 Lakeside Drive, which commenced operations in 2015, was listed and subsequently sold on November 2, 2023. This 18,504 square foot industrial property, built in 2001 and renovated in 2022, was occupied by Akhan Semiconductor with a lease expiration in November 2025, along with two five-year renewal options. The company had raised a total of $54.54 million in funding across various rounds, with its last Series A-1 valuation at $32.52 million in January 2023. Following its cessation of operations, Akhan Semiconductor’s patent portfolio is explicitly available for sale.  

The acquisition of Akhan’s intellectual property is highly complex due to the mixed legal status of its patents and the company’s history of intellectual property disputes. While many U.S. patents have been recently granted (e.g., 11915934, 11837472, 11784048, 11605541, 11107684, 11043382, 12288690, 12282018, 12204143), several older U.S. patent applications appear “abandoned” (e.g., US13/273,467, US14/581,030, US15/706,751, US16/459,579), and numerous international applications remain pending. This mixed legal landscape necessitates extensive intellectual property due diligence to determine the true strength, enforceability, and scope of the patents, particularly given Akhan’s cessation of operations and the general process of IP liquidation in such scenarios. The portfolio includes patents with estimated expirations extending into the 2030s and 2040s. Notably, Akhan Semiconductor previously cooperated with a federal investigation into the theft of its intellectual property by Huawei, highlighting the historical value and vulnerability of its IP. Without a unified, comprehensive, and legally robust acquisition strategy, there is a significant risk that the valuable diamond technology IP could be fragmented, making its full commercialization difficult or allowing foreign entities to gain control over critical components.  

The fact that Akhan has ceased operations and its patent portfolio is explicitly available for sale creates a critical, potentially limited, window of opportunity for Chicago Pixels to acquire this specialized intellectual property. Delay could result in the fragmentation of the IP, its acquisition by foreign entities, or its legal status becoming “bona vacantia” (ownerless goods), thereby undermining the strategic national goal of re-establishing domestic manufacturing capabilities. Given the intense global semiconductor patent race and China’s aggressive investment in its own semiconductor ecosystem , there is a significant risk that if Chicago Pixels does not act swiftly, this valuable diamond technology IP could be acquired by foreign competitors or fragmented among multiple buyers. Such an outcome would make it exceedingly difficult, if not impossible, to consolidate the technology necessary for a cohesive domestic manufacturing effort, thus jeopardizing the strategic objective of an “American Manufacturing Renaissance.” The window for a unified acquisition is likely narrow.  

The following table provides an overview of key granted U.S. patents from the Akhan Semiconductor portfolio, highlighting their technology areas and estimated expiration dates. This selection focuses on patents that appear to be active and directly relevant to the core diamond semiconductor and coating technologies.

Table 1: Key Akhan Semiconductor Patent Categories and Expiration Dates (Selected Granted U.S. Patents)

Note: Patent expiration dates are estimates and subject to various factors including maintenance fee payments and patent term adjustments. “Not Explicitly Stated” indicates the exact expiration date was not found in the provided snippets for the specific granted patent number, but related patents or applications may have longer terms.

Strategic Fit: How Akhan’s Assets Address U.S. Manufacturing Gaps

The acquisition of Akhan’s Gurnee facility and its diamond-based intellectual property directly addresses several critical gaps in U.S. semiconductor manufacturing. While the U.S. currently lacks sufficient domestic fabrication capacity for advanced silicon nodes , Akhan’s technology offers a unique, complementary path. Its diamond-based materials provide superior performance characteristics—such as operating at higher temperatures, being thinner, requiring less power, and offering extreme durability—that are crucial for high-performance, niche, and defense applications. The successful collaboration with Lockheed Martin on diamond-based coatings for UAS survivability against directed energy weapons exemplifies its direct relevance to national security needs. This strategic fit aligns with the CHIPS Act’s broader goals of reducing foreign dependency and bolstering domestic production, particularly for mature and specialized nodes essential to the military, automotive, and manufacturing sectors. Acquiring this existing facility and its proven, albeit specialized, technology could significantly accelerate domestic manufacturing capabilities compared to the three to five years and over $10 billion required for new greenfield fabs.  

Akhan’s diamond-based technology offers a complementary rather than directly competitive path to existing silicon fabs, which are primarily focused on leading-edge logic. The U.S. deficit in advanced-node silicon manufacturing is dominated by TSMC and Samsung. Akhan’s core technology, however, is diamond-based, fundamentally distinct from silicon. The collaboration with Lockheed Martin on diamond coatings for UAS survivability against directed energy weapons clearly points to specialized, high-value applications where diamond’s superior properties—such as heat tolerance, hardness, and performance in extreme environments—are critical and where silicon may be inadequate. This means that acquiring Akhan’s assets is not about competing head-to-head with Intel or TSMC in general-purpose computing but about securing a vital, specialized segment of the semiconductor ecosystem that directly enhances national security and industrial resilience by providing components for specific, demanding applications that current silicon capabilities may not fully address.  

Acquiring Akhan’s patent portfolio, particularly those with longer expiration dates and pending international status, allows for the consolidation of significant diamond semiconductor intellectual property under domestic control. This not only secures existing technology but provides a robust foundation for future research and development (R&D) and innovation in advanced materials for semiconductors. The presence of patents extending into the 2030s and 2040s indicates long-term protection for the technology. In the intensely competitive global semiconductor race, intellectual property is of paramount strategic importance. By acquiring these patents, Chicago Pixels gains comprehensive control over a unique and advanced technological foundation in diamond semiconductors. This control is crucial not just for manufacturing existing products but also for enabling further R&D, a key component of the CHIPS Act. It positions the U.S. not merely as a re-manufacturer of existing chips but as a leader in developing next-generation materials and applications, fostering innovation that could lead to entirely new product categories and maintain a competitive edge in the long run.  

Chicago Pixels: A Catalyst for Renaissance

Chicago Pixels envisions leveraging the acquisition of the former Akhan Semiconductor factory and its specialized diamond technology patents in Gurnee, Illinois, as a pivotal step to re-establish robust domestic microchip production. This initiative is designed to directly contribute to the national goal of making “American Microchips Great Again” and initiating a broader “American Manufacturing Renaissance.” The vision extends beyond mere production to fostering a resilient, secure, and innovative semiconductor ecosystem within the U.S., reducing critical foreign dependencies and strengthening national security. By revitalizing an existing, albeit defunct, high-tech manufacturing facility, Chicago Pixels aims to accelerate the timeline for bringing specialized chip production online, complementing the larger greenfield fabrication facility investments spurred by the CHIPS Act.

Leveraging Akhan’s Technology for Next-Generation Applications

The acquisition of Akhan Semiconductor’s Miraj Diamond® Technology and its associated patents provides Chicago Pixels with a unique foundation for developing and manufacturing next-generation applications. This technology, which utilizes man-made diamond instead of silicon, offers superior characteristics such as enhanced durability, higher temperature operation, reduced power consumption, and thinner form factors. These properties make it ideal for a diverse range of high-value applications, including advanced display glass for consumer and automotive industries, specialized optics, and high-performance semiconductors for industrial and defense markets. The proven collaboration with Lockheed Martin on diamond-based coatings for UAS survivability against directed energy weapons underscores the technology’s critical relevance for national security. Furthermore, the licensed low-temperature diamond deposition technology from Argonne National Laboratory allows for integration with existing CMOS platforms , opening avenues for hybrid solutions and broader market adoption.  

Akhan’s diamond technology extends beyond traditional semiconductor components into a range of high-value applications such as advanced displays, specialized optics, and protective coatings for defense systems. The company’s capabilities include “flexible and transparent displays that can be used in wearables and thinner consumer devices,” “diamond windows for industrial, defense and aerospace applications,” and “diamond display glass for use in consumer, automotive, defense, and industrial applications”. The specific defense application with Lockheed Martin for UAS survivability further demonstrates this breadth. This inherent diversification enhances the strategic value and commercial viability of the acquisition, reducing reliance on a single product line and opening multiple, resilient revenue streams critical for long-term sustainability. This signifies that the acquired technology is not narrowly focused on a single type of chip but has broad utility across several critical and high-growth sectors, making the investment more robust by mitigating market risks associated with reliance on a single product or industry.  

Projected Economic Impact and Job Creation in Illinois and Beyond

The establishment of Chicago Pixels’ manufacturing operations in Gurnee, Illinois, is projected to deliver significant economic benefits, contributing directly to job creation and GDP growth. The semiconductor industry is a high-wage sector, with an average annual income of $170,000, and it supports a substantial number of jobs across the wider economy. For every U.S. worker directly employed in the semiconductor industry, an additional 5.7 jobs are supported elsewhere, creating a jobs multiplier of 6.7. While Akhan Semiconductor initially projected employing 100 people in its Gurnee facility within two years of its 2015 opening , a revitalized operation under Chicago Pixels, aligned with national incentives like the CHIPS Act, could aim for a much larger scale. For context, the CHIPS Act is expected to create an average of 185,000 temporary jobs annually (during construction) and add 42,000 new, enduring semiconductor jobs to the U.S. economy by 2027, boosting the total semiconductor workforce to 319,000. Major CHIPS-funded fabs, like Micron’s new megafab, are projected to directly employ 9,000 people and support tens of thousands more indirect jobs. This initiative will provide important blue-collar opportunities, allowing workers to gain skills and earn family-sustaining wages.  

Re-establishing domestic semiconductor manufacturing, even at a specialized scale initially, generates high-wage jobs with a significant multiplier effect across the broader economy. The average annual income in the semiconductor industry is $170,000, and it boasts a jobs multiplier of 6.7. Crucially, one in five workers in the industry has not attended college, meaning the industry provides important blue-collar opportunities where jobs exist for workers to gain skills and earn family-sustaining wages. This means that even a moderate number of direct hires at the Gurnee facility will create a disproportionately large positive economic ripple effect throughout Illinois and the surrounding region, fostering a more inclusive “manufacturing renaissance” by providing high-paying opportunities across various skill levels, directly aligning with federal workforce development goals.  

The establishment of a high-tech manufacturing facility like Akhan’s in Gurnee, Illinois, can serve as a powerful regional economic anchor. This presence is likely to attract ancillary businesses, stimulate local supply chains, foster specialized workforce development programs, and contribute to broader infrastructure improvements. The CHIPS Act’s strategy of creating “regional clusters of manufacturing” in states like Arizona, New York, and Texas has shown that a high-tech manufacturing facility acts as a magnet for a supporting ecosystem. Intel’s presence in Arizona, for example, contributed almost $9 billion annually to the state’s GDP and spurred over $1 billion in local infrastructure development. While the initial scale of Chicago Pixels’ operation might be smaller than these mega-fabs, the underlying principle holds: it will draw suppliers, service providers, and a skilled workforce, creating a localized economic boom. This implies that the impact of the Gurnee facility will extend far beyond its factory walls, revitalizing the local economy, attracting further investment to the Illinois region, and contributing to the decentralization of critical manufacturing capabilities across the U.S.  

The following table provides projected economic impacts based on industry benchmarks, illustrating the potential for job creation and GDP contribution from the Chicago Pixels initiative.

Table 3: Projected Economic Impact: Job Creation and GDP Contribution

Funding the American Manufacturing Renaissance: The Role of Donations and Strategic Capital

Understanding the Scale of Investment Required for Semiconductor Fabs

Building leading-edge semiconductor fabrication facilities (fabs) is an extraordinarily capital-intensive endeavor, typically costing over $10 billion and taking three to five years to construct. The economics of chip manufacturing have shifted, with the minimum efficient scale for leading-edge facilities increasing significantly, necessitating very large “giga-fabs” to achieve lower average production costs, higher throughput, and shorter cycle times. Beyond the initial construction, there are substantial ongoing costs: an estimated $9 billion in one-time capital expenditures is needed to close the materials supply chain gap by 2030, and an additional $1 billion in annual operating expenditures is anticipated to offset higher operating costs in the United States compared to other regions. While the CHIPS Act has spurred over $450 billion in announced private investments in semiconductor manufacturing capacity since 2022, demonstrating significant industry commitment , the sheer scale of these investments underscores that individual donations, while valuable, cannot solely fund such industrial acquisitions and operations.  

The immense capital requirements for establishing and operating semiconductor manufacturing facilities, even specialized ones like Akhan’s, necessitate a sophisticated hybrid funding model. This approach must integrate philanthropic donations with substantial government incentives, such as CHIPS Act grants and tax credits, and traditional private investment. Donations alone are insufficient for the full acquisition and operational costs but can act as crucial seed capital or bridge funding to de-risk and catalyze larger investments. This is because the scale of investment far exceeds what traditional philanthropic donations can provide on their own. By funding initial, high-risk phases—such as due diligence, preliminary refurbishment, and intellectual property acquisition—donations can signal commitment, de-risk the project for larger public and private investors, and bridge funding gaps, thereby enabling the broader, multi-source capital stack required for such an ambitious industrial endeavor.

The Unique Contribution of Philanthropic Capital and Public-Benefit Models

While industrial acquisitions of this scale are unconventional for traditional philanthropy, donations can play a unique and catalytic role in Chicago Pixels’ mission. Non-profit organizations are increasingly exploring mergers and acquisitions as a strategic tool to accelerate their mission impact, and they can legally acquire businesses and assets. To attract significant philanthropic capital for such an endeavor, Chicago Pixels must frame the acquisition as a compelling public good, deeply aligned with its mission of national security, economic resilience, and job creation, rather than a purely commercial venture. Philanthropic funds can be instrumental in de-risking the initial phases of the project, such as funding comprehensive due diligence for the facility and intellectual property, covering initial clean-up and refurbishment costs, and providing seed funding for critical workforce training programs. This initial philanthropic investment can signal viability and commitment, making the project more attractive to larger government grants and private sector investments. Effective donor acquisition strategies, including peer-to-peer fundraising, corporate partnerships, and community events, can be leveraged by emphasizing the mission’s impact and the long-term societal benefits.  

Philanthropic donations, while not sufficient for the full acquisition and operational costs of a semiconductor fabrication facility, can play a critical role in de-risking the initial, often most challenging, phases of this unconventional industrial acquisition. Funders need specific funding streams for nonprofit mergers and acquisitions, including support for due diligence and integration costs. By focusing philanthropic capital on these initial, high-risk, non-revenue-generating phases—such as the complex legal work involved in acquiring a defunct company’s IP , the detailed assessment and preliminary clean-up of a dormant factory , or the development of specialized workforce training curricula —donations can significantly reduce the upfront financial exposure for subsequent, larger investors. This strategic deployment of philanthropic funds acts as a catalyst, demonstrating the project’s serious intent and mitigating perceived risks, thereby paving the way for substantial public and private capital.  

To attract and sustain significant philanthropic support for an industrial acquisition, Chicago Pixels must meticulously frame the initiative as a compelling public good with clear mission alignment. This involves connecting the acquisition to national security, economic resilience, and high-wage job creation, rather than presenting it as a purely commercial venture. Successful donor acquisition and retention hinge on sharing compelling stories of mission impact, creating topical and personalized content, and clearly defining measurable goals. While Akhan Semiconductor’s assets are industrial, the framing of “American Microchips Great Again” and “American Manufacturing Renaissance” provides the crucial public good narrative. Chicago Pixels must articulate how this acquisition directly contributes to national security , creates high-paying jobs , fosters innovation , and strengthens the U.S. economy. By clearly linking the technical and economic outcomes to these broader societal benefits, Chicago Pixels can tap into philanthropic capital that is typically reserved for social causes, transforming an industrial investment into a compelling mission-driven opportunity.  

Synergies with CHIPS Act Funding and Other Government Incentives

Donations can create powerful synergies with existing government incentives, notably the CHIPS Act. The Act allocates substantial funds ($52 billion total, with $39 billion for fabs) and provides various incentives including grants, tax credits, and loan guarantees to bolster domestic semiconductor production, R&D, and workforce development. Chicago Pixels’ acquisition of an existing facility and specialized IP could make it a strong candidate for CHIPS Act funding, particularly given the Act’s support for Small and Medium-Sized Businesses (SMEs) and mature/legacy node production. Furthermore, federal programs like the NSF Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, and “America’s Seed Fund,” offer non-dilutive grants for deep tech startups, which could be relevant for further R&D on Akhan’s diamond technology. Government-backed small business loans also provide flexible funding. The Bayh-Dole Act allows nonprofits to retain ownership of inventions made under federally funded research, which could apply to any future R&D conducted at the facility or even to aspects of Akhan’s original IP if it had federal ties. By strategically leveraging philanthropic capital to demonstrate initial commitment and de-risk the project, Chicago Pixels can significantly enhance its competitiveness for these larger, non-dilutive government funding streams.  

The strategic combination of philanthropic donations with government grants, such as those from the CHIPS Act and NSF programs, offers Chicago Pixels a powerful non-dilutive capital strategy. SBIR grants, for example, provide “non-dilutive capital,” meaning funding without giving up ownership. The CHIPS Act also provides direct grants and loan guarantees, which are non-dilutive forms of capital. Philanthropic donations, by their very nature, are also non-dilutive. By combining these sources, Chicago Pixels can fund a significant portion of the acquisition, refurbishment, and initial operational costs without diluting its ownership or control. This is a critical advantage for a mission-driven entity, as it ensures that the long-term strategic goals—national security, economic resilience, and job creation—remain the primary drivers, rather than the pressures of generating short-term returns for equity investors. This approach allows the “public good” aspect of the venture to be prioritized and protected.  

Aligning Chicago Pixels’ acquisition strategy with explicit CHIPS Act goals and broader federal intellectual property policies will significantly enhance its eligibility and competitiveness for substantial government funding, making it a more attractive and strategically aligned partner for public investment. The CHIPS Act has clearly defined objectives: increasing domestic semiconductor production, investing in R&D, and addressing workforce shortages. It also specifically supports SMEs and the production of “mature nodes” crucial for defense and other sectors. Akhan’s diamond technology, while specialized, could fit within the “mature/niche” category, and Chicago Pixels, as a non-profit, could qualify as an SME or a partner to one. Furthermore, the Bayh-Dole Act allows nonprofits to retain intellectual property from federally funded research , which could be a strategic advantage if Akhan’s past R&D had federal ties, or for future research. By meticulously demonstrating how the Akhan acquisition directly serves these pre-defined national policy priorities, Chicago Pixels can present a highly compelling case for federal and state financial support, positioning itself as a key implementer of national strategy rather than just another commercial venture seeking funds.  

Strategic Partnerships and Private Sector Engagement

Beyond philanthropic and government funding, securing strategic partnerships with key industry players and attracting private sector engagement will be crucial for the long-term success and commercial viability of Chicago Pixels. The CHIPS Act explicitly encourages cross-industry collaboration between semiconductor manufacturers and other sectors like aerospace, automotive, and healthcare. Akhan Semiconductor’s prior collaboration with Lockheed Martin on defense applications provides a strong precedent and potential pathway for future strategic alliances. Private firms have already committed hundreds of billions in investments since the CHIPS Act was signed , demonstrating a vibrant ecosystem of potential partners. Engaging venture capitalists and angel investors focused on manufacturing innovation, particularly those interested in disruptive technologies or scalable business models, could provide additional capital. These partnerships offer not only financial investment but also invaluable market validation, technical expertise, supply chain integration, and access to commercialization channels, ensuring that the revitalized facility can operate competitively and sustainably.  

Proposed Funding Model for Chicago Pixels

The optimal funding model for Chicago Pixels’ acquisition of the Akhan Semiconductor facility and its patents will be a robust hybrid approach, strategically blending philanthropic capital, government incentives, and private sector investment. This multi-pronged approach leverages the unique strengths of each funding source: philanthropy for catalytic, mission-aligned seed funding; government for strategic, large-scale investment in national priorities; and private sector for market-driven capital, expertise, and commercialization.

• Philanthropic Donations: These will serve as catalytic, de-risking capital for initial phases, including:
• Due diligence for facility and intellectual property acquisition.
• Legal and administrative costs associated with the acquisition of a defunct entity’s assets.
• Seed funding for preliminary facility clean-up and essential infrastructure assessments.
• Development of initial workforce training programs and curriculum.
• Demonstrating community and mission-driven commitment to attract broader support.
• Government Incentives (CHIPS Act & Others): These will provide the foundational, large-scale capital for:
• Grants and tax credits for facility refurbishment, equipment procurement, and scaling production lines.
• Funding for ongoing research and development in diamond semiconductor technology.
• Significant investment in long-term workforce development and talent pipeline initiatives, potentially through partnerships with local educational institutions.
• Support for supply chain resilience, including chemical and materials sourcing.
• Private Sector Engagement: This will contribute critical operational and market-driven capital through:
• Strategic equity investments or joint ventures from companies seeking access to diamond technology for their products (e.g., defense, automotive, display manufacturers).
• Offtake agreements or long-term purchasing contracts from key customers, providing predictable revenue streams.
• Partnerships for shared R&D, technology transfer, and commercialization pathways.
• Potential for venture capital or angel investment for specific product lines or spin-offs focused on high-growth applications.

The following table provides an estimated investment breakdown for the facility acquisition and revitalization, outlining key cost categories and potential primary funding sources.

Table 2: Estimated Investment Breakdown for Facility Acquisition and Revitalization

Note: These figures are illustrative and highly dependent on the specific scope of revitalization, equipment required, and market conditions.

Challenges and Mitigation Strategies

Operationalizing a Defunct Facility and Workforce Development

Operationalizing a previously active but now defunct manufacturing facility, particularly one as specialized as Akhan Semiconductor’s, presents significant challenges. While the Gurnee facility was sold in late 2023 , its current operational status and the condition of its specialized equipment need thorough assessment. Semiconductor manufacturing requires an extremely stringent production environment , and bringing a dormant fab back online demands substantial refurbishment and re-commissioning. A major challenge for the U.S. semiconductor industry as a whole is a significant talent gap, estimated at 67,000 engineers, technicians, and computer scientists by 2030. While the CHIPS Act invests in training and education to address this , and companies like Micron have committed hundreds of millions to workforce development , Akhan’s diamond-based technology requires a highly specialized skillset.  

While a general semiconductor talent gap exists nationally, operationalizing Akhan’s facility specifically requires highly targeted re-skilling and specialized training for diamond-based semiconductor manufacturing. The generic semiconductor training may not suffice, as specific expertise in diamond deposition, doping, and fabrication processes will be required. Successfully addressing this will necessitate leveraging CHIPS Act workforce development funds, establishing robust partnerships with local community colleges and universities, and potentially attracting former Akhan employees to build this niche expertise. Models seen with other CHIPS Act recipients, such as Micron’s commitment to “semiconductor curriculum development, university partnerships, community college partnerships for apprenticeships” , will be crucial. Additionally, identifying and re-engaging any former Akhan employees, as Akhan was actively hiring to staff its new facility in 2015 , could provide invaluable institutional knowledge and accelerate the re-skilling process for this niche technology.  

Navigating Intellectual Property Acquisition and Commercialization

The acquisition of Akhan Semiconductor’s patent portfolio is fraught with complexities. While many U.S. patents have recently been granted, several older U.S. applications are listed as “abandoned,” and there are numerous international filings with varying statuses. This mixed legal landscape necessitates extensive intellectual property due diligence to determine the true strength, enforceability, and scope of the patents, particularly given Akhan’s cessation of operations and the general process of IP liquidation in such scenarios. Furthermore, Akhan’s past cooperation with a federal investigation into Huawei for intellectual property theft underscores the importance of robust IP protection and the potential for future disputes in a globally competitive industry where China’s patent filings are rapidly growing. Commercializing this specialized diamond technology will require careful strategic planning, identifying appropriate market applications beyond initial defense contracts, and navigating a global IP landscape where a multi-region strategy is critical for market leadership.  

The acquisition of Akhan’s intellectual property is highly complex due to the mixed legal status of its patents and the company’s history of IP disputes. The patchwork of patent statuses—some U.S. applications “abandoned,” others “granted,” and numerous international filings “pending” or “granted”—creates legal ambiguity. This, combined with Akhan’s cessation of operations and the general process of IP liquidation , creates a high risk of fragmentation if the portfolio is not acquired as a cohesive unit. The past IP theft incident involving Huawei further highlights the vulnerability and value of this IP. Without a unified, comprehensive, and legally robust acquisition strategy, there is a significant risk that the valuable diamond technology IP could be fragmented, making its full commercialization difficult or allowing foreign entities to gain control over critical components. This would severely impede its commercialization potential and could allow foreign competitors to gain access to critical components of the technology, undermining the national security objective.  

Given the global nature of semiconductor intellectual property and the existence of Akhan’s international patent filings, a successful long-term commercialization strategy for Chicago Pixels requires not only securing the U.S. patents but also understanding and potentially maintaining the international patent portfolio. This is crucial to ensure global enforceability and market leadership. Differences in examination standards between the U.S., Asia, and Europe can lead to inconsistencies in granted claims, undermining their value in cross-border disputes. Therefore, involving experienced patent attorneys early in the drafting and acquisition process, particularly those with a global perspective, is critical to avoid costly amendments or rejections later. This comprehensive approach to intellectual property management is essential to protect the investment and ensure the technology’s widespread adoption and impact.  

Conclusions

The proposed acquisition of the former Akhan Semiconductor factory in Gurnee, Illinois, and its diamond-based intellectual property by Chicago Pixels represents a unique and timely opportunity to address critical vulnerabilities in the U.S. semiconductor supply chain and catalyze an “American Manufacturing Renaissance.” The nation’s current reliance on foreign semiconductor manufacturing, particularly for advanced chips, poses significant national security and economic risks, as demonstrated by past supply disruptions and the imperative to maintain AI supremacy. While the CHIPS Act has spurred substantial investment, the long lead times and talent gaps for new fabrication facilities underscore the strategic advantage of revitalizing an existing, specialized facility.

Akhan’s diamond technology offers a complementary, high-performance solution for extreme environments and specialized applications, crucial for defense and industrial sectors not fully served by conventional silicon. The availability of its Gurnee facility and patent portfolio, following the company’s cessation of operations, presents a distressed asset opportunity. However, the complex legal status of its intellectual property and the need for a highly specialized workforce necessitate thorough due diligence and targeted development strategies.

Donations will play a pivotal role in enabling this ambitious endeavor. While the scale of investment for semiconductor manufacturing far exceeds what philanthropy alone can provide, donations can serve as critical catalytic capital. By funding the initial, high-risk phases—such as comprehensive due diligence for the facility and intellectual property, preliminary clean-up and refurbishment, and the development of specialized workforce training programs—donations can de-risk the project for larger government grants and private sector investments. This strategic deployment of philanthropic funds will signal commitment, demonstrate viability, and bridge crucial funding gaps, thereby unlocking the substantial public and private capital required.

Furthermore, framing this initiative as a compelling public good, deeply aligned with national security, economic resilience, and high-wage job creation, will attract and sustain philanthropic support. By leveraging a hybrid funding model that synergizes philanthropic contributions with CHIPS Act grants, other government incentives, and strategic private sector partnerships, Chicago Pixels can acquire and revitalize these critical industrial assets without ceding equity or control. This non-dilutive capital strategy ensures that the mission-driven objectives of making “American Microchips Great Again” and igniting an “American Manufacturing Renaissance” remain paramount, securing a vital piece of the nation’s technological future.

PLEASE SEE OUR OTHER ARTICLES ON MICROCHIPS AND SEMICONDUCORS HERE: 1) Amazon Unveils ‘Ocelot’ Quantum Computing Chip 2) No need for one country to control chip industry, Taiwan official says! Includes 4 Videos!!! 3) Google says its new quantum chip indicates that multiple universes exist 4) Revolutionize Your Technology with the SUPER INTEGRATED CIRCUIT CHIP SEMICONDUCTOR DEVICE! 5) Igniting the American Manufacturing Renaissance: THE SUPER INTEGRATED CIRCUIT CHIP SEMICONDUCTOR DEVICE 6) MAKE AMERICAN MICROCHIPS GREAT AGAIN!