U.S. Secures $1.5 Billion in CHIPS Act Deals with Amkor and SKhynix for Semiconductor Packaging Facilities

In light of the CHIPS & Science Act, the U.S. government has funneled billions into grants and loans to semiconductor giants like Intel, Samsung, and TSMC, aiming to ramp up America’s semiconductor production over the next few years. Currently, the lion’s share of chip testing, assembly, and packaging happens in Asia, leaving a crucial gap in the American supply chain. In a bid to close this gap, the government recently inked $1.5 billion worth of agreements with Amkor and SK hynix. These deals are set to bolster the establishment of chip packaging facilities on U.S. soil.

### Amkor’s Advanced Packaging Venture with Apple

Amkor is gearing up to establish a $2 billion state-of-the-art packaging facility close to Peoria, Arizona. This site will serve as a hub for testing and assembling chips from TSMC’s Fab 21, situated near Phoenix. According to their memorandum of understanding, Amkor will receive $400 million in direct funding along with access to $200 million in loans under the CHIPS & Science Act. Additionally, they stand to benefit from a 25% investment tax credit on eligible capital expenditures.

Strategically located near TSMC’s impending Fab 21 hub in Arizona, Amkor’s new facility will cover 55 acres and boast over 500,000 square feet of cleanroom space – more than double the size of its advanced facility in Vietnam. While specific capacity details and technologies remain under wraps, it’s likely that the facility will cater to various industries, from automotive to high-performance computing and mobile technologies. This points to an array of packaging solutions, including traditional, 2.5D, and 3D technologies.

Apple plays a significant role in this new endeavor, having collaborated with Amkor on both the vision and foundational plans for the Peoria site. As the facility’s first and foremost customer, Apple underscores the critical role of this venture in strengthening America’s semiconductor supply chain. With an anticipated start of operations in 2027, this project is poised to create around 2,000 jobs, marking a substantial boost for the local economy.

### SK hynix’s Plans for HBM4 Production in the U.S.

Meanwhile, SK hynix has signed a preliminary understanding with the U.S. government to secure up to $450 million in funding and $500 million in loans. This support will help construct an advanced memory packaging facility in West Lafayette, Indiana.

Set to commence operations in 2028, this facility will focus on assembling HBM4 or HBM4E memory. Although DRAM production for these high-bandwidth memory structures will continue in South Korea, completing the HBM4/HBM4E packages in the U.S. introduces a significant capability shift, possibly marrying high-end processors with these memory units stateside.

SK hynix isn’t stopping at just a packaging plant. They’re partnering with Purdue University and other local research bodies to drive semiconductor technology and packaging innovations forward. This collaboration aims to invigorate research and development, turning the facility into a focal point for AI technology and creating high-skilled job opportunities.

References: Amkor, SK hynix