Under the CHIPS & Science Act, the U.S. government is making a big financial push into the semiconductor industry, offering tens of billions in grants and loans to powerhouses like Intel, Samsung, and TSMC. This effort is set to boost the nation’s chip production over the next several years. However, there’s a hitch: most chips are tested, assembled, and packaged in Asia, leaving the U.S. supply chain with a missing link. To close this gap, the U.S. government has recently inked deals worth roughly $1.5 billion with companies Amkor and SK hynix. These agreements aim to foster chip packaging facilities on American soil.
### Amkor: Crafting a Cutting-Edge Facility with Apple in the Picture
Amkor is plotting a $2 billion advanced packaging hub near Peoria, Arizona, designed to handle chips coming out of TSMC’s Fab 21, located close by in Phoenix. They’ve secured a memorandum of understanding (MOU) that provides $400 million in funding along with $200 million in loans, thanks to the CHIPS & Science Act. Additionally, the company plans to make the most of a 25% investment tax credit on eligible capital spending.
Strategically sitting near TSMC’s soon-to-be operational Fab 21, Amkor’s Peoria site will spread across 55 acres and will boast a whopping half a million square feet of cleanroom space—more than double the size of its facility in Vietnam. While details on capacity and specific tech aren’t fully out there yet, expectations are high that this plant will cater to diverse sectors, such as automotive, high-performance computing, and mobile tech, hinting at a range of packaging solutions like traditional, 2.5D, and 3D technologies.
The collaboration with Apple on shaping up the Peoria facility underscores its importance, with Apple poised to be its main client. This partnership not only strengthens the U.S. semiconductor chain but also elevates Amkor as a vital ally for firms leaning on TSMC’s production expertise. Anticipated to create around 2,000 jobs, the facility aims to kickstart operations by 2027.
### SK hynix: Bringing HBM4 to American Soil
In a parallel move, SK hynix has teamed up with the U.S. government, prepping to receive up to $450 million in funding and $500 million in loans for setting up an advanced memory packaging plant in West Lafayette, Indiana.
Scheduled to commence operations in 2028, this facility will focus on assembling HBM4 or HBM4E memory. DRAM chips for high bandwidth memory stacks will still be rolled out in South Korea, but completing HBM4/HBM4E in the U.S. and potentially pairing these modules with elite processors marks a significant stride.
SK hynix isn’t stopping at setting up a packaging plant. They plan to partner with Purdue University alongside other local research bodies to fuel advancements in semiconductor tech and packaging innovations. This collaboration aims to spur regional research and development, creating a hotbed for AI technology and nurturing specialized employment opportunities.
Sources: Amkor, SK hynix
