U.S. Indicators $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Crops

Underneath the CHIPS & Science Act, the U.S. authorities offered tens of billions of {dollars} in grants and loans to the world’s main maker of chips, similar to Intel, Samsung, and TSMC, which is able to considerably develop the nation’s semiconductor manufacturing business within the coming years. Nevertheless, most chips are sometimes examined, assembled, and packaged in Asia, which has left the American provide chain incomplete. Addressing this final hole within the authorities’s home chip manufacturing plans, these previous couple of weeks the U.S. authorities signed memorandums of understanding value about $1.5 billion with Amkor and SK hynix to help their efforts to construct chip packaging amenities within the U.S.

Amkor to Construct Superior Packaging Facility with Apple in Thoughts

Amkor plans to build a $2 billion advanced packaging facility near Peoria, Arizona, to check and assemble chips produced by TSMC at its Fab 21 close to Phoenix, Arizona. The corporate signed a MOU that gives $400 million in direct funding and entry to $200 million in loans below the CHIPS & Science Act. As well as, the corporate plans to make the most of a 25% funding tax credit score on eligible capital expenditures.

Set to be strategically positioned close to TSMC’s upcoming Fab 21 advanced in Arizona, Amkor’s Peoria facility will occupy 55 acres and, when totally accomplished, will characteristic over 500,000 sq. ft (46,451 sq. meters) of cleanroom area, greater than twice the scale of Amkor’s superior packaging website in Vietnam. Though the corporate has not disclosed the precise capability or the precise applied sciences the power will help, it’s anticipated to cater to a variety of industries, together with automotive, high-performance computing, and cell applied sciences. This implies the brand new plant will supply various packaging options, together with conventional, 2.5D, and 3D applied sciences.

Amkor has collaborated extensively with Apple on the imaginative and prescient and preliminary setup of the Peoria facility, as Apple is slated to be the power’s first and largest buyer, marking a big dedication from the tech big. This partnership highlights the significance of the brand new facility in reinforcing the U.S. semiconductor provide chain and positioning Amkor as a key companion for firms counting on TSMC’s manufacturing capabilities. The venture is predicted to generate round 2,000 jobs and is scheduled to start operations in 2027. 

SK hynix to Construct HBM4 within the U.S.

This week SK hynix additionally signed a preliminary settlement with the U.S. authorities to obtain as much as $450 million in direct funding and $500 million in loans to construct a sophisticated reminiscence packaging facility in West Lafayette, Indiana. 

The proposed facility is scheduled to start operations in 2028, which implies that it’s going to assemble HBM4 or HBM4E reminiscence. In the meantime, DRAM gadgets for prime bandwidth reminiscence (HBM) stacks will nonetheless be produced in South Korea. Nonetheless, packing completed HBM4/HBM4E within the U.S. and presumably integrating these reminiscence modules with high-end processors is an enormous deal.

Along with constructing its packaging plant, SK hynix plans to collaborate with Purdue College and different native analysis establishments to advance semiconductor know-how and packaging improvements. This partnership is meant to bolster analysis and improvement within the area, positioning the power as a hub for AI know-how and expert employment.

Sources: Amkor, SK hynix