Under the CHIPS & Science Act, the U.S. government allocated tens of billions of dollars in grants and loans to leading chip manufacturers like Intel, Samsung, and TSMC, which is set to notably enhance the country’s semiconductor production landscape over the coming years. Currently, most chips are typically tested, assembled, and packaged in Asia, leaving the American supply chain somewhat incomplete. To address this gap in the government’s domestic chip production strategy, recent weeks have seen the U.S. government sign memorandums of understanding worth approximately $1.5 billion with Amkor and SK hynix to support their efforts in establishing chip packaging facilities across the U.S.
Amkor to Build Advanced Packaging Facility with Apple in Mind
Amkor plans to construct a $2 billion advanced packaging facility near Peoria, Arizona, to test and assemble chips manufactured by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a memorandum of understanding that provides $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. Additionally, the company intends to utilize a 25% investment tax credit on eligible capital expenditures.
Strategically positioned near TSMC’s upcoming Fab 21 complex in Arizona, Amkor’s Peoria facility will cover 55 acres and, upon full completion, will possess over 500,000 square feet (46,451 square meters) of cleanroom space, more than double the size of Amkor’s advanced packaging site in Vietnam. Although the company has not revealed the precise capacity or specific technologies the facility will support, it is anticipated to serve various industries, including automotive, high-performance computing, and mobile technologies. This implies the new plant will provide diverse packaging solutions, encompassing traditional, 2.5D, and 3D technologies.
Amkor has worked closely with Apple on the vision and initial setup of the Peoria facility, as Apple is expected to be the facility’s first and predominant customer, indicating a substantial commitment from the tech giant. This partnership underscores the significance of the new facility in fortifying the U.S. semiconductor supply chain and positioning Amkor as a crucial partner for companies relying on TSMC’s manufacturing capabilities. The project is anticipated to create around 2,000 jobs and is slated to commence operations in 2027.
SK hynix to Build HBM4 in the U.S.
This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans for constructing an advanced memory packaging facility in West Lafayette, Indiana.
The proposed facility is scheduled to initiate operations in 2028, indicating that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will continue to be produced in South Korea. Nonetheless, packaging finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is significant.
Alongside establishing its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership aims to enhance research and development in the region, positioning the facility as a hub for AI technology and skilled employment.
