The CHIPS & Science Act has opened up a substantial source of funding for semiconductor giants like Intel, Samsung, and TSMC, pushing the U.S. to the forefront of chip production. With tens of billions in grants and loans pouring in, the expansion of America’s semiconductor industry is on the horizon. However, there’s been a missing piece in the puzzle: while many chips are fabricated stateside, they typically head to Asia for testing, assembly, and packaging. To fill this crucial gap, the U.S. government recently inked deals totaling about $1.5 billion with Amkor and SK hynix. These agreements aim to boost their chip packaging facilities within the U.S., strengthening the domestic supply chain.
### Amkor’s Strategic Move with an Eye on Apple
Amkor is gearing up to invest $2 billion in a state-of-the-art packaging facility near Peoria, Arizona, which will handle chips manufactured by TSMC at their nearby Fab 21. Thanks to a memorandum of understanding, Amkor will receive $400 million in funding and access to $200 million in loans from the CHIPS & Science Act. They’re also set to benefit from a 25% tax credit on eligible investments.
Strategically located close to TSMC’s future Arizona complex, this new Peoria establishment will span 55 acres and flaunt over half a million square feet of cleanroom space, dwarfing their Vietnam setup. While specific details about the technologies supported haven’t been released, the site is set to serve diverse sectors like automotive, high-performance computing, and mobile technology. This indicates a broad spectrum of packaging solutions will be available, from conventional methods to cutting-edge 2.5D and 3D technologies.
Amkor is collaborating closely with Apple on this project, with the tech giant set to be the facility’s first major client. This partnership underscores the facility’s vital role in reinforcing the U.S. semiconductor supply chain, positioning Amkor as a critical ally for companies leveraging TSMC’s capabilities. The project anticipates creating around 2,000 jobs and aims to commence operations in 2027.
### SK hynix’s Vision for Advanced Memory Packaging
In parallel, SK hynix has entered into a preliminary agreement with the U.S. government, securing up to $450 million in funding and $500 million in loans to establish an advanced memory packaging facility in West Lafayette, Indiana.
This facility is expected to start operations in 2028, focusing on assembling HBM4 or HBM4E memory. While DRAM chips required for these HBM stacks will continue to be produced in South Korea, assembling and potentially integrating these high-performance memory units with advanced processors stateside is a significant step forward.
Beyond just building the facility, SK hynix plans to team up with Purdue University and other local research bodies to push the boundaries of semiconductor tech and packaging solutions. This collaboration aims to create a rich ecosystem for AI tech innovation and skilled job opportunities in the region.
Sources: Amkor, SK hynix
