In the ever-evolving world of semiconductor production, the U.S. has taken a significant step forward under the CHIPS & Science Act. Through this initiative, the government is funneling tens of billions of dollars in grants and loans to major chip makers like Intel, Samsung, and TSMC. The aim? To massively boost the country’s semiconductor industry. While Asia has traditionally led in the testing, assembly, and packaging of these chips, creating a critical gap in the American supply chain, recent efforts have focused on bridging this divide. In recent weeks, memorandums worth about $1.5 billion have been signed with Amkor and SK hynix to support the establishment of chip packaging facilities stateside.
### Amkor’s Ambitious Plans with a Nod to Apple
Amkor is stepping into the spotlight with plans to construct a cutting-edge packaging facility near Peoria, Arizona. With a hefty price tag of $2 billion, this facility will specifically focus on chips manufactured by TSMC at their Fab 21, soon to grace Phoenix. Their agreement, backed by a robust $400 million in direct funding along with $200 million in loans under the CHIPS & Science Act, is supported further by a 25% investment tax credit on eligible capital expenditures.
Strategically nestled close to TSMC’s forthcoming Fab 21, Amkor’s new Peoria setup will span an impressive 55 acres. Once fully realized, the site promises over 500,000 square feet of cleanroom space, dwarfing its current advanced packaging hub in Vietnam. While specifics on capacity and technology remain under wraps, expectations are high that this facility will cater to diverse sectors such as automotive, high-performance computing, and mobile technology — hinting at traditional, 2.5D, and 3D packaging solutions.
Notably, Amkor has teamed up with Apple to lay the foundation for this site, with Apple slated to be its primary and perhaps most significant customer. This collaboration underscores the facility’s role in bolstering the U.S. semiconductor supply chain and positions Amkor as a critical player for companies banking on TSMC’s manufacturing prowess. The layout is poised to create around 2,000 jobs, with operations slated to kick off in 2027.
### SK hynix Sets Sights on U.S. HBM4 Packaging
In parallel, SK hynix is also making waves, having inked a preliminary agreement with the U.S. government. A substantial package, amounting to $450 million in direct funding and $500 million in loans, will support the construction of an advanced memory packaging plant in West Lafayette, Indiana.
With plans to begin operations in 2028, the facility is earmarked for assembling HBM4 or HBM4E memory. While the DRAM components essential for HBM stacks will be crafted in South Korea, this new American facility will focus on packaging these memory units and potentially integrating them with high-end processing technologies — a significant development in the semiconductor landscape.
Beyond constructing the plant, SK hynix is committed to partnering with Purdue University and other renowned research bodies. This collaboration aims to push forward semiconductor technology and packaging innovations, transforming the region into a nucleus for AI tech and advanced employment opportunities.
In conclusion, these strategic moves by Amkor and SK hynix signify a pivotal shift in the global chip production balance, with tangible benefits poised to unfold for the U.S. semiconductor industry.
