In a major boost to the semiconductor industry, the U.S. government, under the CHIPS & Science Act, has pledged significant financial backing to chip giants like Intel, Samsung, and TSMC. This initiative is poised to dramatically enhance America’s domestic chip production over the coming years. Yet, a crucial part of the supply chain—testing, assembling, and packaging—largely takes place in Asia, creating an incomplete U.S. infrastructure. To bridge this gap, the government recently entered into agreements valued at approximately $1.5 billion with Amkor and SK hynix. These deals aim to set up chip packaging plants in the U.S., addressing this integral part of the industry’s expansion.
Amkor’s Strategic Move in Arizona
Amkor is making waves with its ambitious plan to establish a state-of-the-art packaging facility near Peoria, Arizona, with an eye on Apple as a key partner. Valued at $2 billion, this project benefits from $400 million in direct funding and an additional $200 million in loans under the CHIPS & Science Act. The initiative also takes full advantage of a 25% investment tax credit applicable to eligible capital expenses.
Smartly situated near TSMC’s forthcoming Fab 21 in Arizona, Amkor’s new site will cover 55 acres and ultimately boast a massive 500,000 square feet (about 46,451 square meters) of cleanroom space, more than twice the capacity of their facility in Vietnam. While the exact production capacity and supported technologies remain under wraps, it’s expected that the plant will cater to diverse sectors such as automotive, high-performance computing, and mobile technologies. This likely means the facility will offer a range of packaging solutions, including traditional, 2.5D, and 3D technologies.
The collaboration with Apple is particularly noteworthy, as the tech behemoth is set to become Amkor’s largest customer at the new facility. Such a partnership underscores the strategic importance of the facility in solidifying the U.S. semiconductor supply chain and amplifies Amkor’s role as an essential ally for companies utilizing TSMC’s manufacturing prowess. This project is anticipated to generate around 2,000 jobs, with operations slated to commence in 2027.
SK hynix Eyes Indiana for Advanced Memory Packaging
In a parallel development, SK hynix has inked a preliminary deal with the U.S. government to secure up to $450 million in direct funding and $500 million in loans. This arrangement supports the creation of an advanced memory packaging plant in West Lafayette, Indiana.
With operations targeted to begin in 2028, this facility is set to handle HBM4 or HBM4E memory packaging, though the underlying DRAM devices will continue to be manufactured in South Korea. By finalizing HBM4/HBM4E assembly in the U.S. and potentially integrating these memory modules with top-tier processors, SK hynix is making a notable strategic move.
SK hynix also plans to team up with Purdue University and local research entities to push the boundaries of semiconductor technology and packaging innovation. This collaboration aims to nurture the region’s research and development capabilities, making the facility a center for AI technology and expert jobs.
These developments by Amkor and SK hynix are exciting steps forward in the U.S. semiconductor landscape, promising to shore up national supply chains and bolster technological advancements.
Sources: Amkor, SK hynix
