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

Under the Chip and Science Act, the U.S. government is providing tens of billions of dollars in grants and loans to the world’s leading chipmakers such as Intel, Samsung and TSMC, which will significantly expand the country’s semiconductor production industry in the coming years. However, most wafers are typically tested, assembled and packaged in Asia, leaving the U.S. supply chain incomplete. Addressing the final gap in the government’s domestic chip production plans, the U.S. government has in the past few weeks signed memorandums of understanding worth approximately $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the United States.

Amkor to build advanced packaging facilities for Apple

Safe and reliable Plans to build a $2 billion advanced packaging plant near Peoria, Arizonatesting and assembling wafers produced at TSMC’s Fab 21 facility near Phoenix, Arizona. The company signed a memorandum of understanding providing $400 million in direct funding and received a $200 million loan under the Chip and Science Act. In addition, the company plans to enjoy a 25% investment tax credit on eligible capital expenditures.

Amkor’s Peoria facility is strategically located on 55 acres near TSMC’s upcoming Fab 21 complex in Arizona and will have more than 500,000 square feet (46,451 square meters) of clean room space when fully completed. Amkor’s advanced plant is more than twice the size of Vietnam’s packaging site. While the company has not disclosed the exact capacity or specific technologies the facility will support, it is expected to serve a wide range of industry needs, including automotive, high-performance computing and mobile technology. This shows that the new factory will offer a diverse range of packaging solutions, including traditional, 2.5D and 3D technologies.

Amkor has worked extensively with Apple on the vision and initial setup of the Peoria facility as Apple is expected to be the facility’s first and largest customer, marking a significant commitment from the tech giant. The collaboration underscores the new facility’s importance to strengthening the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies that rely on TSMC’s manufacturing capabilities. The project is expected to create approximately 2,000 jobs and is scheduled to begin operations in 2027.

SK Hynix to build HBM4 in US

This week, SK Hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and a $500 million loan to build an advanced memory packaging factory in West Lafayette, Indiana.

The proposed facility is scheduled to begin operations in 2028, meaning it will assemble HBM4 or HBM4E memories. Meanwhile, DRAM devices for high-bandwidth memory (HBM) stacking will still be produced in South Korea. Still, packaging the finished HBM4/HBM4E in the U.S. and potentially integrating these memory modules with high-end processors is a big deal.

In addition to building packaging plants, SK Hynix also plans to cooperate with Purdue University and other local research institutions to promote semiconductor technology and packaging innovation. The partnership aims to enhance research and development in the region, positioning the facility as a center for artificial intelligence technology and skilled employment.

Source: Safe and reliable, SK hynix