U.S. Secures $1.5 Billion in CHIPS Act Deals with Amkor and SKhynix for Chip Packaging Facilities

As part of the CHIPS & Science Act initiative, the U.S. government has pumped tens of billions into grants and loans for chip giants like Intel, Samsung, and TSMC, aiming to significantly boost its semiconductor sector in the coming years. However, the American supply chain has a crucial missing piece—most chips are currently tested, assembled, and packaged in Asia. To close this gap, the government recently inked deals worth approximately $1.5 billion with Amkor and SK hynix to establish chip packaging facilities stateside.

### Amkor’s Ambitious Project with Apple

Amkor is gearing up to build a $2 billion advanced packaging facility near Peoria, Arizona, to work on chips produced by TSMC at its nearby Fab 21 in Phoenix. Through a memorandum of understanding (MOU), Amkor secured $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. Additionally, the company plans to benefit from a 25% investment tax credit on eligible capital costs.

Strategically positioned near TSMC’s future Fab 21 complex in Arizona, Amkor’s site in Peoria will spread across 55 acres and will eventually boast over 500,000 square feet of cleanroom space—more than twice the size of its advanced packaging site in Vietnam. Although specific capacity details and technology offerings have not been disclosed, the facility is expected to serve industries ranging from automotive to high-performance computing and mobile technologies. This suggests a variety of packaging solutions like traditional, 2.5D, and 3D technologies will be available.

In a notable collaboration, Amkor has teamed up with Apple in the early stages of the Peoria facility’s design, as Apple is set to be its primary customer. This partnership underscores the facility’s pivotal role in bolstering the U.S. semiconductor supply chain and enhances Amkor’s position as a trusted partner for firms utilizing TSMC’s manufacturing prowess. The project promises to create roughly 2,000 jobs and is slated to become operational in 2027.

### SK hynix’s Plans for HBM4 Production in the U.S.

Meanwhile, SK hynix has reached a preliminary agreement with the U.S. government to secure up to $450 million in direct funding alongside $500 million in loans to establish an advanced memory packaging plant in West Lafayette, Indiana.

Construction of this facility is set to begin operations in 2028, targeting the assembly of HBM4 or HBM4E memory. DRAM components for high bandwidth memory stacks will continue to be manufactured in South Korea. Nevertheless, packaging the completed HBM4/HBM4E in the U.S. and potentially integrating them with top-tier processors is a crucial move.

Furthermore, SK hynix is collaborating with Purdue University and other local research entities to push the boundaries of semiconductor technology and packaging innovations. This alliance aims to enhance research and development, positioning the facility as a nexus for AI advancements and skilled job opportunities.

Sources: Amkor, SK hynix