Feed: AnandTech
Feed Link: https://www.anandtech.com
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Title: U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for
Chip Packaging Plants

Date: Fri, 09 Aug 2024 09:00:00 EDT
Link: https://www.anandtech.com/show/21515/us-signs...

Under the CHIPS & Science Act, the U.S. government provided tens of billions
of dollars in grants and loans to the world's leading maker of chips, such as
Intel, Samsung, and TSMC, which will significantly expand the country's
semiconductor production industry in the coming years. However, most chips
are typically tested, assembled, and packaged in Asia, which has left the
American supply chain incomplete. Addressing this last gap in the
government's domestic chip production plans, these past couple of weeks the
U.S. government signed memorandums of understanding worth about $1.5 billion
with Amkor and SK hynix to support their efforts to build chip packaging
facilities in the U.S.

Amkor to Build Advanced Packaging Facility with Apple in Mind

Amkor plans to build a $2 billion advanced packaging facility near Peoria,
Arizona, to test and assemble chips produced by TSMC at its Fab 21 near
Phoenix, Arizona. The company signed a MOU that offers $400 million in direct
funding and access to $200 million in loans under the CHIPS & Science Act. In
addition, the company plans to take advantage of a 25% investment tax credit
on eligible capital expenditures.

Set to be strategically positioned near TSMC's upcoming Fab 21 complex in
Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully
completed, will feature over 500,000 square feet (46,451 square meters) of
cleanroom space, more than twice the size of Amkor's advanced packaging site
in Vietnam. Although the company has not disclosed the exact capacity or the
specific technologies the facility will support, it is expected to cater to a
wide range of industries, including automotive, high-performance computing,
and mobile technologies. This suggests the new plant will offer diverse
packaging solutions, including traditional, 2.5D, and 3D technologies.

Amkor has collaborated extensively with Apple on the vision and initial setup
of the Peoria facility, as Apple is slated to be the facility's first and
largest customer, marking a significant commitment from the tech giant. This
partnership highlights the importance of the new facility in reinforcing the
U.S. semiconductor supply chain and positioning Amkor as a key partner for
companies relying on TSMC's manufacturing capabilities. The project is
expected to generate around 2,000 jobs and is scheduled to begin operations
in 2027.

SK hynix to Build HBM4 in the U.S.

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

The proposed facility is scheduled to begin operations in 2028, which means
that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high
bandwidth memory (HBM) stacks will still be produced in South Korea.
Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating
these memory modules with high-end processors is a big deal.

In addition to building its packaging plant, SK hynix plans to collaborate
with Purdue University and other local research institutions to advance
semiconductor technology and packaging innovations. This partnership is
intended to bolster research and development in the region, positioning the
facility as a hub for AI technology and skilled employment.

Sources: Amkor, SK hynix

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