In a significant move to bolster the U.S. semiconductor landscape, the government, under the CHIPS & Science Act, has committed substantial funds to industry giants like Intel, Samsung, and TSMC. With the aim to expand domestic chip production dramatically, this initiative injects billions in grants and loans. Yet, a critical piece of the puzzle remained unsolved: most chips are typically sent to Asia for testing, assembly, and packaging, leaving the American supply chain somewhat fragmented. To address this, the U.S. recently inked agreements worth about $1.5 billion with Amkor and SK hynix. These memorandums aim to establish chip packaging facilities stateside, patching a vital gap in their ambitious production plans.
### Amkor’s Facility with Apple’s Input
Amkor is stepping up with plans for a groundbreaking $2 billion advanced packaging center near Peoria, Arizona. This facility is set to handle chips manufactured by TSMC at its new location in Phoenix. As part of the arrangement, Amkor has secured a memorandum of understanding that provides $400 million in direct funding plus access to $200 million in loans through the CHIPS & Science Act. The company is also poised to tap into a 25% investment tax credit for eligible capital investments.
Nestled close to TSMC’s under-construction Fab 21, Amkor’s upcoming Peoria outpost will span 55 acres. Once complete, it will boast over 500,000 square feet of cleanroom space—more than double the size of its Vietnamese counterpart. While details about specific technologies and capacity remain under wraps, the facility is designed to support various sectors such as automotive, cutting-edge computing, and mobile technology. This hints at a robust offering, with packaging solutions ranging from conventional to advanced 2.5D and 3D technologies.
A noteworthy collaboration is unfolding between Amkor and Apple on this project. Apple is poised not only as the facility’s inaugural customer but also as its largest, underscoring its importance in solidifying the U.S. semiconductor ecosystem. This partnership also envisions substantial job creation, with about 2,000 positions anticipated, and operations set to kick off in 2027.
### SK hynix’s HBM4 Venture in America
In parallel, SK hynix has forged a preliminary pact with the U.S. government. This accord promises up to $450 million directly and $500 million in loans for an advanced memory packaging plant in West Lafayette, Indiana.
Scheduled for a 2028 operational debut, this plant will focus on assembling HBM4 or its enhanced version, HBM4E, memory. While the DRAM components for these high-bandwidth memory (HBM) stacks will still originate from South Korea, the prospect of completing the process in the U.S., possibly even merging these modules with top-tier processors, marks a significant industry milestone.
SK hynix is not stopping at just building a plant; they are also planning collaborations with Purdue University and other local research entities to push forward semiconductor and packaging technology research. This initiative aims to establish the facility as a center for AI technological advancements and a source of skilled employment.
Sources: Amkor, SK hynix
