Home Update U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and…

U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and…

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U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and...


Under the CHIPS & Science Act, the U.S. authorities supplied tens of billions of {dollars} in grants and loans to the world’s main maker of chips, reminiscent of Intel, Samsung, and TSMC, which is able to considerably increase the nation’s semiconductor manufacturing business within the coming years. However, most chips are usually examined, assembled, and packaged in Asia, which has left the American provide chain incomplete. Addressing this final hole within the authorities’s home chip manufacturing plans, these previous couple of weeks the U.S. authorities signed memorandums of understanding price about $1.5 billion with Amkor and SK hynix to help their efforts to construct chip packaging amenities within the U.S.

Amkor to Build Advanced Packaging Facility with Apple in Mind

Amkor plans to construct a $2 billion superior packaging facility close to Peoria, Arizona, to check and assemble chips produced by TSMC at its Fab 21 close to Phoenix, Arizona. The firm signed a MOU that provides $400 million in direct funding and entry to $200 million in loans below the CHIPS & Science Act. In addition, the corporate plans to reap the benefits of a 25% funding tax credit score on eligible capital expenditures.

Set to be strategically positioned close to TSMC’s upcoming Fab 21 advanced in Arizona, Amkor’s Peoria facility will occupy 55 acres and, when totally accomplished, will function over 500,000 sq. ft (46,451 sq. meters) of cleanroom house, greater than twice the dimensions of Amkor’s superior packaging website in Vietnam. Although the corporate has not disclosed the precise capability or the precise applied sciences the power will help, it’s anticipated to cater to a variety of industries, together with automotive, high-performance computing, and cell applied sciences. This suggests the brand new plant will provide various packaging options, together with conventional, 2.5D, and 3D applied sciences.

Amkor has collaborated extensively with Apple on the imaginative and prescient and preliminary setup of the Peoria facility, as Apple is slated to be the power’s first and largest buyer, marking a major dedication from the tech big. This partnership highlights the significance of the brand new facility in reinforcing the U.S. semiconductor provide chain and positioning Amkor as a key companion for firms counting on TSMC’s manufacturing capabilities. The challenge is predicted to generate round 2,000 jobs and is scheduled to start operations in 2027. 

SK hynix to Build HBM4 within the U.S.

This week SK hynix additionally signed a preliminary settlement with the U.S. authorities to obtain as much as $450 million in direct funding and $500 million in loans to construct a sophisticated reminiscence packaging facility in West Lafayette, Indiana. 

The proposed facility is scheduled to start operations in 2028, which implies that it’s going to assemble HBM4 or HBM4E reminiscence. Meanwhile, DRAM gadgets for prime bandwidth reminiscence (HBM) stacks will nonetheless be produced in South Korea. Nonetheless, packing completed HBM4/HBM4E within the U.S. and probably integrating these reminiscence modules with high-end processors is an enormous deal.

In addition to constructing its packaging plant, SK hynix plans to collaborate with Purdue University and different native analysis establishments to advance semiconductor expertise and packaging improvements. This partnership is meant to bolster analysis and growth within the area, positioning the power as a hub for AI expertise and expert employment.

Sources: AmkorSK hynix



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