Amkor and SKhynix Secure $1.5B Deals for Chip Packaging Plants, Boosting U.S. Tech Industry

The U.S. government invests billions to boost domestic chip production, partnering with companies like Amkor and SK hynix to establish advanced packaging facilities and strengthen the semiconductor supply chain.

The investments not only support the growth of leading chip manufacturers but also create job opportunities and drive economic growth in the United States.

Significant investment in the semiconductor industry to strengthen domestic production capabilities
Collaboration with leading chip manufacturers like Intel, Samsung, and TSMC to establish packaging facilities in the U.S.
Creation of job opportunities and economic growth in the United States

U.S. Government Invests Billions to Boost Domestic Chip Production

In a significant move to strengthen the country’s semiconductor production industry, the U.S. government has allocated tens of billions of dollars in grants and loans to leading chip manufacturers like Intel, Samsung, and TSMC. However, despite this investment, the American supply chain still faces a crucial gap as most chips are tested, assembled, and packaged in Asia. To address this issue, the U.S. government has recently signed memorandums of understanding worth approximately $1.5 billion with Amkor and SK hynix, supporting their efforts to establish chip packaging facilities within the United States.

Amkor, in partnership with Apple, is planning to construct a state-of-the-art packaging facility near Peoria, Arizona. With a total investment of $2 billion, this facility will primarily focus on testing and assembling chips produced by TSMC at its Fab 21 located near Phoenix, Arizona. Amkor has secured $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. Additionally, the company will benefit from a 25% investment tax credit on eligible capital expenditures.

Strategically positioned near TSMC’s upcoming Fab 21 complex, Amkor’s Peoria facility will cover 55 acres of land and boast over 500,000 square feet of cleanroom space. This is more than double the size of Amkor’s advanced packaging site in Vietnam. While specific details regarding capacity and supported technologies have not been disclosed, the facility is expected to cater to various industries, including automotive, high-performance computing, and mobile technologies. This suggests that the plant will offer a wide range of packaging solutions, including traditional, 2.5D, and 3D technologies.

Amkor’s collaboration with Apple underscores the tech giant’s commitment to being the facility’s first and largest customer. This partnership not only highlights the importance of reinforcing the U.S. semiconductor supply chain but also positions Amkor as a key partner for companies relying on TSMC’s manufacturing capabilities. The project is estimated to create around 2,000 jobs and is scheduled to commence operations in 2027.

Meanwhile, SK hynix has also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans. The funds will be utilized to establish an advanced memory packaging facility in West Lafayette, Indiana. This facility, expected to begin operations in 2028, will focus on assembling HBM4 or HBM4E memory modules. While DRAM devices for high bandwidth memory stacks will continue to be produced in South Korea, the packaging of finished HBM4/HBM4E in the U.S. and potential integration with high-end processors is a significant development.

In addition to constructing the packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to drive advancements in semiconductor technology and packaging innovations. This partnership aims to strengthen research and development in the region, positioning the facility as a hub for AI technology and skilled employment.

These initiatives mark a crucial step in bridging the gap in the U.S. chip supply chain, enhancing domestic production capabilities, and fostering innovation in the semiconductor industry.

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Background Information

About Apple:

Apple Inc., known for its iconic products, was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. The company has since revolutionized the technology landscape with innovations like the Macintosh computer, iPod, iPhone, iPad, and more. for its emphasis on design, user experience, and ecosystem integration, Apple's devices and software have made a profound impact on various industries. With a commitment to quality and innovation, Apple remains a global technology leader.

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About Intel:

Intel Corporation, a global technology leader, is for its semiconductor innovations that power computing and communication devices worldwide. As a pioneer in microprocessor technology, Intel has left an indelible mark on the evolution of computing with its processors that drive everything from PCs to data centers and beyond. With a history of advancements, Intel's relentless pursuit of innovation continues to shape the digital landscape, offering solutions that empower businesses and individuals to achieve new levels of productivity and connectivity.

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About Samsung:

Samsung, a South Korean multinational conglomerate, has established itself as a global leader in various industries, including electronics, technology, and more. Founded in 1938, Samsung's influence spans from smartphones and consumer electronics to semiconductors and home appliances. With a commitment to innovation, Samsung has contributed products like the Galaxy series of smartphones, QLED TVs, and SSDs that have revolutionized the way we live and work.

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About SK hynix:

SK Hynix is a important South Korean semiconductor company known for its innovative contributions to the global technology landscape. Specializing in the production of memory solutions, SK Hynix has played a vital role in shaping the semiconductor industry. With a commitment to research and development, they have continuously pushed the boundaries of memory technology, resulting in products that power various devices and applications.

Latest Articles about SK hynix

About TSMC:

TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.