Under the CHIPS & Science Act, the U.S. has injected tens of billions into the pockets of top chip powerhouses such as Intel, Samsung, and TSMC. This funding aims to turbocharge America’s semiconductor manufacturing capabilities over the coming years. However, a hiccup remains: most chips are still tested, assembled, and packaged across Asia, leaving a noticeable gap in the American supply chain. To mend this, the U.S. government recently inked memorandums of understanding worth roughly $1.5 billion with Amkor and SK hynix, aiming to kickstart the building of chip packaging facilities stateside.
### Amkor to Build Advanced Packaging Facility with Apple in Mind
Amkor is gearing up to set a $2 billion advanced packaging facility into motion near Peoria, Arizona. This setup is designed to test and assemble chips churned out by TSMC at their nearby Fab 21 in Phoenix. Thanks to a freshly signed MOU, Amkor is poised to receive $400 million in direct funding alongside $200 million in loans courtesy of the CHIPS & Science Act. Moreover, they’re also lined up to snag a 25% investment tax credit on eligible capital expenditures.
Situated strategically near TSMC’s forthcoming Fab 21 hub, the Peoria facility will spread across 55 acres and, once completed, boast over 500,000 square feet of cleanroom space—more than twice the size of Amkor’s site in Vietnam. While details on the facility’s capacity and tech haven’t been divulged, it’s anticipated to cater to diverse sectors like automotive, high-performance computing, and mobile tech. This predicts a spectrum of packaging solutions, embracing traditional, 2.5D, and 3D technologies.
Apple’s involvement has been pivotal from the get-go, shaping the vision and setup for the Peoria site. As the expected inaugural and primary client, Apple’s engagement signals the facility’s critical role in shoring up the U.S. semiconductor supply network, affirming Amkor’s stature as a pivotal ally for firms relying on TSMC’s manufacturing expertise. The project is on track to ignite approximately 2,000 jobs, aiming to kick off operations in 2027.
### SK hynix to Build HBM4 in the U.S.
SK hynix is also in the mix, having inked a preliminary agreement with the U.S. government to scoop up to $450 million in direct funding paired with $500 million in loans for setting up a cutting-edge memory packaging facility in West Lafayette, Indiana.
The slated launch for this facility is 2028, positioning it for assembling HBM4 or HBM4E memory. While DRAM devices for high-bandwidth memory stacks will continue rolling out from South Korea, packing finished HBM4/HBM4E within the U.S.—and potentially integrating these modules with high-performance processors—is quite significant.
Beyond construction, SK hynix is plotting collaborations with Purdue University and other local research bodies to push semiconductor tech and packaging breakthroughs forward. This collaboration intends to bolster R&D in the area, aspiring to make the facility a nucleus for AI tech and skilled employment opportunities.
