U.S. Secures $1.5 Billion CHIPS Act Deals with Amkor and SK Hynix for Chip Packaging Facilities

In an exciting development under the CHIPS & Science Act, the U.S. has laid down a robust financial foundation to beef up its domestic semiconductor production. With tens of billions in grants and loans earmarked for chip-making giants like Intel, Samsung, and TSMC, the plan aims to boost the nation’s semiconductor capabilities dramatically over the next few years. Yet, a notable gap remains as the bulk of chip testing, assembling, and packaging occurs primarily in Asia. To fill this void, the U.S. government has recently inked deals worth approximately $1.5 billion with Amkor and SK hynix to establish chip packaging plants on American soil.

### Amkor’s Plans with an Eye on Apple

Amkor is gearing up to invest $2 billion in a cutting-edge packaging plant near Peoria, Arizona. This facility will handle chips produced at TSMC’s Fab 21, located nearby in Phoenix. Through a signed MOU, Amkor will benefit from $400 million in direct funding and the option to access $200 million in loans, all part of the CHIPS & Science Act. Additionally, the firm will utilize a 25% investment tax credit on qualifying capital expenses.

Strategically set up adjacent to TSMC’s forthcoming Fab 21 in Arizona, Amkor’s site will span 55 acres, featuring over 500,000 square feet of cleanroom space—more than double the size of its advanced packaging operation in Vietnam. While specific details about the facility’s capacity and technologies remain under wraps, it is anticipated to serve a broad spectrum of sectors including automotive, high-performance computing, and mobile technologies. This suggests a versatile array of packaging methods such as traditional, 2.5D, and 3D options.

Amkor’s collaboration with Apple has been pivotal to the vision and establishment of this new site, with Apple set to be its first and largest client, underscoring the project’s significance. This partnership strengthens the U.S. semiconductor supply chain, positioning Amkor as a vital ally to companies dependent on TSMC’s manufacturing prowess. The facility is expected to create approximately 2,000 jobs, kicking off operations in 2027.

### SK hynix’s Advanced Memory Venture

In another significant move, SK hynix has preliminarily agreed with the U.S. government to secure up to $450 million in direct funding and $500 million in loans aimed at constructing an advanced memory packaging facility in West Lafayette, Indiana.

Scheduled to begin operations in 2028, this facility will handle assembly for next-gen HBM4 or HBM4E memory. While DRAM for these high-bandwidth memory stacks will still be produced in South Korea, finalizing HBM4/HBM4E modules in the U.S. and potentially coupling them with top-tier processors represents a substantial leap forward.

SK hynix intends not only to build a state-of-the-art packaging plant but also to foster innovation in partnership with Purdue University and other regional research entities. This collaborative effort is designed to propel semiconductor technology and packaging breakthroughs, establishing the facility as a cornerstone for AI advancements and skilled job creation.

Sources: Amkor, SK hynix