U.S. Secures $1.5B CHIPS Act Deals With Amkor and SKhynix for Chip Packaging Facilities

Under the CHIPS & Science Act, the U.S. government has committed billions of dollars in grants and loans to top chipmakers like Intel, Samsung, and TSMC. The goal? To significantly ramp up the nation’s semiconductor production over the next few years. Yet, there’s always been a piece of the puzzle missing: most chips get tested, assembled, and packaged abroad in Asia, leaving the American supply chain a bit unfinished. To tackle this gap in domestic chip production, the U.S. recently inked agreements totaling around $1.5 billion with Amkor and SK hynix. These deals aim to support their plans to establish chip packaging facilities right here in the States.

### Amkor’s Big Move with Apple

Amkor is gearing up to build a massive $2 billion advanced packaging facility near Peoria, Arizona. This site will be closely tied to TSMC’s Fab 21, just over in Phoenix. With a Memorandum of Understanding in place, Amkor stands to gain $400 million in direct funds and access to $200 million more in loans through the CHIPS & Science Act. On top of that, they plan to utilize a 25% tax credit on eligible capital investments.

Positioned strategically near TSMC’s Arizona complex, the new Peoria facility will spread across 55 acres. Once complete, it’ll boast more than 500,000 square feet of cleanroom space—over double the size of Amkor’s advanced packaging spot in Vietnam. While Amkor hasn’t spilled all the details on the facility’s tech capacities, it’s expected to cater to sectors like automotive, high-performance computing, and mobile technologies. This indicates the plant will offer an array of packaging solutions, from traditional to 2.5D and 3D technologies.

Amkor’s collaboration with Apple plays a crucial role in shaping the Peoria facility. Apple will be the flagship customer, underscoring a deep commitment from both parties. This partnership is a testament to the facility’s role in strengthening the U.S. semiconductor supply chain and positioning Amkor as a vital ally to companies leveraging TSMC’s manufacturing prowess. The endeavor should create roughly 2,000 jobs, with operations slated to kick off in 2027.

### SK hynix’s Memory Game in Indiana

Meanwhile, SK hynix has also sealed a tentative agreement with the U.S. government. They’re set to receive up to $450 million in direct funding and $500 million in loans for an advanced memory packaging facility in West Lafayette, Indiana.

Set to begin operations in 2028, this facility will likely focus on assembling HBM4 or HBM4E memory, while the DRAMs for these high-bandwidth memory stacks will continue to be produced in South Korea. The prospect of completing HBM4/HBM4E packaging in the U.S., and possibly integrating these modules with high-performance processors, is quite significant.

Beyond just building the plant, SK hynix aims to team up with Purdue University and other local research entities to push forward semiconductor tech and packaging innovations. This partnership seeks to enhance R&D in the area, turning the facility into a hub for AI technologies and skilled jobs.

Sources: Amkor, SK hynix