U.S. Finalizes $1.5 Billion CHIPS Act Deals with Amkor and SKhynix for Chip Packaging Facilities

The CHIPS & Science Act has paved the way for a massive boost in the U.S. semiconductor industry, as the government has pumped tens of billions into grants and loans for major chip makers like Intel, Samsung, and TSMC. This initiative aims to significantly expand domestic chip production. Yet, while much of the manufacturing happens on home soil, most chips still see final testing, assembly, and packaging in Asia, leaving a crucial gap in the American supply chain. To bridge this, recent weeks saw the U.S. government forming agreements totaling approximately $1.5 billion with companies like Amkor and SK hynix. These partnerships are set to pave the way for new chip packaging facilities within the United States.

### Amkor Sets Sights on Advanced Packaging with Apple Partnership

Amkor is gearing up to establish a cutting-edge packaging facility worth $2 billion near Peoria, Arizona, aimed at testing and assembling chips from TSMC’s Fab 21 in nearby Phoenix. Thanks to a memorandum of understanding, Amkor will benefit from $400 million in direct funding, coupled with $200 million in loans under the CHIPS & Science Act. Moreover, they’re tapping into a 25% investment tax credit for eligible capital expenses.

Strategically located near TSMC’s future Fab 21 site, Amkor’s Peoria plant will span 55 acres and boast over 500,000 square feet of pristine cleanroom space when complete—more than doubling the size of their current facility in Vietnam. While specifics about its capacity and tech capabilities remain under wraps, the facility is anticipated to serve industries ranging from automotive to high-performance computing and mobile tech. This diversity suggests the plant will offer a variety of packaging technologies, including traditional methods as well as advanced 2.5D and 3D solutions.

Apple, a significant collaborator in the planning phase, is poised to be Amkor’s major initial customer. This collaboration underscores the facility’s critical role in strengthening the U.S. semiconductor supply chain and positions Amkor as a vital ally for companies utilizing TSMC’s manufacturing prowess. The project is expected to create approximately 2,000 jobs and kick off operations in 2027.

### SK hynix’s Ambitious U.S. Venture for HBM4

Meanwhile, SK hynix is also making waves, having struck a preliminary deal with the U.S. government to secure up to $450 million in direct funding along with $500 million in loans to construct an advanced memory packaging plant in West Lafayette, Indiana.

Set to commence operations in 2028, this facility will focus on assembling HBM4 or HBM4E memory. Despite the DRAM chips for these high-bandwidth memory stacks still being produced in South Korea, finalizing the packing process in the United States—and potentially integrating these memory modules with top-tier processors—marks a significant shift.

Furthering their commitment, SK hynix plans to collaborate with Purdue University and other regional research bodies to push the envelope on semiconductor tech and packaging innovation. This partnership aims to spotlight the facility as a central hub for AI technology and high-skilled job opportunities in the area.

Sources include insights from both Amkor and SK hynix.