The Department of Commerce (DoC) announced today it has reached a preliminary agreement with Amkor Technology for up to $400 million in proposed direct funding under the CHIPS and Science Act to support cutting-edge advanced packaging technology.
President Biden signed the CHIPS and Science Act into law in August 2022, making up to $52 billion of funding available to incentivize semiconductor makers to establish new manufacturing operations in the United States.
The preliminary funding deal would support Amkor’s investment of about $2 billion and 2,000 jobs in a greenfield project in Peoria, Ariz. This project will provide full end-to-end advanced packaging for the world’s most advanced semiconductors to be used in high-performance computing, AI, communications, and more.
“One of the fundamental goals of the CHIPS and Science Act is creating an advanced packaging ecosystem in the U.S. to ensure full start to finish chip production occurs domestically. Advanced packaging drives chip innovation at all levels, and because of President Biden’s leadership, the U.S. will have a robust domestic footprint in this critical technology,” said Secretary of Commerce Gina Raimondo.
“The leading-edge chips that will be packaged right here in Arizona are foundational to technologies of the future that will define global economic and national security for decades to come,” Raimondo added. “Thanks to the Biden-Harris administration, and Amkor’s investments in the U.S., this proposed funding would enhance our supply chain security, create thousands of jobs in Arizona, and further position the United States to out-innovate, out-build, and out-compete the rest of the world.”
Advanced packaging combines multiple semiconductor chips into a single electronic package – blurring the line between chip and package. This process offers numerous benefits such as protecting the chip, facilitating reliable inter-chip communication, increasing chip reuse, and potentially decreasing costs.
However, the vast majority of advanced packaging manufacturing currently takes place in Asia.
With the proposed funding, Amkor is expected to utilize the most advanced technology – such as 2.5D technology and other next-generation technologies – at its advanced packaging and test facility in Arizona.
When fully operational, the company will package and test millions of leading-edge chips serving autonomous cars, 5G/6G smartphones, and large-scale data centers.
“This announcement marks another significant milestone for President Biden and Vice President Harris’s CHIPS & Science Act – dramatically expanding advanced packaging capabilities in the United States,” said National Economic Advisor Lael Brainard. “Developing a comprehensive semiconductor ecosystem here in America, from R&D through packaging, will strengthen our technological leadership and create thousands of good paying jobs.”
