U.S. Government to Fund Major Manufacturing Initiative
Amkor Technology has announced plans to develop a $2 billion advanced semiconductor packaging facility in Arizona, receiving up to $400 million in government funding. The U.S. Commerce Department confirmed this financial support, which aims to bolster the country’s semiconductor infrastructure. This state-of-the-art plant will focus on packaging and testing millions of chips for applications in data centers, 5G and 6G networks, and autonomous vehicles.
Apple to Become Primary Customer
The Arizona plant, leveraging chips produced by nearby Taiwanese manufacturer TSMC, will see Apple as its first and largest customer. Utilizing a sophisticated technique known as โadvanced packaging,โ the facility will combine multiple chips with different functionalities into compact packages. Commerce Secretary Gina Raimondo highlighted the importance of this investment, emphasizing its role in meeting the growing demand for AI technology. Amkor Technology noted that these chips are crucial for future technologies that will impact national security and the global economy.
Broader Semiconductor Investment and Incentives
In addition to Amkor’s funding, the U.S. Commerce Department plans to allocate another $200 million to the project, which is expected to qualify for a 25 percent investment tax credit. This initiative is part of a broader $39 billion subsidy program approved by Congress in 2022 to support American semiconductor and related component manufacturing. TSMC also announced an increase in its planned investment to $65 billion, with the establishment of a third chip manufacturing facility in Arizona by 2030. Furthermore, SK Group’s subsidiary, Absolics, is set to receive an additional $75 million, while SK Hynix intends to invest close to $4 billion in Indiana to develop an advanced packaging line for AI products.
