US cuts funding for Amkor packaging plant, Samsung fab
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The US government has confirmed nearly $5bn for Samsung fabs in Texas and $407m for Amkor in Arizona for packaging, both cut by 20% since the original announcements.
The $407m funding for Amkor Technology Arizona, a subsidiary of Amkor Technology, will directly support Amkor’s investment of approximately $2bn in a greenfield advanced packaging and test facility in Peoria, Arizona. This is down from the $600m in the preliminary agreement in July.
Amkor is the largest U.S.-based outsourced semiconductor assembly and test company (OSAT) and the funding will create an estimated 2,000 manufacturing jobs, and, at the peak of construction, more than 2,000 construction jobs.
Companies in the semiconductor ecosystem have announced 90 projects across 28 US states, attracting hundreds of billions of dollars in private investments since the CHIPS Act was introduced. These announced projects will create more than 58,000 jobs in the semiconductor ecosystem and support hundreds of thousands of additional US jobs throughout the U.S. economy says the Semiconductor Industry Association. However funding under the act is expect to reduce under the new Trump administration.
“Advanced packaging is a critical part of the semiconductor supply chain, and bringing this capability to the U.S. will mean chips don’t need to be sent overseas after they have been manufactured,” said U.S. Secretary of Commerce Gina Raimondo. “Thanks to Amkor’s investment in Arizona, the U.S. will have the world’s most leading-edge packaging technologies for the first time, enhancing domestic supply chain resilience and establishing the U.S. as a global technology leader for decades to come. Amkor’s project will support critical industries, such as AI and high-performance compute, and create thousands of high-paying jobs.”
“We are pleased to announce that we have finalized the terms for receiving CHIPS Act funding to establish an advanced packaging and test facility in Arizona,” said Giel Rutten, President and CEO of Amkor. “This new facility will serve as a critical cornerstone in establishing a robust semiconductor manufacturing supply chain within the United States. This milestone would not have been possible without the invaluable support from the Department of Commerce and our dedicated partners across federal, state, and local agencies.”
Samsung has also confirmed it is to receive up to $4.745 billion in direct funding under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication facilities. This follows the previously signed preliminary memorandum of terms, announced on April 15, 2024, that was looking at $6.4bn of funding and the completion of the Department’s due diligence.
The funding will support Samsung’s investment of over $37bn for two new logic fabs and an R&D fab in Taylor, as well as an expansion to the existing Austin facility.
“With this investment in Samsung, the U.S. is now officially the only country on the planet that is home to all five leading-edge semiconductor manufacturers. This is an extraordinary achievement, which will ensure we have a steady, domestic supply of the most advanced semiconductors that are essential to AI and national security, while also creating tens of thousands of good-paying jobs and transforming communities across the country,” said U.S. Secretary of Commerce Gina Raimondo.
This supports approximately 12,000 construction jobs and more than 3,500 manufacturing jobs within the next five years.
“With nearly 30 years of semiconductor manufacturing experience in the United States, we are proud and grateful for the long-standing relationships we have established with our American partners and customers, as well as communities across Texas,” said Young Hyun Jun, Vice Chairman and CEO of Device Solutions Division at Samsung Electronics. “Our agreement with the US Government today under the CHIPS and Science Act represents another milestone as we continue to invest and build a state-of-the-art semiconductor ecosystem in the US.”
“Samsung’s ambitious semiconductor manufacturing and R&D investments in Texas, complemented by the CHIPS incentives, mark an important step forward for leading-edge chip production and innovation in America. We commend Samsung for making these bold investments, which will create tens of thousands of jobs and drive significant economic growth, and we applaud the U.S. Commerce Department for continuing to promote critical CHIPS incentives,” said SIA President and CEO John Neuffer.
www.samsung.com; www.amkor.com
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