Amkor Technology receives $600 million in chip subsidies

Latest update time：2024-07-27

Reads：

????If you hope to meet more often, please mark the star ?????? and add it to your collection~

Source: The content is compiled from tomshardware by Semiconductor Industry Observer (ID: i cba nk), thank you.

According to Bloomberg, Amkor Technology, one of the world's largest outsourced semiconductor assembly and test (OSAT) suppliers, has signed a preliminary agreement with the US government to obtain funds for its new advanced chip assembly and test plant in Peoria, Arizona. The plant will cost $2 billion and will be located near TSMC's upcoming Fab 21 complex in Arizona to support customers who produce chips there.

Amkor’s new facility, located near Peoria, Arizona, is its first domestic packaging facility and will be the largest of its kind in the U.S. The company has reserved 55 acres of land for the facility, which, when completed and fully equipped, will include more than 500,000 square feet (46,451 square meters) of cleanroom space. To put that in context, that will be more than twice the cleanroom space at Amkor’s advanced chip packaging facility in Vietnam.

Amkor didn’t reveal the capacity of the upcoming campus (likely because that depends on a number of factors) or which technologies it will support (although both are in line with Apple’s requirements), but said the new packaging facility will serve automotive, high-performance computing, and mobile applications, so it’s reasonable to expect that it will offer a wide range of traditional, 2.5D, and 3D packaging technologies.

The initial phase of the plant in Peoria, Arizona, is expected to be operational within three years, or in 2027. The OSAT plant is adjacent to Intel's foundry and TSMC's plants in Arizona, allowing chip designers who use the aforementioned contract chipmakers to package their chips in the state. Essentially, Amkor's plant enables a strong domestic semiconductor supply chain and makes Amkor a key partner for fabless chip designers and foundries.

(Image source: Amkor)

In fact, Amkor and TSMC have a close partnership and work together to meet common customer needs in Taiwan. The collaboration is expected to ensure seamless integration of technology in the global manufacturing network, so companies such as Apple and Nvidia can produce and package the same chips in Taiwan and the United States. At the same time, considering the schedule of TSMC Fab 21 (the first phase will be online in 2025) and Amkor Arizona (operational start in 2027), the first batch of chips packaged by the OSAT company will be produced on TSMC's N5, N5P, N4, N4P and N4X production nodes.

Amkor has worked extensively with Apple on the strategic vision and initial manufacturing capabilities for the Peoria facility, which will package and test chips produced by the nearby TSMC facility for Apple. Apple will become the facility's first and largest customer once it opens. Apple has publicly supported Amkor's Arizona packaging facility and has said it will utilize TSMC and Amkor services in Arizona to manufacture and package its chips. Given the company's traditionally tight-lipped attitude, making a commitment to TSMC and Amkor is a major move, perhaps in an effort to convince the U.S. government to fund the projects.

(Image source: Amkor)

The plant will require a $2 billion investment and will create approximately 2,000 jobs. The agreement with the U.S. Department of Commerce outlines potential funding, including up to $400 million in direct financial support and a $200 million loan under the Chips and Science Act. In addition, Amkor plans to receive an investment tax credit covering up to 25% of its eligible capital expenditures.

Original link

https://www.tomshardware.com/tech-industry/us-to-boost-chip-packaging-capacity-with-chips-act-grant-amkor-to-receive-dollar600-million-for-advanced-chip- packaging-facility

Click here???? to follow us and lock in more original content

END

*Disclaimer: This article is originally written by the author. The content of the article is the author's personal opinion. Semiconductor Industry Observer reprints it only to convey a different point of view. It does not mean that Semiconductor Industry Observer agrees or supports this point of view. If you have any objections, please contact Semiconductor Industry Observer.

Today is the 3839th content shared by "Semiconductor Industry Observer" for you, welcome to follow.