CHIPS Act: $1.5B for Amkor & SKhynix Plants
- government is allocating approximately $1.5 billion to Amkor and SK hynix to establish chip packaging facilities within the United States.
- The funding is part of the broader CHIPS & Science Act, which has already provided billions in grants and loans to major chip manufacturers like Intel, Samsung, and...
- Amkor plans to construct a $2 billion advanced packaging facility near Peoria, Ariz., adjacent to TSMC's Fab 21. The agreement includes $400 million in direct funding and access...
the U.S. government is injecting $1.5 billion into Amkor and SK hynix to bolster domestic chip packaging, a pivotal step toward a resilient semiconductor supply chain. These investments, fueled by the CHIPS Act, aim to bring advanced testing, assembly, and packaging within U.S. borders, reducing reliance on overseas facilities. Amkor’s Arizona facility, with Apple as a key client, will receive ample funding and is set to create approximately 2,000 jobs with operations commencing in 2027, offering diverse packaging solutions. SK hynix will establish a plant in Indiana, focusing on advanced memory packaging, particularly HBM4 or HBM4E. News Directory 3 reports this will fortify the industry and spur innovation. Find out what the impact will be.
U.S. Boosts Semiconductor production with Chip Packaging Investments
Updated June 1, 2025
The U.S. government is allocating approximately $1.5 billion to Amkor and SK hynix to establish chip packaging facilities within the United States. This move aims to complete the domestic semiconductor supply chain, which has lagged behind in testing, assembly, and packaging compared to chip manufacturing.
The funding is part of the broader CHIPS & Science Act, which has already provided billions in grants and loans to major chip manufacturers like Intel, Samsung, and TSMC to expand their U.S.-based production.
Amkor plans to construct a $2 billion advanced packaging facility near Peoria, Ariz., adjacent to TSMC’s Fab 21. The agreement includes $400 million in direct funding and access to $200 million in loans under the CHIPS Act, along with a 25% investment tax credit. The 55-acre facility will house over 500,000 square feet of cleanroom space and is expected to create about 2,000 jobs, with operations beginning in 2027.
Apple is slated to be Amkor’s primary customer at the Peoria facility.The plant will offer diverse packaging solutions, including customary, 2.5D, and 3D technologies, catering to automotive, high-performance computing, and mobile technology sectors.
SK hynix also secured a preliminary agreement with the U.S. government for up to $450 million in direct funding and $500 million in loans. These funds will support the construction of an advanced memory packaging facility in West Lafayette, Ind.
The SK hynix facility is projected to begin operations in 2028, focusing on assembling HBM4 or HBM4E memory. While DRAM devices for HBM stacks will still be produced in South Korea, packaging finished HBM in the U.S. marks a significant step. SK Hynix also intends to collaborate with Purdue University to advance semiconductor technology.
What’s next
These investments are expected to significantly strengthen the U.S.semiconductor industry, reducing reliance on Asian packaging facilities and fostering innovation in AI technology and skilled employment.