Amkor will build a chip packaging plant in the USA – $600 million in government subsidies have been allocated for this

Having more or less satisfied the needs of the largest chip manufacturers under the so-called “CHIP Act,” the US government began distributing financial assistance to smaller companies that are ready to take part in the revival of the American semiconductor industry. Chip packaging specialist Amkor will receive $600 million to build a plant in Arizona.

Image source: Amkor Technology

As you might guess, the choice of location for the construction of such an enterprise was not accidental. The Taiwanese company TSMC is building two advanced facilities in Arizona; Intel also has chip production facilities in the state, and both potential clients will need Amkor’s services. At the very least, it is known that the company’s production processes are being adapted to the needs of TSMC and Apple, from which it can be concluded that at new facilities in Arizona, this Taiwanese contractor will produce chips for Apple, and Amkor will be able to test and package them in the same state.

The Amkor Arizona facility in question is expected to open no later than 2027, and its footprint suggests plenty of room for expansion. The enterprise, worth about $2 billion, will be located on an area of ​​more than 22 hectares; the “clean rooms” alone will occupy 46,451 m2. That’s twice the size of one of Amkor’s Vietnam plants, and the Arizona factory under construction will not only be the company’s first in the United States, but also the largest in the country. It is expected that it will provide jobs for about 2,000 people.

Of the $600 million in funds allocated by the US authorities, only $400 million will be non-repayable subsidies, the remaining $200 million will be soft loans. In addition, the company will be able to take advantage of a 25% tax deduction on its capital expenditures. By global industry standards, the U.S. has very few chip packaging facilities—only 2% of the global total—while China has 38% of the industry. In terms of the amount of subsidies from the US authorities, Amkor will be in seventh place after Intel, TSMC, Samsung, Micron and GlobalFoundries. One of Intel’s projects is included in this rating as a separate line, and in general, the GlobalWafers company will receive a similar amount of subsidies of $400 million, it’s just that it is not entitled to preferential loans in excess of this amount.