US To Invest USD 400 Mln In Semiconductor Manufacturing

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, July 26 (KUNA) -- The US Department of Commerce said Friday that it signed a non-binding preliminary memorandum of terms (PMT) with Amkor Technology, Inc., to provide up to USD 400 million in proposed direct funding under the CHIPS and Science Act.
President Biden signed the bipartisan CHIPS and Science Act, a key component of his Investing in America agenda, to revitalize Semiconductor manufacturing in America while strengthening our domestic supply chain, creating good-paying jobs, and supporting investments in the industries of the future.
This proposed funding would support Amkor's investment of approximately USD two billion and 2,000 jobs in a greenfield project in Peoria, Arizona, according to a DoC statement.
The project will provide full end-to-end advanced packaging for the world's most advanced semiconductors for applications in high-performance computing, artificial intelligence, communications, and automotive end markets.
With this proposed investment in Amkor, the largest US-based outsourced semiconductor assembly and test company (OSAT), the Biden-Harris Administration would help strengthen resilience in key advanced packaging technologies, which will strengthen US economic and national security by ensuring a reliable domestic advanced packaging ecosystem, supporting leading-edge clusters, and helping meet the growing demand for AI chips.
Accordingly, companies such as TSMC, Apple, and GlobalFoundries - which power the world's most advanced technologies - will be able to package and test their essential chips domestically, enabling the full end-to-end cycle of the chip manufacturing process to occur in the United States.
As chip design approaches the technical limits of Moore's Law, which posits that the number of transistors on a semiconductor doubles every two years, advanced packaging is widely believed to be the next frontier of innovation in the industry through its ability to drive enhanced power and performance.
Consequently, as a result of proposed CHIPS funding, the US will significantly expand domestic capacity for this critical piece of the semiconductor supply chain, further strengthening US technology leadership.
Commenting on the deal, said US Secretary of Commerce Gina Raimondo said, "One of the fundamental goals of the CHIPS and Science Act is creating an advanced packaging ecosystem in the US to ensure full start to finish chip production occurs domestically."
"Advanced packaging drives chip innovation at all levels, and because of President Biden's leadership, the US will have a robust domestic footprint in this critical technology," she noted.
"The leading-edge chips that will be packaged right here in Arizona are foundational to technologies of the future that will define global economic and national security for decades to come.
"Thanks to the Biden-Harris Administration, and Amkor's investments in the US, this proposed funding would enhance our supply chain security, create thousands of jobs in Arizona, and further position the United States to out-innovate, out-build, and out-compete the rest of the world," she added. (end)
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