The U.S. Commerce Department has announced plans to allocate $75 million to Absolics, a semiconductor packaging provider and affiliate of SKC Co., which is part of South Korea’s SK Group. This funding is designated for the construction of a 120,000-square-foot facility in Covington, Georgia. The facility will produce advanced materials essential to the semiconductor industry, representing a critical step in reinforcing the United States’ semiconductor supply chain.
Absolics’ new facility will be groundbreaking as the first commercial site to support the semiconductor supply chain with innovative advanced packaging materials, specifically glass substrates. These substrates are pivotal because they allow the integration of processing and memory chips into a single device. This integration significantly enhances computing efficiency and speed, which is crucial for high-performance computing and cutting-edge defense applications.
The construction and subsequent operation of this facility are expected to create a substantial number of jobs, including 1,000 construction positions and 200 roles in manufacturing and research and development (R&D). These employment opportunities will bolster the local economy in Covington and contribute to the broader goal of revitalizing the U.S. semiconductor manufacturing sector.
This initiative is part of a larger strategic effort funded by the U.S. government’s $52.7 billion semiconductor manufacturing and subsidy program. The program aims to fortify domestic semiconductor production capabilities, reduce reliance on foreign suppliers, and enhance national security through technological advancements.
Jun Rok Oh, CEO of Absolics, emphasized the importance of the funding, stating that it will enable the company to fully commercialize its pioneering glass substrate technology. This technology is expected to significantly improve the performance of leading-edge chips used in artificial intelligence (AI) and data centers. The advanced packaging materials developed at the Georgia facility will thus play a vital role in the next generation of computing technologies.
This investment in Absolics is part of a broader trend of substantial financial commitments to the U.S. semiconductor industry. For instance, SK Hynix recently announced a $3.87 billion investment to build an advanced packaging plant and R&D facility in Indiana focused on AI products. Similarly, Amkor Technology plans to invest $2 billion in Arizona to establish a packaging and test facility for Apple, working in collaboration with the Taiwanese chipmaker TSMC.
The U.S. Commerce Department has made advanced packaging a priority to diversify the market, which is currently dominated by manufacturers in Asia. U.S. Commerce Secretary Gina Raimondo has stressed the necessity of developing multiple high-volume advanced packaging facilities within the U.S. to enhance the country’s competitive edge and ensure a robust domestic supply chain.
In November, the Commerce Department outlined its plan to spend $3 billion to support advanced packaging initiatives. This move aligns with the department’s broader strategy to boost U.S. manufacturing capabilities and secure the supply chain for critical technologies.
Furthermore, the Commerce Department has announced several major proposed awards from the semiconductor program. These include significant grants such as $8.5 billion for Intel, $6.6 billion for TSMC, $6.4 billion for South Korea’s Samsung, and $6.1 billion for Micron Technology, a leading memory chip maker. These investments highlight the comprehensive approach the U.S. government is taking to ensure the country remains at the forefront of semiconductor technology and manufacturing.
Overall, the investments and developments in the U.S. semiconductor industry underscore a robust and coordinated effort to enhance the nation’s technological infrastructure. These initiatives aim to meet future demands, reduce dependency on foreign supply chains, and position the U.S. as a leader in semiconductor technology and innovation. The collaboration between government, industry, and academia will be crucial in driving these advancements and ensuring long-term competitiveness in the global semiconductor market.