US grants $400 million to Amkor for Arizona semiconductor plant
The announcement comes amid discussions of potential aid cuts for US chip manufacturers due to oversubscribed funding requests.
The US Commerce Department announced plans to grant Amkor Technology up to $400 million to support the construction of a $2 billion advanced semiconductor packaging facility in Arizona. Once operational, the plant will be the largest of its kind in the US, packaging and testing millions of chips for applications such as autonomous vehicles, 5G/6G, and data centers.
Apple is set to be the first and largest customer, with the chips being produced at a nearby TSMC facility. Advanced packaging is a sophisticated method of integrating multiple chips with various functions into a densely interconnected package. Commerce Secretary Gina Raimondo emphasised that this investment will help meet the growing demand for AI chips.
Raimondo highlighted that the chips Amkor will package are crucial for future technologies that will significantly impact global economic and national security. This move comes amid discussions of aid cuts for US chip manufacturers due to oversubscription of funding requests.
About author
DW Team
The GIP Digital Watch Observatory team, consisting of over 30 digital policy experts from around the world, excels in the fields of research and analysis on digital policy issues. The team is backed by the creative prowess of Creative Lab Diplo and the technical expertise of the Diplo tech team.