The Department of Commerce’s (DOC) CHIPS and Science Act continues to fund semiconductor manufacturing investments even as the year ends.
With so many funding initiatives happening in 2024, this isn’t much of a surprise, but it will be interesting to see where the CHIPS Acts goes from here as a new administration will take over the country in less than a month. There have been calls to cut government spending and some Congressmen have called on examining the CHIPS Act as potential fodder to be cut.
But before that happens, the DOC finalized the direct funding for semiconductor manufacturing fab and packaging facilities from Samsung, Amkor Technology and Texas Instruments.
Samsung
Samsung Electronics received direct funding of up to $4.745 billion from the CHIPS Act. The award follows the original preliminary funding announced in April of 2024. The funding will support Samsung’s reported $37 billion in the coming years to build up its semiconductor manufacturing presence in Tyler, Texas.
The Korean electronics giant originally planned to build just one fab in Tyler, Texas, investing about $17 billion in the fab. However, the company amended what it planned to build to include a second fab at the location and an investment of $37 billion. It could double or even triple this number of fabs in Texas over the next few decades, but nothing has been confirmed.
TI
Texas Instruments plans to build three 300 mm fabs over the next few years in Texas and Utah. It has received up to $1.61 billion in direct funding through the CHIPS Act to help it complete the projects.
The funding will support TI’s private funding of $18 billion and will help to create more than 2,000 manufacturing jobs and thousands of construction jobs over time.
Amkor
The finalized funding for Amkor will be up to $407 million through the CHIPS Act, which will be used to fund about $2 billion in a greenfield advanced packaging and test facility in Peoria, Arizona.
About one year ago, Amkor announced it would build the $2 billion facility which it called the largest outsourced packaging facility to be built in the U.S.
The facility will create an estimated 2,000 manufacturing jobs and more than 2,000 construction jobs.
The packaging and test facility will be built on 55 acres of land with 500,000 square feet clean room space. The space will provide leading-edge packaging and testing of semiconductors for markets like high-performance computing, automotive and communications.