The Biden-Harris Administration announced that the U.S. Department of Commerce and Absolics, an affiliate of Korea-based SKC, have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $75 million in direct funding under the CHIPS and Science Act. This investment aims to support the construction of a 120,000 square-foot facility in Covington, Georgia, and the development of substrates technology for semiconductor advanced packaging.
U.S. Secretary of Commerce Gina Raimondo stated, “An important part of the success of President Biden’s CHIPS program is ensuring the United States is a global leader in every part of the semiconductor supply chain, and the advanced semiconductor packaging technologies Absolics is working on will help to achieve that goal while also creating hundreds of jobs in Georgia.” She added that this proposed investment would accelerate innovation and advance U.S. technological leadership in semiconductor manufacturing.
This initiative would support over an estimated 1,000 construction jobs and approximately 200 manufacturing and R&D jobs in Covington. It also aims to enhance innovation capacity at Georgia Institute of Technology (Georgia Tech), which collaborates with Absolics through its 3D Packaging Research Center.
Chief Economist Heather Boushey remarked, “Since Day One of this Administration, President Biden has committed to growing the economy from the middle-out and bottom-up... This new agreement with Absolics is going to help us meet the demand for the technology of tomorrow while supporting good-paying jobs in Georgia today.”
Absolics' glass substrates are expected to play a crucial role in increasing chip performance by reducing power consumption and system complexity. Currently concentrated in Asia, this market could see expanded domestic supply due to this proposed investment.
Under Secretary Laurie Locascio emphasized the importance: “Creating a broad-based advanced packaging ecosystem is crucial to revitalizing the U.S. semiconductor industry... Supporting innovation can improve performance and reduce power needs in advanced packaging technologies critical for AI capabilities and high-performance computing.”
Absolics CEO Jun Rok Oh highlighted their commitment: “With this proposed CHIPS funding, Absolics would be able to fully commercialize our pioneering glass substrate technology... Our new facility will not only enhance our ability but also create high-skilled jobs and drive innovation through our partnership with Georgia Tech.”
The Department may offer applicants a PMT after satisfactory completion of merit review processes. The announcement with Absolics marks the ninth PMT announcement under the CHIPS Act, with more expected throughout 2024.
CHIPS for America is part of President Biden’s economic plan aiming to invest domestically, stimulate private sector investment, create good-paying jobs, manufacture more within U.S., and revitalize communities left behind.
For more information about CHIPS for America visit https://www.chips.gov.
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