The Biden-Harris Administration announced that the U.S. Department of Commerce and Amkor Technology, Inc. have signed a non-binding preliminary memorandum of terms (PMT) to provide up to $400 million in proposed direct funding under the CHIPS and Science Act. President Biden signed this bipartisan act as part of his Investing in America agenda to revitalize semiconductor manufacturing in the United States, strengthen the domestic supply chain, create jobs, and support future industries.
This proposed funding would support Amkor’s investment of approximately $2 billion and 2,000 jobs in a greenfield project in Peoria, Arizona. The project aims to provide full end-to-end advanced packaging for high-performance computing, artificial intelligence, communications, and automotive applications.
With this investment in Amkor—the largest U.S.-based outsourced semiconductor assembly and test company (OSAT)—the administration aims to bolster resilience in key advanced packaging technologies. This will enhance U.S. economic and national security by ensuring a reliable domestic advanced packaging ecosystem.
U.S. Secretary of Commerce Gina Raimondo stated: “One of the fundamental goals of the CHIPS and Science Act is creating an advanced packaging ecosystem in the U.S. to ensure full start-to-finish chip production occurs domestically.” She added that these chips are foundational for future technologies that will define global economic and national security.
National Economic Advisor Lael Brainard remarked: “Developing a comprehensive semiconductor ecosystem here in America...will strengthen our technological leadership and create thousands of good-paying jobs.”
Under Secretary of Commerce for Standards and Technology Laurie E. Locascio emphasized: “Investments in semiconductors will not succeed without investments in advanced packaging.”
Giel Rutten, Amkor’s President and CEO, said: “Amkor is proud to be the leading advanced packaging and test OSAT headquartered in the US...and we look forward to providing our customers with domestic advanced packaging and test capabilities.”
Amkor's facility is expected to utilize cutting-edge technology such as 2.5D technology essential for AI and high-performance computing applications.
The company plans to claim up to 25% Investment Tax Credit from the Department of Treasury on qualified capital expenditures. In addition to direct funding, approximately $200 million in proposed loans may be available under the PMT.
The CHIPS Program Office outlines key terms for potential incentives awards through PMTs after satisfactory merit review completion. The award amounts are subject to due diligence processes.
About CHIPS for America
Two years post-passage of the CHIPS Act, over $30 billion has been allocated for domestic factory construction with billions more invested in research—unlocking over $300 billion private investment—and creating over 100,000 jobs including many not requiring college degrees.
Visit www.chips.gov to learn more.
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