U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Plants
Under the CHIPS & Science Act, the U.S. government provided tens of billions of dollars in grants and loans to the world's leading maker of chips, such as Intel, Samsung, and TSMC, which will significantly expand the country's semiconductor production industry in the coming years. However, most chips are typically tested, assembled, and packaged in Asia, which has left the American supply chain incomplete. Addressing this last gap in the government's domestic chip production plans, these past couple of weeks the U.S. government signed memorandums of understanding worth about $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the U.S.
Amkor to Build Advanced Packaging Facility with Apple in Mind
Amkor plans to build a $2 billion advanced packaging facility near Peoria, Arizona, to test and assemble chips produced by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a MOU that offers $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. In addition, the company plans to take advantage of a 25% investment tax credit on eligible capital expenditures.
Set to be strategically positioned near TSMC's upcoming Fab 21 complex in Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully completed, will feature over 500,000 square feet (46,451 square meters) of cleanroom space, more than twice the size of Amkor's advanced packaging site in Vietnam. Although the company has not disclosed the exact capacity or the specific technologies the facility will support, it is expected to cater to a wide range of industries, including automotive, high-performance computing, and mobile technologies. This suggests the new plant will offer diverse packaging solutions, including traditional, 2.5D, and 3D technologies.
Amkor has collaborated extensively with Apple on the vision and initial setup of the Peoria facility, as Apple is slated to be the facility's first and largest customer, marking a significant commitment from the tech giant. This partnership highlights the importance of the new facility in reinforcing the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies relying on TSMC's manufacturing capabilities. The project is expected to generate around 2,000 jobs and is scheduled to begin operations in 2027.
SK hynix to Build HBM4 in the U.S.
This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans to build an advanced memory packaging facility in West Lafayette, Indiana.
The proposed facility is scheduled to begin operations in 2028, which means that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will still be produced in South Korea. Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is a big deal.
In addition to building its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership is intended to bolster research and development in the region, positioning the facility as a hub for AI technology and skilled employment.
Semiconductors
Posted by The Techinical Support
SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out 
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
![Micron: U.S. Fabs Will Start Operating in 2026 - 2029 <p align="center"><a href="https://www.anandtech.com/show/21459/micron-u-s-fabs-will-start-operating-in-2026-2029"><img src="https://images.anandtech.com/doci/21459/micron-server-datacenter-general-generic-678_575px.jpg" alt="" /></a></p><p><p>When Micron announced plans to build two new fabs in the U.S. in 2022, the company vaguely said both would come online by the decade's end. Then, in 2023, it began to optimize its spending, which pushed production at these fabrication facilities. This week, the company outlined more precise timeframes for when its fabs in <a href="https://www.anandtech.com/show/17573/micron-breaks-ground-on-its-15-billion-euv-dram-fab-in-the-us">Idaho</a> and <a href="https://www.anandtech.com/show/17606/micron-announces-100-billion-us-fab-complex-a-20year-plan">New York</a> will start operations: this will happen from calendar 2026 to calendar 2029.</p>
<p>"<em>These fab construction investments are necessary to support supply growth for the latter half of this decade,</em>" a statement by Micron in its Q3 FY2024 financial results report <a href="https://investors.micron.com/static-files/a531c7f0-fca2-48f3-8f24-79c945aaa2d2">reads</a>. "<em>This Idaho fab will not contribute to meaningful bit supply until fiscal 2027 and the New York construction capex is not expected to contribute to bit supply growth until fiscal 2028 or later. The timing of future [wafer fab equipment] spend in these fabs will be managed to align supply growth with expected demand growth.</em>"</p>
<p>Micron's fiscal year 2027 starts in September 2026, so the new fab near Boise, Idaho, is set to start operations between September 2026 and September 2027. The company's fiscal 2028 starts in September 2027, so the fab will likely begin operations in calendar 2028 or later, probably depending on the demand for DRAM memory in the coming years. That said, Micron's U.S. memory fabs will begin operations between late 2026 and 2029, which aligns with the company's original plans. </p>
<p>Construction of the fab in Idaho is well underway. In contrast, construction of the New York facility has yet to begin as the company is working on regulatory and permitting processes in the state. </p>
<p>Micron's capital expenditure (CaPex) plan for FY2024 is approximately $8.0 billion, with a decrease in year-over-year spending on wafer fabrication equipment (WFE). In Q4 FY2024, the company will spend around $3 billion on fab construction, new wafer fab tools, and various expansions/upgrades.</p>
<p>Looking ahead to FY2025, the company plans a substantial increase in capex, targeting a mid-30s percentage of revenue to support various technological and facility advancements. In particular, it expects its quarterly CapEx to average above the $3 billion level seen in the fourth quarter of FY2024, which means that it plans to spend about $12 billion in its fiscal 2025, which begins in late September.</p>
<p>Half or more of the total CapEx increase in FY2025 (i.e., over $2 billion) will be allocated to constructing new fabs in Idaho and New York. Meanwhile, the FY2025 CapEx will significantly rise to fund high-bandwidth memory (HBM) assembly and testing and the construction of fabrication and back-end facilities. This increase also includes investments in technology transitions to meet growing demand. </p>
<p>"<em>Fab construction in Idaho is underway, and we are working diligently to complete the regulatory and permitting processes in New York,</em>" said Sanjay Mehrotra, chief executive officer of Micron, at the company's conference call with investors and financial analysts (via <a href="https://seekingalpha.com/article/4701253-micron-technology-inc-mu-q3-2024-earnings-call-transcript?source=content_type%3Areact%7Csection%3ATranscripts%7Csection_asset%3ATranscripts%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1">SeekingAlpha</a>). "<em>This additional leading-edge greenfield capacity, along with continued technology transition investments in our Asia facilities, is required to meet long-term demand in the second half of this decade and beyond. These investments support our objective to maintain our current bit share over time and to grow our memory bit supply in line with long-term industry bit demand.</em>"</p>
</p> Memory](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_vaKwc9crAD0t5Xb4OOMrLI_ABLCAl3adjCvq7QcSjx5syHWQo_NZ0l66U8xk_nEKzJfzdqsw7ZDPoYkO-0lDNSx2Lwq98B4aVBAt-y_ubtRDovGQRCgC74BEiz6R3OVIPu0cSy0Vh4_m8cQ4ho4wxiJo6IOZHaOY4R49sMn2cd57E=w72-h72-p-k-no-nu)
Micron: U.S. Fabs Will Start Operating in 2026 - 2029 
When Micron announced plans to build two new fabs in the U.S. in 2022, the company vaguely said both would come online by the decade's end. Then, in 2023, it began to optimize its spending, which pushed production at these fabrication facilities. This week, the company outlined more precise timeframes for when its fabs in Idaho and New York will start operations: this will happen from calendar 2026 to calendar 2029.
"These fab construction investments are necessary to support supply growth for the latter half of this decade," a statement by Micron in its Q3 FY2024 financial results report reads. "This Idaho fab will not contribute to meaningful bit supply until fiscal 2027 and the New York construction capex is not expected to contribute to bit supply growth until fiscal 2028 or later. The timing of future [wafer fab equipment] spend in these fabs will be managed to align supply growth with expected demand growth."
Micron's fiscal year 2027 starts in September 2026, so the new fab near Boise, Idaho, is set to start operations between September 2026 and September 2027. The company's fiscal 2028 starts in September 2027, so the fab will likely begin operations in calendar 2028 or later, probably depending on the demand for DRAM memory in the coming years. That said, Micron's U.S. memory fabs will begin operations between late 2026 and 2029, which aligns with the company's original plans.
Construction of the fab in Idaho is well underway. In contrast, construction of the New York facility has yet to begin as the company is working on regulatory and permitting processes in the state.
Micron's capital expenditure (CaPex) plan for FY2024 is approximately $8.0 billion, with a decrease in year-over-year spending on wafer fabrication equipment (WFE). In Q4 FY2024, the company will spend around $3 billion on fab construction, new wafer fab tools, and various expansions/upgrades.
Looking ahead to FY2025, the company plans a substantial increase in capex, targeting a mid-30s percentage of revenue to support various technological and facility advancements. In particular, it expects its quarterly CapEx to average above the $3 billion level seen in the fourth quarter of FY2024, which means that it plans to spend about $12 billion in its fiscal 2025, which begins in late September.
Half or more of the total CapEx increase in FY2025 (i.e., over $2 billion) will be allocated to constructing new fabs in Idaho and New York. Meanwhile, the FY2025 CapEx will significantly rise to fund high-bandwidth memory (HBM) assembly and testing and the construction of fabrication and back-end facilities. This increase also includes investments in technology transitions to meet growing demand.
"Fab construction in Idaho is underway, and we are working diligently to complete the regulatory and permitting processes in New York," said Sanjay Mehrotra, chief executive officer of Micron, at the company's conference call with investors and financial analysts (via SeekingAlpha). "This additional leading-edge greenfield capacity, along with continued technology transition investments in our Asia facilities, is required to meet long-term demand in the second half of this decade and beyond. These investments support our objective to maintain our current bit share over time and to grow our memory bit supply in line with long-term industry bit demand."
Memory
![](https://twitter.com/share?url=https://compbuddey.blogspot.com/2025/04/us-signs-15b-in-chips-act-agreements_3.html&text=U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Plants <p align="center"><a href="https://www.anandtech.com/show/21515/us-signs-chips-act-packaging-agreements-with-amkor-skhynix-15b"><img src="https://images.anandtech.com/doci/21515/amkor-packaging-1-678_575px.jpg" alt="" /></a></p><p><p>Under the CHIPS & Science Act, the U.S. government provided tens of billions of dollars in grants and loans to the world's leading maker of chips, such as Intel, Samsung, and TSMC, which will significantly expand the country's semiconductor production industry in the coming years. However, most chips are typically tested, assembled, and packaged in Asia, which has left the American supply chain incomplete. Addressing this last gap in the government's domestic chip production plans, these past couple of weeks the U.S. government signed memorandums of understanding worth about $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the U.S.</p>
<h3>Amkor to Build Advanced Packaging Facility with Apple in Mind</h3>
<p>Amkor <a href="https://www.anandtech.com/show/21175/amkor-to-build-2-billion-chip-packaging-fab-in-arizona-primarily-for-apple">plans to build a $2 billion advanced packaging facility near Peoria, Arizona</a>, to test and assemble chips produced by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a MOU that offers $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. In addition, the company plans to take advantage of a 25% investment tax credit on eligible capital expenditures.</p>
<p>Set to be strategically positioned near TSMC's upcoming Fab 21 complex in Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully completed, will feature over 500,000 square feet (46,451 square meters) of cleanroom space, more than twice the size of Amkor's advanced packaging site in Vietnam. Although the company has not disclosed the exact capacity or the specific technologies the facility will support, it is expected to cater to a wide range of industries, including automotive, high-performance computing, and mobile technologies. This suggests the new plant will offer diverse packaging solutions, including traditional, 2.5D, and 3D technologies.</p>
<p>Amkor has collaborated extensively with Apple on the vision and initial setup of the Peoria facility, as Apple is slated to be the facility's first and largest customer, marking a significant commitment from the tech giant. This partnership highlights the importance of the new facility in reinforcing the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies relying on TSMC's manufacturing capabilities. The project is expected to generate around 2,000 jobs and is scheduled to begin operations in 2027. </p>
<h3>SK hynix to Build HBM4 in the U.S.</h3>
<p>This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans to build an advanced memory packaging facility in West Lafayette, Indiana. </p>
<p>The proposed facility is scheduled to begin operations in 2028, which means that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will still be produced in South Korea. Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is a big deal.</p>
<p>In addition to building its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership is intended to bolster research and development in the region, positioning the facility as a hub for AI technology and skilled employment.</p>
<p>Sources: <a href="https://ir.amkor.com/news-releases/news-release-details/amkor-signs-preliminary-memorandum-terms-us-department-commerce">Amkor</a>, <a href="https://news.skhynix.com/preliminary-mou-terms-signed-with-us-doc-for-advanced-packaging-facility-in-indiana/">SK hynix</a></p>
</p> Semiconductors){kind=link}
![](https://www.pinterest.com/pin/create/button/?url=https://compbuddey.blogspot.com/2025/04/us-signs-15b-in-chips-act-agreements_3.html&media=https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_sduIuiKbwEfenmiezrI2a93tQfbVEllPnoWH2pJsGSJe9FOKh6OSwAJPd3bc8iw7gg9o-suXQrvZptO8y4XbZbTk0l51TfFQ5-VPZJavNSVN0n6RQRgUGm_awFJeqcAwmGA8WDpYdOPQw&description=U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Plants <p align="center"><a href="https://www.anandtech.com/show/21515/us-signs-chips-act-packaging-agreements-with-amkor-skhynix-15b"><img src="https://images.anandtech.com/doci/21515/amkor-packaging-1-678_575px.jpg" alt="" /></a></p><p><p>Under the CHIPS & Science Act, the U.S. government provided tens of billions of dollars in grants and loans to the world's leading maker of chips, such as Intel, Samsung, and TSMC, which will significantly expand the country's semiconductor production industry in the coming years. However, most chips are typically tested, assembled, and packaged in Asia, which has left the American supply chain incomplete. Addressing this last gap in the government's domestic chip production plans, these past couple of weeks the U.S. government signed memorandums of understanding worth about $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the U.S.</p>
<h3>Amkor to Build Advanced Packaging Facility with Apple in Mind</h3>
<p>Amkor <a href="https://www.anandtech.com/show/21175/amkor-to-build-2-billion-chip-packaging-fab-in-arizona-primarily-for-apple">plans to build a $2 billion advanced packaging facility near Peoria, Arizona</a>, to test and assemble chips produced by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a MOU that offers $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. In addition, the company plans to take advantage of a 25% investment tax credit on eligible capital expenditures.</p>
<p>Set to be strategically positioned near TSMC's upcoming Fab 21 complex in Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully completed, will feature over 500,000 square feet (46,451 square meters) of cleanroom space, more than twice the size of Amkor's advanced packaging site in Vietnam. Although the company has not disclosed the exact capacity or the specific technologies the facility will support, it is expected to cater to a wide range of industries, including automotive, high-performance computing, and mobile technologies. This suggests the new plant will offer diverse packaging solutions, including traditional, 2.5D, and 3D technologies.</p>
<p>Amkor has collaborated extensively with Apple on the vision and initial setup of the Peoria facility, as Apple is slated to be the facility's first and largest customer, marking a significant commitment from the tech giant. This partnership highlights the importance of the new facility in reinforcing the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies relying on TSMC's manufacturing capabilities. The project is expected to generate around 2,000 jobs and is scheduled to begin operations in 2027. </p>
<h3>SK hynix to Build HBM4 in the U.S.</h3>
<p>This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans to build an advanced memory packaging facility in West Lafayette, Indiana. </p>
<p>The proposed facility is scheduled to begin operations in 2028, which means that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will still be produced in South Korea. Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is a big deal.</p>
<p>In addition to building its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership is intended to bolster research and development in the region, positioning the facility as a hub for AI technology and skilled employment.</p>
<p>Sources: <a href="https://ir.amkor.com/news-releases/news-release-details/amkor-signs-preliminary-memorandum-terms-us-department-commerce">Amkor</a>, <a href="https://news.skhynix.com/preliminary-mou-terms-signed-with-us-doc-for-advanced-packaging-facility-in-indiana/">SK hynix</a></p>
</p> Semiconductors){kind=link}
![](https://web.whatsapp.com/send?text=U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Plants <p align="center"><a href="https://www.anandtech.com/show/21515/us-signs-chips-act-packaging-agreements-with-amkor-skhynix-15b"><img src="https://images.anandtech.com/doci/21515/amkor-packaging-1-678_575px.jpg" alt="" /></a></p><p><p>Under the CHIPS & Science Act, the U.S. government provided tens of billions of dollars in grants and loans to the world's leading maker of chips, such as Intel, Samsung, and TSMC, which will significantly expand the country's semiconductor production industry in the coming years. However, most chips are typically tested, assembled, and packaged in Asia, which has left the American supply chain incomplete. Addressing this last gap in the government's domestic chip production plans, these past couple of weeks the U.S. government signed memorandums of understanding worth about $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the U.S.</p>
<h3>Amkor to Build Advanced Packaging Facility with Apple in Mind</h3>
<p>Amkor <a href="https://www.anandtech.com/show/21175/amkor-to-build-2-billion-chip-packaging-fab-in-arizona-primarily-for-apple">plans to build a $2 billion advanced packaging facility near Peoria, Arizona</a>, to test and assemble chips produced by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a MOU that offers $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. In addition, the company plans to take advantage of a 25% investment tax credit on eligible capital expenditures.</p>
<p>Set to be strategically positioned near TSMC's upcoming Fab 21 complex in Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully completed, will feature over 500,000 square feet (46,451 square meters) of cleanroom space, more than twice the size of Amkor's advanced packaging site in Vietnam. Although the company has not disclosed the exact capacity or the specific technologies the facility will support, it is expected to cater to a wide range of industries, including automotive, high-performance computing, and mobile technologies. This suggests the new plant will offer diverse packaging solutions, including traditional, 2.5D, and 3D technologies.</p>
<p>Amkor has collaborated extensively with Apple on the vision and initial setup of the Peoria facility, as Apple is slated to be the facility's first and largest customer, marking a significant commitment from the tech giant. This partnership highlights the importance of the new facility in reinforcing the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies relying on TSMC's manufacturing capabilities. The project is expected to generate around 2,000 jobs and is scheduled to begin operations in 2027. </p>
<h3>SK hynix to Build HBM4 in the U.S.</h3>
<p>This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans to build an advanced memory packaging facility in West Lafayette, Indiana. </p>
<p>The proposed facility is scheduled to begin operations in 2028, which means that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will still be produced in South Korea. Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is a big deal.</p>
<p>In addition to building its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership is intended to bolster research and development in the region, positioning the facility as a hub for AI technology and skilled employment.</p>
<p>Sources: <a href="https://ir.amkor.com/news-releases/news-release-details/amkor-signs-preliminary-memorandum-terms-us-department-commerce">Amkor</a>, <a href="https://news.skhynix.com/preliminary-mou-terms-signed-with-us-doc-for-advanced-packaging-facility-in-indiana/">SK hynix</a></p>
</p> Semiconductors | https://compbuddey.blogspot.com/2025/04/us-signs-15b-in-chips-act-agreements_3.html){kind=link}
![](mailto:?subject=U.S. Signs $1.5B in CHIPS Act Agreements With Amkor and SKhynix for Chip Packaging Plants <p align="center"><a href="https://www.anandtech.com/show/21515/us-signs-chips-act-packaging-agreements-with-amkor-skhynix-15b"><img src="https://images.anandtech.com/doci/21515/amkor-packaging-1-678_575px.jpg" alt="" /></a></p><p><p>Under the CHIPS & Science Act, the U.S. government provided tens of billions of dollars in grants and loans to the world's leading maker of chips, such as Intel, Samsung, and TSMC, which will significantly expand the country's semiconductor production industry in the coming years. However, most chips are typically tested, assembled, and packaged in Asia, which has left the American supply chain incomplete. Addressing this last gap in the government's domestic chip production plans, these past couple of weeks the U.S. government signed memorandums of understanding worth about $1.5 billion with Amkor and SK hynix to support their efforts to build chip packaging facilities in the U.S.</p>
<h3>Amkor to Build Advanced Packaging Facility with Apple in Mind</h3>
<p>Amkor <a href="https://www.anandtech.com/show/21175/amkor-to-build-2-billion-chip-packaging-fab-in-arizona-primarily-for-apple">plans to build a $2 billion advanced packaging facility near Peoria, Arizona</a>, to test and assemble chips produced by TSMC at its Fab 21 near Phoenix, Arizona. The company signed a MOU that offers $400 million in direct funding and access to $200 million in loans under the CHIPS & Science Act. In addition, the company plans to take advantage of a 25% investment tax credit on eligible capital expenditures.</p>
<p>Set to be strategically positioned near TSMC's upcoming Fab 21 complex in Arizona, Amkor's Peoria facility will occupy 55 acres and, when fully completed, will feature over 500,000 square feet (46,451 square meters) of cleanroom space, more than twice the size of Amkor's advanced packaging site in Vietnam. Although the company has not disclosed the exact capacity or the specific technologies the facility will support, it is expected to cater to a wide range of industries, including automotive, high-performance computing, and mobile technologies. This suggests the new plant will offer diverse packaging solutions, including traditional, 2.5D, and 3D technologies.</p>
<p>Amkor has collaborated extensively with Apple on the vision and initial setup of the Peoria facility, as Apple is slated to be the facility's first and largest customer, marking a significant commitment from the tech giant. This partnership highlights the importance of the new facility in reinforcing the U.S. semiconductor supply chain and positioning Amkor as a key partner for companies relying on TSMC's manufacturing capabilities. The project is expected to generate around 2,000 jobs and is scheduled to begin operations in 2027. </p>
<h3>SK hynix to Build HBM4 in the U.S.</h3>
<p>This week SK hynix also signed a preliminary agreement with the U.S. government to receive up to $450 million in direct funding and $500 million in loans to build an advanced memory packaging facility in West Lafayette, Indiana. </p>
<p>The proposed facility is scheduled to begin operations in 2028, which means that it will assemble HBM4 or HBM4E memory. Meanwhile, DRAM devices for high bandwidth memory (HBM) stacks will still be produced in South Korea. Nonetheless, packing finished HBM4/HBM4E in the U.S. and possibly integrating these memory modules with high-end processors is a big deal.</p>
<p>In addition to building its packaging plant, SK hynix plans to collaborate with Purdue University and other local research institutions to advance semiconductor technology and packaging innovations. This partnership is intended to bolster research and development in the region, positioning the facility as a hub for AI technology and skilled employment.</p>
<p>Sources: <a href="https://ir.amkor.com/news-releases/news-release-details/amkor-signs-preliminary-memorandum-terms-us-department-commerce">Amkor</a>, <a href="https://news.skhynix.com/preliminary-mou-terms-signed-with-us-doc-for-advanced-packaging-facility-in-indiana/">SK hynix</a></p>
</p> Semiconductors&body=https://compbuddey.blogspot.com/2025/04/us-signs-15b-in-chips-act-agreements_3.html){kind=link}
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's.
SK hynix Reports That 2025 HBM Memory Supply Has Nearly Sold Out
Demand for high-performance processors for AI training is skyrocketing, and consequently so is the demand for the components that go into these processors. So much so that SK hynix this week is very publicly announcing that the company's high-bandwidth memory (HBM) production capacity has already sold out for the rest of 2024, and even most of 2025 has already sold out as well.
SK hynix currently produces various types of HBM memory for customers like Amazon, AMD, Facebook, Google (Broadcom), Intel, Microsoft, and, of course, NVIDIA. The latter is an especially prolific consumer of HBM3 and HBM3E memory for its H100/H200/GH200 accelerators, as NVIDIA is also working to fill what remains an insatiable (and unmet) demand for its accelerators.
As a result, HBM memory orders, which are already placed months in advance, are now backlogging well into 2025 as chip vendors look to secure supplies of the memory stacks critical to their success.
This has made SK hynix the secnd HBM memory vendor in recent months to announce that they've sold out into 2025, following an earlier announcement from Micron regarding its HBM3E production. But of the two announcements, SK hynix's is arguably the most significant yet, as the South Korean firm's HBM production capacity is far greater than Micron's. So while things were merely "interesting" with the smallest of the Big Three memory manufacturers being sold out into 2025, things are taking a more concerning (and constrained) outlook now that SK hynix is as well.
SK hynix currently controls roughly 46% - 49% of HBM market, and its share is not expected to drop significantly in 2025, according to market tracking firm TrendForce. By contrast, Micron's share on HBM memory market is between 4% and 6%. Since HBM supply of both companies is sold out through the most of 2025, we're likely looking at a scenario where over 50% of the industry's total HBM3/HBM3E supply for the coming quarters is already sold out.
This leaves Samsung as the only member of the group not to comment on HBM demand so far. Though with memory being a highly fungible commodity product, it would be surprising if Samsung wasn't facing similar demand. And, ultimately, all of this is pointing towards the indusry entering an HBM3 memory shortage.
Separately, SK hynix said that it is sampling 12-Hi 36GB HBM3E stacks with customers and will begin volume shipments in the third quarter.
Memory
0 Comments