The Department of Commerce has agreed to provide Amkor Technology with up to $400 million in proposed direct funding under the CHIPS and Science Act.
Under a preliminary memorandum of terms signed by the two parties, the federal funding would support Amkor’s $2 billion advanced packaging project in Arizona, the Commerce Department said.
According to Secretary of Commerce Gina Raimondo, the funding would improve the country’s supply chain security and generate thousands of jobs in Arizona.
“The leading-edge chips that will be packaged right here in Arizona are foundational to technologies of the future that will define global economic and national security for decades to come,” Raimondo said.
The PMT will also give Amkor access to $200 million of proposed loans from the CHIPS Program Office and up to 25 percent of tax credit from the Department of the Treasury.
When it becomes operational, Amkor’s Arizona facility will package and test leading-edge chips for autonomous vehicles, 5G/6G smartphones and large-scale data centers.
The company will also support around 2,000 jobs in the state and establish a pipeline for skilled jobs by collaborating with leading universities across the U.S.
The Commerce Department noted that the upcoming Amkor facility will enable companies such as TSMC, Apple and GlobalFoundries to package and test their essential chips locally.
