US Chip Fabrication, Packaging & Assembly Industry
In August 2023, one year after the U.S. CHIPs Act was signed into law, the White House announced that over 460 companies had already submitted statements of interest to receive funding.
GlobalFoundries
The U.S. Dept of Commerce has announced $1.5B in direct funding for GlobalFoundries (GF) as part of the U.S. CHIPS and Science Act.
GF is the first semiconductor pure-play foundry to receive a significant award from the CHIPS and Science Act. This investment will reportedly enable the company to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, IoT, aerospace, defense, and other vital markets. The proposed funding will reportedly support three GF projects:
In Malta NY
- Expansion of GF’s existing Malta, NY, fab by adding critical technologies already in production in GF’s Singapore and Germany facilities geared towards enabling the U.S. auto industry. This will diversify GF’s flagship Malta fab into new technologies and end markets.
- Construction of a new state-of-the-art fab on the Malta campus to meet expected customer demand for U.S.-made essential chips across a broad range of markets and applications including automotive, aerospace, defense, and AI.
GlobalFoundries says the new fab it has planned will focus on the “mature” node market, which it says represents 60% of the global chip market. These two projects are expected to increase production to 1 million wafers per year once all phases are complete.
In support of these two Malta, NY projects, New York State (NYS) has announced $575MM in planned direct funding and $15MM in planned funding for NYS Workforce Development activities for GlobalFoundries as well as $30MM in planned funding for NYS Infrastructure upgrades and Energy incentives provided by the New York Power Authority.
In Essex Junction VT
- Modernization of GF’s “Trusted” 200mm facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity as well as create the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones, and other critical technologies.
Based on market requirements and demand, GF plans to invest more than $12B over the next 10 plus years across sites in New York and Vermont “…through public-private partnerships with support from the federal and state governments as well as from its ecosystem partners, including key strategic customers.”
Intel
Bloomberg has reported that Intel is in late-stage discussions to be awarded more than $10B in government subsidies for semiconductor activities.
While both Intel and the Dept of Commerce officially declined to comment on the Bloomberg report, rumors persisted that the award would be announced before the State of the Union speech scheduled for March 7th.
The award package will reportedly include both loans and direct grants, according to the Bloomberg report. Intel did not provide any updates on the status of its requests for US financial support when it released its fourth-quarter financial results although they recently announced that completion of the Ohio fab project has been pushed back to potentially as late as 2027. While Intel has put the initial outlay for its Ohio fab at $20 billion, it’s stated it will eventually require $100 billion to be fully operational.
Last month the Wall Street Journal reported that the US Government would be awarding billions of dollars in subsidies to Intel, TSMC, Micron, Texas Instruments, GlobalFoundries, and other semiconductor firms for new on-shore factories.
For all the latest on Advanced Packaging stay linked to IFTLE……………
