Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
The U.S. Commerce Department has announced a $75 million grant to Absolics Inc., which manufactures glass substrates for semiconductor packages.
The initiative, under the CHIPS and Science Act, aims to enhance U.S. leadership in technology by building a new facility in Covington, Georgia.
The proposed 120,000-square-foot facility will focus on developing advanced substrate technology for semiconductor packaging, marking the first CHIPS investment in a commercial facility for this purpose.
The project is expected to create 1,000 construction jobs and 200 positions in manufacturing and research in Covington, Georgia.
The plant will supply advanced materials crucial to the country’s semiconductor industry. The funding comes from the U.S. government’s $52.7 billion initiative to boost semiconductor manufacturing and development, Reuters reported.
Founded in 2021, Absolics has pioneered a glass substrate technology that allows processing and memory chips to be integrated into a single device, improving speed and efficiency.
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The company, an affiliate of SKC Co., part of South Korea’s SK Group, began construction of the Georgia plant in November 2022, with Applied Materials Inc (NASDAQ:AMAT) as an investor.
CEO Jun Rok Oh stated that the funding will enable Absolics to fully commercialize its glass substrate technology for high-performance computing and advanced defense applications.
The Commerce Department emphasized that these substrates will enhance the performance of cutting-edge chips used in AI and data centers.
In a broader context, SK Hynix recently announced a $3.87 billion investment for a new packaging plant and R&D facility in Indiana focused on AI products.
Meanwhile, U.S. Commerce Secretary Gina Raimondo has prioritized advanced packaging, noting the market’s current concentration in Asia.
The Commerce Department previously unveiled a $3 billion plan to support advanced packaging, with significant proposed awards to major companies, including Intel Corp (NASDAQ:INTC), Taiwan Semiconductor Mfg Co Ltd (NYSE:TSM), Samsung, and Micron Technology Inc (NASDAQ:MU).
In addition, Amkor Technology Inc (NASDAQ:AMKR) plans to invest $2 billion in a new packaging and testing facility in Arizona.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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