CHIPS for America Week in Review

On Friday, July 26, 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. The proposed investment would support Amkor’s investment of approximately $2 billion in a greenfield project in Peoria, Arizona, which will provide full end-to-end advanced packaging for the world’s most advanced semiconductors for applications in high-performance computing, artificial intelligence, communications, and automotive, end markets.  

With this proposed investment in Amkor, the largest U.S.-based outsourced semiconductor assembly and test company (OSAT), the Biden-Harris Administration would help strengthen resilience in key advanced packaging technologies, which will strengthen U.S. economic and national security by ensuring a reliable domestic advanced packaging ecosystem, supporting leading-edge clusters, and helping meet the growing demand for AI chips. Accordingly, companies such as TSMC, Apple, and GlobalFoundries—which power the world’s most advanced technologies—will be able to package and test their essential chips domestically, enabling the full end-to-end cycle of the chip manufacturing process to occur in the United States. The proposed investment would create approximately 2,000 jobs. 

“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. Advanced packaging drives chip innovation at all levels, and because of President Biden’s leadership, the U.S. will have a robust domestic footprint in this critical technology,” said U.S. Secretary of Commerce Gina Raimondo. “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. Thanks to the Biden-Harris Administration, and Amkor’s investments in the U.S., this proposed funding would enhance our supply chain security, create thousands of jobs in Arizona, and further position the United States to out-innovate, out-build, and out-compete the rest of the world.”  

"Today's announcement underscores Arizona's position as the semiconductor hub of the US and among the world's most advanced manufacturing ecosystems. Amkor's Arizona expansion represents the most significant advanced packaging facility in the United States, reshoring a critical part of the semiconductor supply chain back to North America. This investment means good, durable jobs for Arizonans and that we will remain on the leading edge of the global economy for generations to come,” said Arizona Governor Katie Hobbs. 

“This is a big day for the state of Arizona and the entire country. With this award and Amkor’s significant investment, their new facility in Peoria will be one of the first advanced packaging facilities in the United States, marking a critical step in strengthening our microchip supply chain,” said Arizona Senator Mark Kelly. “This project will create great-paying jobs, many of which won’t require a four-year degree. The CHIPS and Science Act is working for Arizona, providing new opportunities for our local workforce, and is working for our country, bringing back advanced manufacturing capabilities, and strengthening our national security.” 

“Today’s Amkor announcement will strengthen U.S.-based advanced packaging operations—a critical step in the chip production process—while further expanding Arizona’s booming semiconductor ecosystem and bringing more jobs and economic growth to the state. We commend Amkor for investing ambitiously in U.S.-based advanced packaging, which is an area that needs to be strengthened in the U.S. chip ecosystem, and we salute the U.S. Commerce Department for continuing to make impressive headway in getting CHIPS Act incentives out the door in a timely and effective manner. We look forward to continuing to work with leaders in government and industry to ensure the CHIPS Act delivers maximum benefits for America’s economic strength, national security, and supply chain resilience,” said SIA President and CEO John Neuffer. 

On Wednesday, July 24, the U.S. National Science Foundation and the CHIPS for America Research and Development Office (CRDO) within the National Institute of Standards and Technology (NIST), a bureau of the U.S. Department of Commerce (DOC), signed a memorandum of understanding to jointly invest in a new initiative to train the future semiconductor workforce at all levels for myriad job types across industry and the nation. As a first step, NSF and DOC are jointly issuing a public Request for Information (RFI), seeking input from the community to inform the new initiative. 

 This memorandum of understanding paves the way for the creation of a National Network for Microelectronics Education – led by a Network Coordination Hub that will oversee a suite of regional consortia and other efforts that offer consistent, rigorous, engaging curricula, instructional materials, experiential opportunities, and more to talent throughout the United States. 

CHIPS for America in the News:  

This week, the U.S. National Science Foundation and the CHIPS for America Research and Development Office (CRDO) within the National Institute of Standards and Technology (NIST), a bureau of the U.S. Department of Commerce (DOC), signed a memorandum of understanding to jointly invest in a new initiative to train the future semiconductor workforce at all levels for myriad job types across industry and the nation. As a first step, NSF and DOC are jointly issuing a public Request for Information (RFI), seeking input from the community to inform the new initiative. 

On Monday, July 1, Natcast released the first workforce funding opportunity for the National Semiconductor Technology Center (NSTC). The NSTC Workforce Partner Alliance (WFPA) program will invest in initiatives addressing critical U.S. job and skill gaps across semiconductor design, manufacturing, and production. This initial workforce program plans to make awards to 4-10 high-impact projects. Project proposals should be one (1) to two (2) years in duration with a total budget between $500,000 and $2 million per award. Applications are due on July 26, 2024— TODAY. 

The Department of Commerce expects to invest hundreds of millions of dollars in the NSTC’s workforce efforts, including the creation of a Workforce Center of Excellence.