In April, Samsung Electronics secured subsidies amounting to $6.4 billion for its ongoing foundry plant construction project in Taylor, Texas. This significant financial support is part of a broader initiative by the U.S. government to bolster its domestic semiconductor industry.

On July 27, the U.S. Department of Commerce announced that it had signed a non-binding preliminary memorandum (PMT) with Amkor Technology to provide subsidies of up to $400 million (550 billion won). This funding will support Amkor’s investment in a new advanced semiconductor packaging plant in Arizona, which is projected to cost $2 billion. This marks the first time the Department of Commerce has announced subsidy recipients in the semiconductor “post-processing” sector.

Commerce Secretary Gina Raimondo explained the subsidy, stating, “One of the fundamental goals of the CHIPS Act is to establish an advanced packaging ecosystem in the U.S. so that the entire process of chip production, from start to finish, takes place domestically.” The CHIPS and Science Act, signed into law in August 2022, aims to reduce reliance on foreign semiconductor production and address global semiconductor shortages by providing substantial funding for semiconductor research, development, and manufacturing.

The U.S. government has promised subsidies for the establishment of semiconductor manufacturing plants, leading major foundry companies like Samsung Electronics, Taiwan’s TSMC, and the U.S.’s Intel to build production facilities in the U.S. Investment in packaging plants, which are crucial for AI (artificial intelligence) semiconductor processes, is also increasing. Advanced packaging technology is critical as it significantly impacts the performance of highly complex ultra-fine semiconductors.

The Department of Commerce will provide government loans of up to $200 million and offer investment tax credits of up to 25% to support these initiatives. Given that the Department of Commerce is now selecting recipients for advanced packaging plant subsidies, there is growing anticipation that Korean companies will benefit from these subsidies.

SK Hynix, another major player in the semiconductor industry, plans to invest $3.87 billion to build an advanced packaging plant in West Lafayette, Indiana. The company aims for mass production at the Indiana plant by the second half of 2028 and is reportedly applying for subsidies from the Department of Commerce.

As the U.S. continues to roll out its semiconductor subsidy programs, the involvement of major global players like Samsung Electronics, Amkor Technology, and SK Hynix underscores the strategic importance of these initiatives. The economic relationship between the U.S. and South Korea, particularly in the technology and semiconductor sectors, remains strong, with South Korean companies playing a significant role in the global semiconductor industry.