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The United States expects to direct up to USD 1.6 billion in funding to boost semiconductor packaging to stay ahead in the tech amid intensifying competition with China. The funding comes under the CHIPS and Science Act, which frees up to USD 52 billion in subsidies to bolster domestic semiconductor production in the United States.
Semiconductor packaging allows components to be combined as a single electronic device, and the latest investment seeks to drive innovation in this process. The aim is to help develop a “self-sustaining, and profitable, domestic advanced packaging industry,” said the Commerce Department. Packaging is the process of encasing semiconductors and connecting them to devices, and is a crucial subset of the chipmaking industry.
Asian countries such as Taiwan and South Korea are leaders in this field. The US government has given incentives to companies like Intel, SK Hynix, Amkor and Samsung to build chip packaging plants in the country. In October, Amkor Technology and TSMC signed a memorandum of understanding to collaborate and bring advanced packaging and test capabilities to Arizona.
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