U.S. Boosts Semiconductor Advanced Packaging with $1.4 Billion Investment

The U.S. Department of Commerce has announced a significant investment of $1.4 billion to support the next generation of semiconductor advanced packaging. This strategic move aims to strengthen the U.S. semiconductor industry's global competitiveness and drive innovation in critical technologies such as artificial intelligence (AI) and high-performance computing (HPC).

Advanced packaging is a crucial aspect of semiconductor manufacturing, enabling the integration of multiple chips with diverse functions on a single substrate. This technology is essential for AI and HPC applications, as it allows for efficient data handling and high performance. The investment in advanced packaging will drive the development and adoption of advanced packaging technologies such as chip-on-wafer-on-substrate (CoWoS) and high bandwidth memory (HBM), which are vital for AI applications.

The investment will also support the expansion of advanced packaging capabilities by foundries such as Intel, Samsung, and TSMC, as well as outsourced semiconductor assembly and test (OSAT) companies like Amkor. This will help the U.S. semiconductor industry stay at the forefront of advanced packaging technologies and maintain its competitive edge in the global market.

Moreover, the investment will help address the technological challenges associated with advanced packaging, such as power delivery, thermal management, and testing and repair of complex assemblies. By solving these challenges, the U.S. semiconductor industry will be better positioned to compete with other global players, such as those in East Asia, where 75% of the global semiconductor manufacturing capacity is already concentrated.

The investment in advanced packaging aligns with the broader CHIPS and Science Act objectives, which aim to strengthen the U.S. semiconductor industry, support advanced technologies, create jobs, enhance national security, and foster innovation. By investing in the back-end semiconductor equipment market, the U.S. government is taking a critical step towards achieving these goals and ensuring a highly resilient, geographically diversified supply chain.



In conclusion, the $1.4 billion investment in advanced packaging is a strategic move by the U.S. government to strengthen the domestic semiconductor industry and drive innovation in critical technologies. This investment will help the U.S. maintain its leadership in advanced packaging technologies, stay ahead of the competition, and ensure a highly resilient, geographically diversified supply chain. The investment aligns with the broader CHIPS and Science Act objectives and is a critical step towards achieving the goals of the act.