US Chip Giants Face Community Resistance and Financial Strain Amid Expansion Plans

Several chip manufacturers in the United States are encountering significant delays in their plans to establish new production facilities. These postponements are primarily driven by resistance from local residents and have brought substantial financial challenges to the companies involved.

Amkor, intending to construct a two-billion-dollar chip packaging plant in Arizona, has faced considerable opposition from the community. Concerns about the impact on water resources and traffic congestion have been foremost among the objections, leading residents to threaten legal actions if the project proceeds as planned.

Micron's ambitious project to establish a DRAM production base in New York, with an expected investment of up to 100 billion dollars, is similarly delayed. Environmental assessment procedures have stalled construction plans originally set to commence in 2024, with significant financial repercussions for the company with each day of inactivity.

SK Hynix has also postponed its plans to develop a cutting-edge high-bandwidth memory production site in Indiana. The objections centered around the proposed site’s proximity to residential areas, leading to a halt that could defer the facility’s operational start to 2028.

To mitigate such issues, several states have proactively established pre-approved industrial zones. These zones, such as those in North Carolina, Pennsylvania, and Ohio, aim to streamline the approval process and attract semiconductor companies by removing bureaucratic hurdles.

Despite these obstacles, the drive to bolster domestic semiconductor production in the US continues under federal incentives like the “Chip and Science Act.” The objective is not solely to expand manufacturing capacity but to ensure that these ventures can proceed without further impediments, paving the way for a more resilient supply chain infrastructure in the nation.