U.S. to fund $1.6 bn for R&D in advanced chip packaging tech

SEMICON West San Francisco 2024. [Photo by Yonhap]

The U.S. Department of Commerce will launch 2 trillion won ($1.6 billion) in federal funding to spur the research and development of advanced chip packaging. Industry observers expect that the move will incentivize Samsung Electronics Co. and SK hynix Inc., as the two South Korean chipmakers have their chip plants under construction in the United States.

The decision comes amid the remarks made by Laurie E. Locascio, the Under Secretary of Commerce for Standards and Technology at SEMICON West 2024, which is taking place at the Moscone Center in San Francisco. The funds will be provided via the Chips and Science Act.

Major semiconductor firms such as Samsung Electronics, SK hynix, and Intel Corp are building packaging plants in the United States. Samsung Electronics announced it would increase its investment in a new semiconductor plant in Taylor, Texas, from $17 billion to $40 billion, including advanced packaging facilities.