Wolfspeed & Hemlock Semiconductor Get Their CHIPS Act Share
Arizona Facility to Focus on High Performance Computing
In IFTLE 577 we reported that Amkor had announced plans to build an advanced packaging and test facility in Peoria, Arizona.
In IFTLE 603 we reported that Amkor Technology had signed a preliminary memorandum of terms with US Department of Commerce for an Amkor Arizona Advanced Packaging and Test Facility to receive up to $400MM in direct funding and $200MM in loans from the CHIPS Act to support the company’s reported $2B investment in the proposed OSAT plant. The facility would be the largest OSAT facility in the US.
In IFTLE 609, IFTLE reported that TSMC and Amkor had signed a memorandum of understanding (MoU) where Amkor will provide TSMC with advanced packaging and test services from its planned assembly and test company plant in Peoria, Arizona.
The two companies said, “the close collaboration and proximity of TSMC’s front-end fab and Amkor’s back-end facility will accelerate overall product cycle times,” adding that they will “jointly define the specific packaging technologies” used to address common customer needs, such as TSMC’s Integrated Fan-Out (InFO) and Chip on Wafer on Substrate (CoWoS) that will be employed to address common customers’ needs.
IFTLE has recently had discussions with Dave McCann, Sr. VP at Amkor Technology in Arizona to see if we could further define the company’s planned activity.
McCann has shared that Amkor plans to install a high-volume advanced packaging manufacturing facility including:
- Full turnkey 300mm bump/probe/assembly/test
- Advanced IC on substrate packaging
- Advanced wafer-based packaging
- An ITAR compliant facility
Amkor’s focus will be advanced packaging for artificial intelligence (AI), high performance computing (HPC), automotive and mobile. Plans are to have the facility on line by early 2028.
The bumping line would allow Amkor to bump advanced chips produced on shore for companies like TSMC, GF and others building high performance chips in the US under the CHIPS Act.
IFTLE sees this as a major “on shoring” announcement.
Wolfspeed
The U.S. Department of Commerce and Wolfspeed have signed a preliminary memorandum of terms (PMT) to provide up to $750 million in direct funding under the CHIPS and Science Act, to support the construction of a new 200mm silicon carbide (SiC) wafer manufacturing facility in Siler City, NC.
In addition to Wolfspeed’s North Carolina SiC project, the proposed CHIPS investment is expected to catalyze its planned expansion of its device manufacturing facility in Marcy, NY. The projects are part of the company’s announced $6B capacity expansion plan.
Founded in 1987 as a spin out of NC State faculty and students, Wolfspeed, (formerly known as Cree) is the world’s leading manufacturer of wafers and devices made from SiC. SiC devices power electric vehicles (EVs) and plug-in hybrids, enabling extended driving range-per-charge, faster charging times, and lower overall systems costs. Beyond EVs, Wolfspeed’s devices are utilized for renewable energy systems, industrial capacities, AI and applications for the United States military.
The 2MM ft. sq. NC facility will be the US’s largest SiC wafer manufacturing facility and the world’s first high-volume 200mm silicon carbide wafer manufacturing facility. The Marcy, NY facility, will be the world’s first fully automated 200mm silicon carbide power device fab and increase its production capacity by approximately 30%. This fab is qualified to serve both automotive and industrial and energy customers.
Due in part to these proposed projects, Wolfspeed anticipates achieving a five-fold increase in its silicon carbide device output and a ten-fold increase in 200mm materials production capacity.
The proposed CHIPS funding is also expected to catalyze private capital investment of another $750 million to support the company’s expansion plans.
Hemlock Semiconductor gets $325M investment from CHIPS Act
The Department of Commerce and Hemlock Semiconductor signed a non-binding preliminary memorandum of terms to provide up to $325 million in proposed direct funding under the CHIPS and Science Act.
The new facility will be located at HSC’s campus in Michigan and will be dedicated to the production and purification of hyper-pure semiconductor-grade polysilicon.
Founded in 1961, HSC is the only U.S.-based manufacturer of hyper-pure polysilicon and is one of just five companies in the world producing polysilicon to the purity level needed to serve the semiconductor market.
Construction of the new facility is expected to begin in 2026. Production should begin in 2028 with full production capacity by the end of 2028 or in early 2029.
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