US to Invest $75 Million in South Korean Firm Absolics to Build Computer Chip Factory in Georgia – Tech Times
The United States government is investing $75 million in Absolics, a South Korean company affiliated with the SK Group, to help establish a factory producing glass components for computer chips, the US Department of Commerce announced on Thursday.
Under a non-binding preliminary memorandum of terms (PMT), the Department of Commerce and Absolics have agreed to this funding as part of the CHIPS and Science Act, which aims to bolster US technological innovation.
The proposed investment will facilitate the establishment of a 120,000-square-foot facility in Covington, Georgia, and the advancement of substrate technology crucial for advanced semiconductor packaging.
Secretary of Commerce Gina Raimondo emphasized the significance of the investment in Absolics, underscoring its role in propelling technological innovation, fostering US semiconductor leadership, and stimulating economic growth in Georgia.
The investment is projected to create over 1,000 construction jobs and around 200 manufacturing and R&D positions in Covington, further enhancing innovation capacity at the Georgia Institute of Technology.
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Absolics’s glass substrates will serve as crucial components in advanced packaging technology, enhancing the capabilities of cutting-edge chips for AI, high-performance computing, and data centers.
By minimizing power consumption and system complexity, these substrates enable faster and more energy-efficient computing. According to the Department of Commerce, the market for advanced packaging substrates is predominantly centered in Asia.
However, with the proposed CHIPS investment, companies based in the US will benefit from an increased domestic supply of glass substrates for advanced packaging, fostering technological innovation and competitiveness.
Advanced packaging tech is pivotal in enhancing semiconductor applications for US companies. Substrates, which serve as the fundamental building blocks of systems, lie at the core of advanced packaging. With more advanced substrates, opportunities for innovation proliferate across all facets of the packaging process.
Absolics will persist in its research and development endeavors with Georgia Tech, engaging in collaborative initiatives related to the Department of Defense’s “State-of-the-Art” Heterogeneous Integrated Packaging (SHIP) program focusing on RF technologies.
Absolics also pledged to nurture local talent by partnering with Georgia Piedmont Technical College to offer education tailored to industry needs, equipping individuals with practical skills for the workforce.
“Creating a broad-based advanced packaging ecosystem is crucial to the success of revitalizing the US semiconductor industry, and this all begins with substrates,” Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie Locascio said in a press statement.
Absolics CEO Jun Rok Oh added: “With the support of this proposed CHIPS funding, Absolics would be able to fully commercialize our pioneering glass substrate technology for use in high-performance computing and cutting-edge defense applications. This effort is an important component of establishing a robust semiconductor advanced packaging ecosystem in the State of Georgia and restoring the US’s leadership in semiconductor industry.”
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