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SIA Applauds CHIPS Act Incentives for Absolics Project in Georgia
May 30, 2024 | SIAEstimated reading time: 1 minute
The Semiconductor Industry Association (SIA) released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Commerce Department and Absolics, an affiliate of the Korea-based SKC. The incentives, which are part of the CHIPS and Science Act, will support the construction of a 120,000 square-foot facility in Georgia and the development of substrates technology for use in semiconductor advanced packaging.
The Absolics announcement marks the first proposed CHIPS investment in a commercial facility supporting the semiconductor supply chain by manufacturing a new advanced material. The Commerce Department previously announced incentives for chipmakers Polar Semiconductor, Micron, Samsung, TSMC, Intel, GlobalFoundries, Microchip Technology, and BAE Systems.
“As the first proposed CHIPS Act incentives that will support the production of a material critical to the semiconductor supply chain, the Absolics announcement marks an important milestone in the implementation of this landmark law. By incentivizing dozens of U.S.-based semiconductor projects—totaling nearly $450 billion in company investments—CHIPS is on track to deliver a huge return on investment and significant benefits to America’s economy, national security, and supply chain resilience. We congratulate Absolics for this important, job-creating investment in Georgia and commend the Commerce Department for continuing to make progress in getting CHIPS funding out the door and directed to important projects throughout the semiconductor ecosystem.”
An SIA-Boston Consulting Group report released this month projects the United States will triple its domestic semiconductor manufacturing capacity from 2022—when CHIPS was enacted—to 2032. The projected 203% growth is the largest projected percent increase in the world over that time. The report also projects America will capture over one-quarter (28%) of total global capital expenditures (capex) from 2024-2032.
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