The Biden Administration has directed $75 million to be spent on helping build a factory in Covington, Ga., to manufacture glass parts for computer chips.
On May 23, the federal government announced that the U.S. Department of Commerce and Absolics, an affiliate of South Korea-based SKC, have signed a non-binding preliminary agreement to provide the funding under the 2022 CHIPS and Science Act to help advance U.S. technology leadership.
The Associated Press (AP) reported that the proposed CHIPS investment would support the construction of a 120,000-sq.-ft. facility in the town of Covington, east of Atlanta, and the development of substrates technology for use in semiconductor advanced packaging.
The proposed investment with Absolics is the first proposed CHIPS investment in a commercial facility supporting the semiconductor supply chain by manufacturing a new advanced material.
The plant was first proposed in 2021, but Absolics said that it will now spend more than $300 million on a first phase, with plans to hire an initial 200 workers. The company could spend more money and hire more workers later, company spokesperson Kelsey Flora said in a news release, possibly bringing its total workforce to as many as 1,200 employees.
Construction is under way, and test batch production has begun, she added. Production is due to begin increasing in 2025, the AP learned.
The facility will make a glass substrate that is used to package semiconductors. Federal officials said the substrate will enable more densely packed connections between semiconductors, leading to faster computers that use less electricity.
The federal CHIPS and Science Act authorized the spending of $280 billion to aid the research and manufacturing of semiconductors in the United States.
Atlanta's Georgia Institute of Technology was involved in the development of the glass substrate for Absolics, according to the AP. SK Group hired a former researcher from the university to help commercialize the substrate.
"It is strategically essential that the United States have this domestic manufacturing capacity, and it's a tremendous opportunity for the state of Georgia to lead the nation in manufacturing and innovation," U.S. Sen. Jon Ossoff, a Georgia Democrat, and a leading supporter of the effort, told reporters during the project's unveiling.
SK Group also owns an adjoining plant that makes polyester films on solar panels, in packaging, and for other uses. Additionally, the Korean conglomerate operates a $2.6 billion complex to make batteries for electric vehicles in Commerce, northeast of Atlanta.
Another Boost to Georgia's Manufacturing Sector
Because of the CHIPS and Science Act, the proposed investment also would support an estimated 1,000 construction jobs, in addition to the 200 manufacturing and research and development jobs in Covington. It also would enhance innovation capacity at Georgia Tech to boost the local semiconductor talent pipeline, according to the federal Department of Commerce.
Started through a collaboration with the 3D Packaging Research Center at Georgia Tech, the Absolics project serves as an example of American laboratory-to-fabrication development and production, noted U.S. Secretary of Commerce Gina Raimondo.
"An important part of the success of President Biden's CHIPS program is ensuring the United States is a global leader in every part of the semiconductor supply chain, and the advanced semiconductor packaging technologies Absolics is working on will help to achieve that goal, while also creating hundreds of jobs in Georgia," she explained in a news release.
Raimondo added that the investment in Absolics by the Biden Administration "is helping accelerate innovation, advance U.S. technological leadership in semiconductor manufacturing, and generate economic opportunity in the Atlanta area and throughout the state."
The glass substrates produced by Absolics will be used as an important advanced packaging technology to increase the performance of leading-edge chips for artificial intelligence (AI), high-performance computers, and data centers by reducing power consumption and system complexity. The products enable smaller, more densely packed, and shorter length connections resulting in faster and more energy efficient computing.
Currently, the advanced packaging substrates market is concentrated in Asia, and, because of the proposed CHIPS investment, U.S.-based companies would have an expanded domestic supply of glass substrates for advanced packaging, an essential component for domestic companies to improve semiconductor applications.
While Absolics will continue its R&D work with Georgia Tech, it has also committed to working with and developing local talent through a partnership with Georgia Piedmont Technical College in Covington to provide work-ready education and hands-on skill training.
"This effort is an important component of establishing a robust semiconductor advanced packaging ecosystem in the State of Georgia and restoring the U.S.'s leadership in semiconductor industry," explained Absolics CEO Jun Rok Oh. "Our new facility in Covington will not only enhance our ability to produce high-quality glass substrates but also create high-skilled jobs and drive innovation through our partnership with Georgia Tech."
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