Commerce Department Grants Absolics $75M Funding to Further Develop Advanced Packaging Solution

The Department of Commerce is extending up to $75 million in direct funding to Absolics, an affiliate of South Korea-based SKC, to fund the construction of a facility in Covington, Georgia, and develop a substrate technology for semiconductor advanced packaging use.

The non-binding preliminary memorandum of terms signed by the two organizations marks the first time the CHIPS Act has provided a grant to a commercial facility engaged in manufacturing a new advanced material. 

Absolics was selected to receive funding to expand advanced packaging substrates in the United States, moving the center of the advanced packaging substrates market from Asia, Commerce .gov reported. 

Advanced packaging is a crucial part of semiconductors, as more capable substrates allow for greater innovation at every other level in the packaging process. Absolics’ glass substrates help increase the performance of chips for artificial intelligence, high-performance computing and data centers. 

The grant provided to Absolics comes after the Commerce Department awarded about $285 million to participants of the first CHIPS Manufacturing USA Institute, which is expected to develop, validate and use digital twins for semiconductor manufacturing.