The United States is investing heavily to reduce its dependence on Asia's chip packaging industry

The US Department of Commerce recently announced a $3 billion plan to stimulate the development of the domestic chip packaging industry. The plan, called the National Advanced Chip Packaging Manufacturing Program, is part of the 2022 US Chip and Science Act, which aims to revitalize US semiconductor production.

Chip packaging is a key link in the semiconductor supply chain, involving the assembly of individual chips for commercial products such as mobile phones and automobiles, as well as military applications. In this field, the United States currently has relatively weak capabilities. According to the Deputy Secretary of Commerce Laurie Loscocco, the chip packaging capacity of the United States accounts for only 3% of the world, while China's chip packaging capacity is expected to account for 38% of the world.

Locacio said that the goal of the United States is to become a global leader in advanced chip packaging by 2030. To achieve this goal, the plan will be implemented in several stages. First, the first chip packaging funding opportunity will be released, with a focus on materials and substrates. Subsequent investments will focus on other packaging technologies and a broader design ecosystem. In addition, the plan also includes the establishment of an advanced packaging test facility, which aims to develop packaging technologies that can be used for U.S. production and investment in workforce training.

The announcement of this plan has attracted widespread attention from the industry. South Korean chip maker SK Hynix said it would invest $15 billion to establish advanced packaging facilities in the United States. Arizona Governor Katie Hobbs also announced that the state was in negotiations with industry leaders such as Taiwan Semiconductor Manufacturing Company (TSMC) to add packaging capacity to its $40 billion Phoenix project.

Chris Camacho, CEO of the Greater Phoenix Economic Council, said that Arizona is in "mid-term" negotiations with multiple global packaging companies, testing and quality assurance companies, but he declined to disclose which companies are involved. With the launch of the U.S. Department of Commerce's plan, more companies may join this field in the future. The U.S. Department of Commerce's chip packaging plan also includes the establishment of an advanced packaging pilot facility, aimed at developing packaging technologies that can be used for U.S. production, and investing in workforce training.