Biden-Harris Administration Announces CHIPS Incentives Awards with Absolics and Entegris to Support Development of Advanced Packaging Technology and Onshore Materials for Leading-Edge Chip Production

CHIPS Incentives Awards in Georgia and Colorado Would Advance U.S. Technology Leadership and Supply Chain Security

December 5, 2024 -- Today, the Biden-Harris Administration announced that the U.S. Department of Commerce has finalized two separate awards under the CHIPS Incentives Program’s Funding Opportunity for Commercial Fabrication Facilities. The Department awarded Absolics, an affiliate of the Korea-based SKC, up to $75 million in direct funding, and awarded Entegris up to $77 million in direct funding. The awards come after the previously signed preliminary memoranda of terms, announced on May 23, 2024, and June 26, 2024, respectively, and the completion of the Department’s due diligence. The Department will distribute the funds based on the companies’ completion of project milestones.

“The Biden-Harris Administration’s investments in Absolics and Entegris are another example of how we are making investments up and down the semiconductor supply chain to advance U.S. economic and national security,” said U.S. Secretary of Commerce Gina Raimondo. “As a result of these investments, the states of Colorado and Georgia will play an important role in revitalizing the U.S. semiconductor industry while creating thousands of jobs in the process.”

“Today’s announcement shows how we’re putting President Biden’s CHIPS and Science Act to work,” said Assistant to the President for Science and Technology and Director of the White House Office of Science and Technology Policy Arati Prabhakar. “These new facilities will develop cutting-edge technologies that are essential to U.S. semiconductor leadership. And that means that as they create good-paying jobs that support families, they will be bolstering our national security and strengthening our economy.”

The awards announced today would support the following projects:

• Absolics: The Department’s award of up to $75 million supports the construction of a 120,000 square-foot facility in Covington, Georgia, and the development of substrates technology for use in semiconductor advanced packaging. Absolics glass substrates will be used as an important advanced packaging technology to increase the performance of leading-edge chips for AI and high-performance compute and data centers by reducing power consumption and system complexity. Currently, the advanced packaging substrates market is concentrated in Asia, and because of this investment, U.S.-based companies will have an expanded domestic supply of glass substrates for advanced packaging. This investment is expected to support approximately 1,200 construction, manufacturing, and R&D jobs. For more information about the award, please visit the CHIPS for America website.
• Entegris: The Department’s award of up to $77 million will onshore critical semiconductor supply chain and manufacturing equipment materials for leading-edge chip production and support Entegris’ construction of its state-of-the-art manufacturing center in Colorado Springs, Colorado. Entegris is a leading supplier of advanced materials and process solutions for the semiconductor industry. The manufacturing center, which is targeted to begin initial commercial operations in 2025, will initially support production of liquid filtration products, as well as Front-Opening-Unified Pods (FOUPs). FOUPs are highly specialized containers that secure semiconductor wafers while they are handled and transported during the manufacturing process. These internal transportation systems have dramatically enhanced the production of semiconductor manufacturing over the last two decades with some of the world’s largest chipmakers being major customers for these carriers. The investment is expected to create approximately 900 jobs. For more information about the award, please visit the CHIPS for America website.

“With the stable securing of funding, we will be able to proceed smoothly with the planned commercialization of the glass substrate. We will continue to promote research and development to maintain a technological edge based on our glass substrate technology,” said a SKC Spokesperson. 

“We are pleased to receive this important funding to help strengthen the U.S. semiconductor industry infrastructure,” said Entegris President and Chief Executive Officer Bertrand Loy. “This further expands our ability to meet the critical needs of our customers while contributing back to the local economy in Colorado Springs.”

As stated in the CHIPS Notice of Funding Opportunity for Commercial Fabrication Facilities, CHIPS for America will distribute direct funding to recipients for capital expenditures based on the completion of construction, production, and commercial milestones. The program will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions.

About CHIPS for America

CHIPS for America has awarded over $19 billion of the over $36 billion in proposed incentives funding allocated to date. These announcements across 20 states are expected to create over 125,000 jobs. Since the beginning of the Biden-Harris Administration, semiconductor and electronics companies have announced over $450 billion in private investments, catalyzed in large part by public investment. CHIPS for America is part of President Biden and Vice President Harris’s economic plan to invest in America, stimulate private sector investment, create good-paying jobs, make more in the United States, and revitalize communities left behind. CHIPS for America includes the CHIPS Program Office, responsible for manufacturing incentives, and the CHIPS Research and Development Office, responsible for R&D programs, that both sit within the National Institute of Standards and Technology (NIST) at the Department of Commerce. Visit chips.gov to learn more.