In order to enhance the competitiveness of the United States in the field of chip packaging, the US government announced on Monday that it will invest about $3 billion (IT House Note: currently about 21.51 billion yuan) to support the US chip packaging industry, which is the first R & D investment under the Chip and Science Act.

Chip packaging is the last step in the process of integrated circuit production, and its main purpose is to wrap the exposed integrated circuit chip in a layer of protective material and provide functions such as connection pins, heat dissipation and power management. Packaging can choose different packaging forms and packaging materials according to the type of chip and application requirements. The technical level and production capacity of chip packaging directly affect the quality and supply of chips.

At present, the United States accounts for only 3% of the world's production capacity in chip packaging. By contrast, China accounts for 38% of the world's chip packaging capacity. This means that US-made chips need to be shipped overseas for packaging, and Laurie Locascio, deputy commerce secretary, said in announcing the investment plan: "We cannot accept that chips are made in the US and then shipped overseas for packaging, which poses risks to the supply chain and national security."

In order to change this situation, the US government decided to allocate US $3 billion from the US $11 billion in research and development funds under the Chip and Science Act to develop the US chip packaging industry. The money will be managed by the U.S. Department of Commerce's National Institute of Standards and Technology, which will establish a state-of-the-art chip packaging pilot facility and fund new labor training programs and other programs.

In announcing the investment plan, Rocacio also said that the goal of the US government is that by 2030, the United States will have a number of large quantities of advanced packaging facilities and become the global leader in batch advanced packaging of the most complex chips. Locacio also said that the Commerce Department is expected to announce the first material and substrate funding opportunities for its chip packaging program next year, while future investment will focus on other packaging technologies and a broader design ecosystem.

Inspired by the American Chip Act, many foreign companies have planned to land packaging projects in the United States. It is reported that South Korean chipmaker SK Hynix plans to invest 15 billion US dollars to build advanced packaging facilities in the United States. TSMC is also in talks with Arizona to build a state-of-the-art packaging plant.

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