The Department of Commerce awarded Absolics, a subsidiary of the Korea-based SKC, up to $75 million in direct funding which 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. This investment in Absolics commercial facility will support the U.S. semiconductor supply chain by manufacturing a new advanced material.
Absolics glass substrates will be used as an important advanced packaging technology to increase the performance of leading-edge chips for AI, high-performance compute and data centers by reducing power consumption and system complexity. The glass substrates produced by Absolics 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 this CHIPS investment, U.S.-based companies would have an expanded domestic supply of glass substrates for advanced packaging.
Advanced packaging is an essential component for U.S. companies to improve semiconductor applications. The path to advanced packaging starts with substrates, which are the foundations on which systems are built. More capable substrates open the door to innovation at every other level in the packaging process.
Through Absolics’ construction and manufacturing operations, this investment is expected to support approximately 1,200 construction, manufacturing and R&D jobs in Covington. To recruit, train, and retain the workforce needed for these projects, Absolics will implement a robust workforce strategy informed by the Biden-Harris Administration’s Good Jobs Principles.
To advance its manufacturing workforce efforts:
Through the end of the decade, Absolics will make community investments of over $100,000 each year into workforce development, training, and placement, as well as into local special education and environmental programs.
In connection with the CHIPS award, the Department is requiring Absolics to commit to the following environmental responsibility and worker safety measures in its operations. As is required for all CHIPS projects, Absolics’ project will comply with all applicable environmental laws, including the Clean Water Act, Clean Air Act, Endangered Species Protection Act, and the Resource Conservation and Recovery Act.
In connection with the CHIPS award, Absolics is making the following environmental commitments:
Absolics is also committing to the following worker safety measure:
As stated in the CHIPS Notice of Funding Opportunity (NOFO) for Commercial Fabrication Facilities, CHIPS for America will disburse direct funding to the company for capital expenditures spent on the projects based on the completion of construction, technology, production, and commercial milestones. The CHIPS Program Office will track the performance of each CHIPS Incentives Award via financial and programmatic reports, in accordance with the award terms and conditions. All CHIPS funding recipients are required to adhere to restrictions pursuant to the CHIPS Act and NOFO regarding stock buybacks and national security guardrails, which limit the sharing of intellectual property. For the period on the award date and ending on the fifth anniversary of the award date, Absolics has committed to not engage in any stock buybacks or make dividends to shareholders.
Absolics Project Overview | ||
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Project Summary | Recipient | Absolics |
Location(s) | Covington, Georgia | |
Congressional District | Georgia's 10th Congressional District | |
Financial Summary | Program | CHIPS Program Office |
Direct Funding Amount | Up to $75 million | |
Expected Capital Expenditure | $343 million | |
Facility Summary | Project Type | Construction and technology development |
Technology | Glass substrates to support advanced packaging | |
Project Timeline | First deliveries to customers are expected in 2025 and production capacity is expected to kick in 2027 |