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Absolics (Georgia)

Covington, GA 30014
Congressional District
10th District

Key Facts

CHIPS for America award banner for Absolics' Covington, Georgia location for 75 million in direct funding

Project Summary

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. 

Economic and National Security Impact

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.

Workforce and Community Impact

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:

  • Absolics is developing local talent by partnering with Georgia Piedmont Technical College to provide work-ready education and hands-on skill training.
  • Absolics is partnering with Georgia Quick Start to recruit, screen, place, and train potential employees.

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.

Environmental and Worker Safety Commitments

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:  

  • Carbon-Free Electricity: By the end of the decade, Absolics will use commercially reasonable efforts to operate the project with 100% carbon-free energy.
  • Water: By the end of 2026, Absolics will use commercially reasonable efforts to recycle at least 80% of the process water used onsite and will aim to achieve a Net Positive Water Impact by the end of 2030.
  • Public Reporting: Absolics will disclose annual progress toward environmental goals, including:
    • energy (kWh) used, saved through conservation programs, and produced from clean energy sources;
    • water used, conserved, and recycled; and
    • total waste generated and percentage total hazardous and nonhazardous waste destined for a landfill, incinerator, recycling facility, or treatment facility.

Absolics is also committing to the following worker safety measure:

  • Worker Safety Committee: Absolics will establish a worker safety committee for the facility workforce comprised of workers and management that meets regularly and is authorized to address any worker health and safety concerns.

Financial and Commercial Terms

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

Project Summary

RecipientAbsolics
Location(s)Covington, Georgia
Congressional DistrictGeorgia's 10th Congressional District

Financial Summary

ProgramCHIPS Program Office
Direct Funding AmountUp to $75 million
Expected Capital Expenditure$343 million

Facility Summary

Project TypeConstruction and technology development
TechnologyGlass substrates to support advanced packaging
Project TimelineFirst deliveries to customers are expected in 2025 and production capacity is expected to kick in 2027

Progress Photos

Image of Absolics SVM line construction
Credit: Absolics
Photo of Absolics SVM Line Construction
Credit: Absolics
Photo of equipment operation
Credit: Absolics
 
 
Photo of SVM Line construction
Credit: Absolics

 

Photo of Absolics SVM Line
Credit: Absolics
Photo of Absolics equipment installation
Credit: Absolics
Award Amount
$75 million in direct funding
Application Stage
Final Award
CHIPS Organization
CHIPS Program Office