U.S. Grants $75M to Absolics, $77M to Entegris
On December 5, the Biden administration announced that the U.S. Department of Commerce has granted direct subsidies under the CHIPS and Science Act to two major projects: $75 million to Absolics, a subsidiary of South Korea's SKC, and $77 million to Entegris. These grants were approved following the signing of preliminary term memorandums (announced on May 23 and June 26, 2024) and a due diligence review conducted by the Department of Commerce. Funding will be allocated based on the completion of project milestones by both companies.
Absolics Project
The $75 million grant will support the construction of a 120,000-square-foot facility in Covington, Georgia, and the development of advanced substrate technology for semiconductor packaging. Absolics’ glass substrates aim to enhance the performance of cutting-edge chips used in artificial intelligence, high-performance computing, and data centers by reducing power consumption and system complexity. Currently, the advanced packaging substrate market is concentrated in Asia. This investment will help establish a domestic supply of glass substrates in the United States, bolstering innovation and competitiveness. The project is expected to create approximately 1,200 jobs spanning construction, manufacturing, and R&D.
Entegris Project
The $77 million grant will support Entegris in developing critical semiconductor manufacturing materials and equipment. It will also fund the construction of a state-of-the-art manufacturing center in Colorado Springs, Colorado. Scheduled to begin initial commercial operations in 2025, the facility will focus on producing liquid filtration products and highly specialized containers called Front-Opening Unified Pods (FOUPs), which protect semiconductor wafers during the manufacturing process. FOUPs have significantly improved semiconductor production efficiency over the past two decades and are widely used by some of the world’s largest chip manufacturers. The project is expected to generate around 900 jobs.
