Absolics Inc., a U.S. subsidiary of South Korea's SKC Ltd., has been awarded up to $100 million (724 million yuan) in research and development (R&D) grants from the U.S. Department of Commerce under the National Advanced Packaging Manufacturing Program (NAPMP). This funding is part of the broader CHIPS for America initiative, designed to bolster the U.S. semiconductor industry by investing in next-generation technologies and advanced packaging capabilities.

Absolics, which specializes in cutting-edge glass substrates for semiconductors, is a key player in the U.S. semiconductor supply chain. The company's innovative glass substrates, which are thinner, more power-efficient, and offer superior performance over traditional plastic-based substrates, are seen as a transformative component for the future of semiconductors. These advanced substrates are particularly important for AI chip development, as they enhance energy efficiency and enable the miniaturization of chip packaging.

The $100 million R&D grant is part of a $300 million pool allocated by the U.S. government, with Absolics being one of three recipients alongside Applied Materials Inc. and Arizona State University. The funding will support Absolics' ongoing efforts to further develop and mass-produce these next-generation substrates, with plans for a groundbreaking new plant in Covington, Georgia. The Covington facility, set to begin mass production by 2025, will be the world's first dedicated glass substrate production plant with an annual capacity of 12,000 square meters.

This recognition follows Absolics' earlier success in securing $75 million in production subsidies under the CHIPS Act in 2024, cementing its leadership in the field of semiconductor substrates. With the new R&D funding, Absolics aims to accelerate its progress in developing the next wave of semiconductor packaging technologies, particularly in collaboration with over 30 partners, including leading academic institutions and tech companies.

SKC's acquisition of Absolics in 2021 has enabled the company to expand its presence in the U.S. market, with plans for additional plants to scale production. The second plant, once operational, will have a capacity of over 72,000 square meters, significantly boosting Absolics' output and positioning it to meet the increasing demand for advanced packaging solutions as the semiconductor industry continues to evolve.

As chip packaging technology plays an increasingly vital role in the performance of next-generation semiconductors, this funding from the U.S. government highlights the strategic importance of Absolics' work in advancing materials that will drive the future of artificial intelligence, autonomous systems, and other emerging technologies. Laurie E. Locascio, the U.S. under secretary of commerce for standards and technology, emphasized the significance of advanced packaging, stating that it is crucial to maintaining the U.S. competitive edge in the global semiconductor market.

Through this partnership and government support, Absolics is poised to become a major player in the global semiconductor market, accelerating the innovation of AI and other cutting-edge technologies through its advanced glass substrate solutions.