The US Department of Commerce announced the investment Thursday in Absolics, part of South Korea’s SK Group
The US government is investing $75million to aid the construction of a factory in Covington, Georgia, that will produce glass components for computer chips, according to an announcement by the US Department of Commerce.
The investment is being made in Absolics, a part of South Korea’s SK Group, which first announced plans for the plant in 2021. The company revealed on Thursday that it intends to invest over $300million in the initial phase of the project, creating 200 jobs in the process.
Further investment and job creation could follow, said spokesperson Kelsey Flora. Construction work has already begin with test batch production underway, Flora confirmed. Production levels are expected to ramp up from 2025.
The factory will manufacture a glass substrate used in the packaging of semiconductors. Federal officials have highlighted that this substrate will allow for more densely packed connections between semiconductors, resulting in faster, more energy-efficient computers.
The Department of Commerce noted that this marks the first time the CHIPS and Science Act has been utilised to fund a factory producing a new advanced material for semiconductors. This federal law, passed in 2022, authorised a $280billion spend to support semiconductor research and manufacturing within the United States.
The technology behind the project was developed at Georgia Tech in Atlanta, with SK Group recruiting a former researcher from the university to assist in commercialising the substrate.
US Sen. Jon Ossoff, a Georgia Democrat, said: “It is strategically essential that the United States have this domestic manufacturing capacity, and it’s a tremendous opportunity for the state of Georgia to lead the nation in manufacturing and innovation,” He has been backing the initiative.
SK Group, the Korean conglomerate, owns a neighbouring plant that produces polyester films suitable for solar panels, packaging, and other applications. The company also owns a $2.6billion complex dedicated to manufacturing batteries for electric vehicles, located in Commerce, northeast of Atlanta.
