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Absolics, feds agree to PMT providing $75 million in federal funding

COVINGTON, Ga. – A proposed semiconductor plant in Covington is set to receive $75 million in federal funding.

On Thursday, May 23, the Biden-Harris administration announced that Absolics Inc., an affiliate of the South Korea-based SKC, and the U.S. Department of Commerce have agreed to a non-binding preliminary memorandum of terms (PMT) that will provide up to $75 million in federal funding.

Absolics provides glass substrates for semiconductor packages that are used in various technology products.

The funding would come under the CHIPS and Science Act that was passed back in August 2022.

Funds would be used to support construction of the 120,000 square-foot facility in Covington that originally broke ground on Nov. 1, 2022. The investment will also support an estimated 1,000 construction jobs and 200 research and development jobs.

Chief executive officer of Absolics Jun Rok Oh provided insight on what this would mean for the semiconductor company.

“With the support of this proposed CHIPS funding, Absolics would be able to fully commercialize our pioneering glass substrate technology for use in high-performance computing and cutting-edge defense applications. This effort is an important component of establishing a robust semiconductor advanced packaging ecosystem in the State of Georgia and restoring the U.S.’s leadership in semiconductor industry,” Rok Oh said. “Our new facility in Covington will not only enhance our ability to produce high-quality glass substrates but also create high-skilled jobs and drive innovation through our partnership with Georgia Tech.

“Absolics is proud to contribute to the resilience and competitiveness of the American semiconductor industry.”

U.S. Secretary of Commerce Gina Raimondo also provided a statement on the magnitude of the agreed PMT.

“An important part of the success of President Biden’s CHIPS program is ensuring the United States is a global leader in every part of the semiconductor supply chain, and the advanced semiconductor packaging technologies Absolics is working on will help to achieve that goal, while also creating hundreds of jobs in Georgia,” Raimondo said. “Through this proposed investment in Absolics, the Biden-Harris Administration is helping accelerate innovation, advance U.S. technological leadership in semiconductor manufacturing, and generate economic opportunity in the Atlanta area and throughout the state.”

Absolics and SKC executives will host an event on Friday with federal, state and local officials expected to be in attendance.