Absolics, a glass substrate subsidiary of South Korea's SKC, has received $40 million (Approximately 290 million yuan) in production subsidies from the U.S. Department of Commerce under the CHIPS Act, marking the first disbursement of a total $75 million package. The funding supports Absolics' $300 million investment in a glass substrate manufacturing facility in Covington, Georgia.

This initial payment makes Absolics the first materials and equipment supplier to receive CHIPS Act subsidies. The company is currently producing prototype glass substrates at its first plant, with an annual capacity of 12,000 square meters. Plans are also underway to build a second facility spanning over 72,000 square meters to scale up production.

Glass substrates are regarded as a breakthrough in advanced semiconductor packaging. The technology is especially suited for AI and high-performance computing applications, and global chip leaders such as Intel and NVIDIA are eyeing glass substrates for commercialization as early as 2026. Market research firm Omdia projects the global semiconductor packaging market to grow from $65 billion in 2023 to $95 billion by 2028, with glass substrates expected to gain a rising share.

Absolics was also previously selected as a recipient of a $100 million research and development grant under the U.S. National Advanced Packaging Manufacturing Program (NAPMP). It is the only company in the glass substrate space to receive both manufacturing and R&D support. Its consortium includes over 30 partners spanning global tech companies, academia, and nonprofit institutions.

Despite uncertainty over the CHIPS Act's future under a potential second Trump administration, the funding signals strong U.S. confidence in Absolics' competitiveness. SKC, which launched the glass substrate business in 2021, continues to work toward commercialization through industry-academic collaboration and ecosystem building.

An SKC spokesperson said, “As global competition in semiconductor technologies intensifies, this funding confirms the U.S. government's recognition of Absolics' potential. We will continue expanding partnerships with global chipmakers.”