Semiconductor Facilities Face Local Resistance and Delays in the U.S.
Delays in CHIPS Act-funded fabrication plants in New York, primarily affecting Micron, Amkor, and SK hynix, due to local opposition and two-year permit issues, resulting in daily costs of $5 million.
In the race to ramp up domestic semiconductor production, several projects are encountering hurdles due to environmental reviews and local residents' protests, with companies finding themselves embroiled in "NIMBY fights" and navigating two-year permitting processes. Here's a rundown of the situations surrounding Amkor's Advanced Packaging Facility in Arizona, Micron's Dram Fab in New York, and SK hynix's HBM Facility in Indiana.
The $2 Billion Showdown in Arizona
Amkor's ambitious plan to construct a chip packaging facility near Peoria, Arizona, is butting heads with local residents of Vistancia. Neighbors are vehemently opposing Amkor's proposed site due to concerns over potential strain on water resources and traffic congestion. Some residents have even threatened legal action and are calling for the project to be relocated.
The advanced packaging facility boasts over 500,000 square feet of cleanroom space when completed and is essential for the local semiconductor supply chain that already includes TSMC's Fab 21 campus and over a dozen suppliers. Apple has also committed to building chips at TSMC's Fab 21 and packaging them at Amkor's facility.
The Saga of Micron's Massive Campus
Micron's planned $100 billion DRAM production site in Clay, New York, has experienced setbacks in its schedule. The environmental review has been delayed, and the public feedback period has been extended through August. Consequently, construction, initially slated for 2024, cannot commence until community objections are addressed.
The campus was anticipated to become Micron's largest manufacturing site to date and one of the biggest semiconductor facilities in the United States. The site is expected to boast four clean rooms totaling 600,000 square feet, almost eight times larger than the clean room space at GlobalFoundries' Fab 8 facility.
SK Hynix's Seven-Hour Battle
In West Lafayette, Indiana, SK hynix secured approval for its $3.9 billion HBM production site, but it took a grueling seven hours to convince the city council. Local residents had opposed the rezoning of over 120 acres near their homes, nearly thwarting the project. Residents raised concerns about industrial development in residential zones.
The HBM facility promises to be one of the most sophisticated DRAM assembly facilities globally when it becomes operational in 2028. The plant is projected to create up to 1,000 jobs, and SK hynix also intends to partner with Purdue University for future R&D projects.
Preventing Delays Through Strategic Planning
To prevent similar delays in future developments, some states are setting up pre-approved industrial locations equipped with utilities and baseline environmental clearance. North Carolina, Pennsylvania, and Ohio have funded large-scale sites, designed to host manufacturing operations without lengthy permitting procedures.
Supporters of this strategy argue that early-stage preparation reduces costs, simplifies compliance, and accelerates supplier commitments. By planning infrastructure in advance, states can also impose penalties if promised investments fail to materialize, ensuring greater accountability from companies.
In the competitive landscape of global technology development, the speed at which facilities can be permitted has become a crucial factor in determining the pace of semiconductor manufacturing expansion and the attractiveness of a country for large chipmakers. Be sure to stay tuned to Tom's Hardware for the latest news, reviews, and analysis in the world of technology.
- The financial implications of delays in the manufacturing industry are evident, as shown by Amkor's Advanced Packaging Facility in Arizona, where legal threats and calls for relocation could potentially add significant costs to the $2 billion project.
- As the race for technological supremacy continues in the semiconductor industry, strategically planned industrial locations have emerged as a key factor, with states like North Carolina, Pennsylvania, and Ohio creating pre-approved sites to attract investors, speed up permitting processes, and reduce costs, thereby boosting competitiveness.
