Absolics secures $100 mn U.S. grant for glass substrate R&D

Absolics Inc., a U.S. subsidiary of SKC Co. specializing in semiconductor glass substrates, was awarded $100 million in research and development (R&D) subsidies from the U.S. government.

According to industry sources on Thursday, the U.S. Department of Commerce selected the Absolics consortium as the recipient of the funding under the National Advanced Packaging Manufacturing Program (NAPMP), an R&D initiative of the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act.

The consortium, led by Absolics, reportedly includes several major U.S. technology companies at the forefront of artificial intelligence (AI) and semiconductors. The achievement underscores Absolics’ technological competitiveness and is expected to accelerate its business expansion in the United States. The company’s glass substrate R&D is also anticipated to generate synergies with the AI chip alliance between SK hynix Inc. and Nvidia Corp. Absolics aims to cement its leadership in glass substrate R&D while ramping up efforts to mass-produce customized products for its clients.

Glass substrates, which Absolics is poised to commercialize globally for the first time, represent a significant advancement over conventional plastic-based semiconductor substrates. Glass substrates are thinner and consume over 30 percent less power than their plastic counterparts, offering key advantages for next-generation semiconductors.

“This NAPMP subsidy reaffirms the innovative potential of Absolics,” an SKC official said, expressing the company‘s determination to maintain its leadership in the glass substrate market.

The NAPMP provides U.S. government R&D funding under the CHIPS Act to support advanced technologies in semiconductor materials and components. It allocates up to $3 billion for next-generation packaging technologies, including 418.4 billion won for next-generation substrates. Absolics secured approximately one-third of the substrate funding, positioning itself as a leader in this critical field.

The U.S. government’s recognition of Absolics highlights the transformative potential of glass substrates, which are considered a paradigm-shifting component in the semiconductor industry. Absolics became the first global semiconductor materials components in May 2024, as well as the first equipment company to receive a $75 million manufacturing subsidy under the CHIPS Act.

SKC has steadily worked toward commercialization since launching its glass substrate business in 2021. The company completed its first plant with an annual production capacity of 12,000 square meters in the first half of 2024 and plans to begin mass production by the end of the year. A second plant with significantly higher capacity is also under consideration.

“Forming a consortium with major U.S. tech companies and securing subsidies highlights Absolics’ recognized technological prowess within the semiconductor industry,” an industry insider said, while also predicting that glass substrate technology will be widely applied in AI chips.