U.S. Chip Plant Delays: Micron, Amkor, SK Hynix Face $5M Daily Losse

The CHIPS and Science Act provides $52 billion in funding for domestic semiconductor manufacturing in the U.S., but multiple projects face delays due to environmental reviews and local opposition. Amkor's $2 billion advanced packaging plant in Arizona is encountering resistance from residents concerned about water usage and traffic congestion, potentially jeopardizing its planned 2027 launch. Micron's $100 billion DRAM facility in New York has seen its environmental assessment delayed and public pushback mount, resulting in $5 million in daily losses and forcing the postponement of its originally scheduled 2024 groundbreaking. Meanwhile, SK Hynix's $3.9 billion HBM plant in Indiana was ultimately approved but only after a contentious seven-hour hearing addressing residents' objections to industrial zoning near residential areas.

These projects are critical to the U.S. semiconductor supply chain, yet community resistance highlights the tension between industrial expansion and local interests. Amkor’s facility is a key supporting element for TSMC’s Arizona fab, Micron’s project aims to achieve 40% domestic DRAM production, and SK Hynix’s plant is poised to become a global leader in DRAM assembly. However, persistent delays threaten long-term corporate strategies—Micron’s 2030s production targets, for instance, now face uncertainty.

To address these challenges, some states are establishing pre-approved industrial zones to expedite approvals by pre-planning infrastructure and holding companies more accountable. Analysts note that permitting efficiency has become a decisive factor in attracting semiconductor investments, and the current disputes underscore the need to strike a balance between industrial development and community concerns.