Amkor Technology announces $2bn advanced packaging facility in Peoria, Arizona

Amkor Technology, Inc., a leader in semiconductor packaging and test services, has announced its significant investment plan for an advanced packaging and test facility in Peoria, Arizona. The project, marking a substantial commitment to the US semiconductor industry, is projected to involve approximately $2 billion in investment and create about 2,000 jobs.

Largest Outsourced Advanced Packaging Facility in the US

This facility will be the largest of its kind in the United States, showcasing Amkor’s leading position as the only US-headquartered OSAT (outsourced semiconductor assembly and test) service provider with advanced packaging technology capability.

Enhancing US Semiconductor Supply Chain

Giel Rutten, Amkor’s President and CEO, emphasized the company’s role in expanding the US semiconductor supply chain. The new facility in Arizona is set to play a critical role in enhancing America’s advanced packaging capabilities.

Semiconductor Giant Amkor Technology to Build $2 Billion Facility, Boosting US Chip Manufacturing

Congressional Support and the CHIPS Act

The project aligns with the US government’s focus on rebuilding American semiconductor manufacturing, as highlighted by Commerce Secretary Gina M. Raimondo. The CHIPS program underscores the importance of developing robust advanced manufacturing capacity.

Collaboration with Apple and TSMC

Amkor’s strategic vision for the Peoria facility, developed in collaboration with Apple, will focus on packaging and testing chips for Apple, produced at the nearby TSMC fab. The new facility will become Apple’s primary OSAT partner in the US upon completion.

Amkor’s Growing Presence in Arizona

Established in the Greater Phoenix area since 1984, Amkor’s expansion in Arizona positions the company among a thriving ecosystem of front-end fabs, IDMs, and suppliers, including TSMC, Intel, and others.

Local and Federal Support for the Project

The initiative has received strong support from local and federal authorities, including the City of Peoria, the Arizona Commerce Authority, and the federal government under the CHIPS and Science Act. This support underlines the project’s significance in bolstering US competitiveness and national security in the semiconductor industry.

Amkor’s Commitment to Global Supply Chain Resilience

Amkor’s investment in the Peoria facility, combined with its global presence, strengthens its geographic footprint and supports regional supply chains. This move reinforces Amkor’s leadership in advanced packaging and test services, contributing to the expansion of US-based chip manufacturing.