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Amkor Technology announced plans yesterday to build a $2 billion advanced packaging and semiconductor testing facility in Peoria, Arizona, expanding the company’s supply chain in the United States.
The site, which Amkor says will be the largest outsourced packaging plant in the United States, will create approximately 2,000 jobs and span more than 500,000 square feet.
“The expansion of a U.S. semiconductor supply chain is underway, and as the largest U.S.-based advanced packaging company, we are excited to lead the charge to strengthen the advanced packaging capabilities of United States,” President and CEO Giel Rutten said in a statement.
The first production phase of the facility is expected to be operational within the next two to three years and will focus on advanced packaging and semiconductor testing for markets such as high-performance computing, automotive and communications
Amkor partnered with Apple on the manufacturing facility, which will package and test chips produced for the iPhone maker at a nearby Taiwan Semiconductor Manufacturing Company semiconductor factory. When Amkor’s new facility opens, Apple will be its first and largest customer, the company said.
TSMC started first semiconductor factory in Arizona in 2021, one of two sites it is building in the state as part of a $40 billion investment. Arizona’s first chip factory was slated to open next year, but it did roll back to 2025 due to challenges in finding workers with experience installing chip equipment.
The second TSMC facility in Arizona, which will make 3nm process technology, is still set to open in 2026.
of Amkor The new manufacturing location will place the company among an ecosystem of chipmakers and suppliers in Arizona, including major players such as TSMC, Intel and Applied Materials.
The multi-million dollar investment aligns with the The push from the Biden administration to strengthen domestic semiconductor manufacturing. The project has received support from the city of Peoria and the Arizona Commerce Authority, according to Amkor. The Peoria City Council is scheduled to review a final development agreement in early 2024.
Amkor noted in its announcement that it applied for money through the CHIPS and Science Act to help fund the project. The Commerce Department unveiled plans earlier this month to use funds from the law to provide $3 billion in investment in chip packaging manufacturing.
