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Amkor Will Create 2,000 New Jobs In Arizona

In Peoria, AZ, Amkor will invest $2 billion to build what will be the largest outsourced advanced packaging and test facility in the U.S.

Semiconductor packaging and test services provider Amkor Technology, Inc. plans to build an advanced packaging and test facility in Peoria, Arizona. When the project is complete, Amkor expects to invest approximately $2 billion and employ approximately 2,000 people at the new facility.

Amkor is the only U.S.-headquartered OSAT (outsourced semiconductor assembly and test) service provider with advanced packaging technology capability and high-volume manufacturing experience. Upon completion, this will be the largest outsourced advanced packaging facility in the U.S.

“Expansion of a U.S. semiconductor supply chain is underway, and as the largest U.S.-headquartered advanced packaging company, we are excited to lead the charge in bolstering America’s advanced packaging capabilities,” said Amkor President and CEO Giel Rutten.

“Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint,” Rutten continued. “The announcement of our new advanced packaging and test facility in Arizona is a clear signal of our intent to help our customers ensure resilient supply chains and be a part of a strong American semiconductor ecosystem.”

Amkor Arizona
(Source: Amkor Technology, Inc.)

 

Amkor first established its presence in the Greater Phoenix area in 1984. Its new manufacturing location will uniquely position Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers with current or expanding presence in the area, including TSMC, Intel, Applied Materials, ASML and others.

Amkor has secured approximately 55 acres of land with intent to build a state-of-the-art manufacturing campus with more than 500,000 square feet of clean room space. The first phase of the manufacturing plant is targeted to be ready for production within two to three years. Amkor plans to provide high volume, leading-edge technologies for advanced packaging and testing of semiconductors to support critical markets such as high-performance computing, automotive, and communications.

“Amkor’s announcement is a historic step forward for Arizona that will bolster America’s national security and build a more resilient supply chain, bring billions of dollars into our state, and create thousands of good-paying jobs for Arizona workers,” said Governor Katie Hobbs. “With this project, one of the most significant investments in advanced packaging in America, Arizona will solidify itself as a world leader in the semiconductor industry. I was glad to meet with the Arizona Commerce Authority and Amkor leadership in South Korea to discuss future investments in Arizona and am proud to have them as a partner. Together, we’ll continue to expand the semiconductor ecosystem and continue Arizona’s long history of leadership in the advanced manufacturing sector.”

Amkor Grows With Federal & Local Support, Collaboration

Amkor worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility, which will package and test chips produced for Apple at the nearby TSMC fab. When the new facility opens, Apple will be its first and largest customer.

The project has garnered strong support from the City of Peoria, the Arizona Commerce Authority, and government authorities as it expands the semiconductor ecosystem and provides high-tech jobs in the Greater Phoenix metropolitan area.

Amkor has applied for funding through the CHIPS and Science Act, which was established to boost U.S. competitiveness, innovation, and national security in the semiconductor industry. As part of the $52.7 billion program, the federal government will award $39 billion to U.S. companies in competitive grants to manufacturers to finance construction, expansion, and modernization of facilities and equipment. These funds will be critical to Amkor’s project moving forward.

“Amkor’s $2 billion project—one of the largest microchip investments announced in Arizona since the passage of the CHIPS Act last year—will create good-paying jobs, strengthen our local economy, and help protect our national security,” said Arizona Senator Mark Kelly. “As one of the first advanced packaging facilities in the U.S., this is a huge step forward to reducing dependence on other countries in the microchip supply chain. When negotiating the CHIPS and Science Act, one of my top priorities was making sure companies like Amkor had the support needed to develop a resilient supply chain in places like Arizona that are leading the way in bringing microchip manufacturing back to America.”

“Amkor has been a strategic OSAT partner to TSMC for many years,” said Dr. CC Wei, Chief Executive Officer of TSMC. “TSMC applauds Amkor for investing in the future of the semiconductor industry with us in Arizona. We share Amkor’s excitement for its significant investment and the value this facility will bring to TSMC, our customers, and the ecosystem.”

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“Apple is committed to help build a new era of advanced manufacturing, right here in the U.S.,” said Jeff Williams, COO, Apple. “Apple and Amkor have worked together for more than a decade packaging chips used extensively in all Apple products, and we are thrilled that this partnership will now deliver the largest OSAT advanced packaging facility in the United States.”

“This new U.S. facility, in combination with our advanced facilities spanning Asia and Europe, further strengthens our broad geographic footprint, supporting global but also enabling regional supply chains,” added Rutten. “This investment will reinforce our leadership position in advanced packaging and test within the key markets we serve while solidifying our commitment to expanding U.S.-based chip manufacturing.”

Check out all the latest news related to Arizona economic development, corporate relocation, corporate expansion and site selection.

Advanced Manufacturing, Arizona, Capital Investment, Daily News, Economic Development, Featured, Incentives, Taxes & Financing, Industries, Industry Clusters/Hubs, Site Selection Factors, USA - Southwest, Workforce Development

Advanced Manufacturing, Advanced Packaging, Amkor, Amkor Technology, Arizona, Arizona Commerce Authority, Business Incentives, Capital Investment, CHIPS and Science Act, corporate expansion, Greater Phoenix, OSAT, Outsourced Semiconductor Assembly and Test, Peoria, Semiconductor Industry, Silicon Desert

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