Amkor Technology, Inc. has announced its plan to build an advanced packaging and test facility in Peoria, Arizona. Moreover, by the time of full project completion, Amkor projects to invest approximately $2 billion and employ around 2,000 people.

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

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

In addition, Rutten said, “Semiconductor companies, foundries, and other supply chain partners understand the need to strategically broaden their geographic footprint. 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.”

State-of-the-Art Facility

In recent Congressional testimony, Commerce Secretary Gina M. Raimondo highlighted advanced packaging as a major area of focus for the US government’s effort to rebuild American semiconductor manufacturing. The Commerce Department made clear that developing robust advanced manufacturing capacity and capability is a key priority. Furthermore, it is essential to the success of the CHIPS program.

Amkor has secured approximately 55 acres of land with the 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 should be ready for production within the next two to three years. Moreover, 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 worked closely with Apple on the strategic vision and initial manufacturing capability of the Peoria facility. Particularly, this 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.

Amkor first established its presence in the Greater Phoenix area in 1984.

Thus, expanding its footprint in the evolving Arizona semiconductor industry. The new manufacturing location will uniquely position Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers. Furthermore, with current or expanding presence in the area, including TSMC, Intel, Applied Materials, ASML, and others.

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

Resilient Supply Chain

Meanwhile, to ensure the success of a project of this magnitude in the United States, Amkor has applied for CHIPS funding. The CHIPS and Science Act aims to boost US 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,” Arizona Senator Mark Kelly said. “As one of the first advanced packaging facilities in the US, 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’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.

Finally, Rutten said, “This new US 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.” “This investment will reinforce our leadership position in advanced packaging and test within the key markets we serve while solidifying our commitment to expanding US-based chip manufacturing.”