ARIZONA — In a move signaling a major boost for Arizona’s semiconductor industry, Amkor Technology, Inc. has announced plans to establish an advanced packaging and test facility in Peoria, representing a significant investment of approximately $2 billion and promising to create about 2,000 new jobs. This development is not just a landmark moment for the city of Peoria but also a pivotal step in strengthening America’s position in the global semiconductor market.
Amkor, a leading provider in semiconductor packaging and test services and the only U.S.-headquartered OSAT (outsourced semiconductor assembly and test) service provider with advanced packaging technology capability, has chosen Peoria as the site for this monumental project. By full completion, the facility is expected to be the largest outsourced advanced packaging facility in the United States, a testament to the rapidly growing and evolving semiconductor sector in the region.
Arizona Governor Katie Hobbs hailed the project as a historic step forward for the state, underscoring its potential to bolster national security, enhance supply chain resilience, and generate significant economic benefits. She emphasized that this investment would firmly establish Arizona as a global leader in the semiconductor industry, marking a continuation of the state’s longstanding leadership in advanced manufacturing.
Amkor’s President and CEO, Giel Rutten, echoed these sentiments, highlighting the expansion of the U.S. semiconductor supply chain and the company’s eagerness to lead in bolstering America’s advanced packaging capabilities. Rutten noted the strategic importance of diversifying geographic footprints for semiconductor companies and supply chain partners, seeing this new facility as a clear indication of Amkor’s commitment to supporting a robust American semiconductor ecosystem.
This strategic decision by Amkor aligns closely with the burgeoning semiconductor manufacturing landscape in Arizona. The state has already made significant strides in this sector, with Taiwan Semiconductor Manufacturing Company (TSMC) announcing the purchase of a large tract of land in north Phoenix for a $12 billion chipmaking facility, which broke ground in 2021 and is expected to start production in 2024. TSMC, a supplier to many leading global manufacturers and holding a significant share of the global semiconductor foundry market, plans to significantly expand its operations in Arizona, with a potential $35 billion investment to build up to five additional fabrication facilities.
The new Amkor facility, poised on approximately 55 acres of land, aims to build a state-of-the-art manufacturing campus with over 500,000 square feet of clean room space. The first phase of the plant is targeted to be operational within the next two to three years, focusing on high volume, leading-edge technologies for advanced packaging and testing of semiconductors. The facility is expected to support critical markets such as high-performance computing, automotive, and communications.
In a significant collaboration, Apple will be the first and largest customer of the new Amkor facility, which will package and test chips produced for Apple at the nearby TSMC fab. This partnership is a testament to the interconnected nature of the semiconductor industry and the vital role of advanced packaging and testing in the production process.
Amkor’s expansion in Peoria reflects the company’s longstanding presence and confidence in the Greater Phoenix area, having first established a foothold there in 1984. The new facility will place Amkor among a strong ecosystem of front-end fabs, IDMs, and suppliers, including TSMC, Intel, Applied Materials, and ASML, among others.
The project has garnered support from the City of Peoria, the Arizona Commerce Authority, and various government authorities, recognizing its potential to enrich the semiconductor ecosystem, create high-tech jobs, and stimulate economic growth in the Greater Phoenix metropolitan area.
To ensure the success of such a large-scale project in the United States, Amkor has applied for funding under the CHIPS and Science Act. This act, established to enhance U.S. competitiveness and national security in the semiconductor industry, allocates $52.7 billion, with $39 billion in competitive grants to U.S. manufacturers. Arizona Senator Mark Kelly highlighted the importance of this funding in supporting projects like Amkor’s, which will create good-paying jobs, strengthen the local economy, and contribute to national security by reducing dependence on foreign microchip supply chains.
In conclusion, the announcement of Amkor’s advanced packaging and test facility in Peoria represents a critical milestone in the advancement of Arizona’s semiconductor industry. It not only exemplifies the state’s growing prominence in this sector but also reflects a broader shift towards enhancing America’s semiconductor manufacturing capabilities and supply chain resilience. This project promises to bring a multitude of economic and strategic benefits to the region, positioning Arizona as a key player in the global semiconductor landscape.
Jeremy Webb
Based in Mohave Valley, Arizona, Jeremy Webb is a dedicated website designer and developer with a keen eye for detail. Transitioning from a background in retail sporting goods management, he now crafts digital spaces that resonate with audiences. Beyond the screen, Jeremy is a passionate writer, delving into topics ranging from business innovations and Arizona’s unique landscapes to the latest tech trends and compelling local narratives. Visit his website at JeremyWebb.Dev
