Amkor Technology to Establish Pioneering Semiconductor Facility in Arizona
In a significant development for the U.S. semiconductor industry, Amkor Technology, Inc., a major player in semiconductor packaging and test services, has entered a preliminary agreement with the U.S. Department of Commerce. This non-binding memorandum outlines Amkor’s eligibility for up to $400 million in funding through the CHIPS and Science Act. Amkor‘s strategic move aims to bolster domestic semiconductor capabilities.
Amkor’s decision to establish its first domestic outsourced semiconductor assembly and test (OSAT) facility in Peoria, Arizona, was initially announced in November 2023. The company plans a substantial investment of about $2 billion, promising to create approximately 2,000 jobs. The facility, which will include over 500,000 square feet of clean room space on a 55-acre campus, is set to become the largest of its kind in the United States upon completion. Production is anticipated to commence in phases, with the first phase operational within three years.
The Peoria facility is a critical component of efforts to enhance the U.S. semiconductor supply chain. By establishing this advanced packaging and test site, Amkor strengthens its role as a key partner to leading semiconductor companies, foundries, and OEMs, while supporting innovation in U.S. semiconductor manufacturing.
Amkor collaborates with TSMC to advance packaging and testing technologies for pivotal sectors like high-performance computing, automotive, and communications. This partnership is part of a broader vision to align technology seamlessly across a global manufacturing network.
U.S. Commerce Secretary Gina Raimondo has identified advanced packaging as essential for the country’s semiconductor manufacturing revival. The Commerce Department stresses the importance of developing advanced packaging manufacturing capabilities as vital for the CHIPS program’s success.
Governor Katie Hobbs highlighted, Today’s announcement underscores Arizona’s position as the semiconductor hub of the U.S. and among the world’s most advanced manufacturing ecosystems.
She emphasized the significance of Amkor’s expansion and its potential to create durable jobs.
Amkor’s President and CEO, Giel Rutten, expressed pride in the company’s commitment to expanding the U.S. semiconductor ecosystem, stating, Amkor’s Arizona facility will enable us to support the growing semiconductor manufacturing community—while creating 2,000 good jobs.
U.S. Secretary of Commerce Gina Raimondo remarked, One of the fundamental goals of the CHIPS and Science Act is creating an advanced packaging ecosystem in the U.S.
She noted the administration’s dedication to ensuring domestic chip production and its impact on the future of technology and national security.
Under Secretary Laurie E. Locascio emphasized the critical nature of advanced packaging, saying, Investments in semiconductors will not succeed without investments in advanced packaging.
The proposed CHIPS funding offers Amkor a pivotal role in the U.S. semiconductor landscape.
Senator Mark Kelly added, This is a big day for the state of Arizona and the entire country.
He highlighted the project’s job creation potential and its role in strengthening the microchip supply chain.
Representative Greg Stanton noted, Arizona is continuing to lead the world in semiconductor innovation.
He emphasized the efficiency and resilience of a localized semiconductor supply chain.
Peoria Mayor Jason Beck expressed enthusiasm, stating, Peoria is thrilled to celebrate this CHIPS Act announcement.
The investment is seen as reinforcing Peoria’s role in tech and innovation.
SIA President and CEO John Neuffer commended Amkor’s investment, noting its importance for the U.S. chip ecosystem and the CHIPS Act’s effectiveness.
Sandra Watson, President and CEO of the Arizona Commerce Authority, celebrated the announcement, saying, Amkor’s advanced packaging and test facility will support leading-edge chipmaking in Arizona.
She highlighted the investment’s impact on supply chain resiliency and job creation.
Amkor, established in the Greater Phoenix area since 1984, sees this expansion as a strategic positioning among a robust ecosystem of semiconductor players. The terms of the agreement also include access to $200 million in proposed loans, with plans to utilize the Department of the Treasury’s Investment Tax Credit for up to 25% of qualified capital expenditures.
About Amkor Technology, Inc.
Amkor Technology, Inc. positions itself as the world’s largest U.S.-headquartered OSAT service provider. Since 1968, Amkor has led the outsourcing of IC packaging and test services, serving as a strategic partner for top semiconductor companies globally. The company’s services span communication, automotive, industrial, computing, and consumer industries, with facilities across Asia, Europe, and the United States. For more information, visit amkor.com.
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